NASHVILLE, Tenn., April 25,
2024 /CNW/ -- Cat Financial reported first-quarter
2024 revenues of $853 million, an
increase of $85 million, or 11%,
compared with $768 million in the
first quarter of 2023. The increase in revenues was primarily due
to a $69 million favorable impact
from higher average financing rates and a $32 million favorable impact from higher average
earning assets. First-quarter 2024 profit was $169 million, an increase of $20 million, or 13%, compared with $149 million in the first quarter of 2023.
First-quarter 2024 profit before income taxes was $229 million, an increase of $25 million, or 12%, compared with $204 million in the first quarter of 2023. The
increase was mainly due to a $33
million insurance settlement, a $14
million favorable impact from higher average earning assets
and a $12 million favorable impact
from currency exchange. These favorable impacts were partially
offset by a $21 million increase in
GO&A expenses and $17 million
unfavorable impact from returned or repossessed equipment.
The provision for income taxes reflected an estimated annual tax
rate of 26% for both the first quarter of 2024 and 2023.
During the first quarter of 2024, retail new business volume was
$2.74 billion, an increase of
$278 million, or 11%, compared with
$2.46 billion in the first quarter of
2023. The increase was primarily driven by higher volume in
North America.
At the end of the first quarter of 2024, past dues at Cat
Financial were 1.78%, compared with 2.00% at the end of the first
quarter of 2023. Write-offs, net of recoveries, were $55 million for the first quarter of 2024,
compared with $10 million for the
first quarter of 2023. As of March 31,
2024, Cat Financial's allowance for credit losses totaled
$281 million, or 1.01% of finance
receivables, compared with $331
million, or 1.18% of finance receivables at December 31, 2023.
"The Cat Financial team remains focused on execution of our
strategy and supporting Caterpillar customers and dealers with
financial services solutions," said Dave
Walton, President of Cat Financial and Senior Vice President
with responsibility for the Financial Products Division of
Caterpillar Inc. "Past dues remain at historically low levels
reflecting strong portfolio health, and we continue to deliver
solid operational results."
About Cat Financial
Cat Financial is a subsidiary of Caterpillar, the world's
leading manufacturer of construction and mining equipment, diesel
and natural gas engines, industrial gas turbines, and
diesel-electric locomotives. Cat Financial provides a wide range of
financing solutions to customers and Cat® dealers for
machines, engines, Solar® turbines, genuine Cat parts and
services. Headquartered in Nashville, Tennessee, Cat Financial serves
customers globally with offices and subsidiaries located throughout
North and South America,
Asia, Australia, Europe and Africa. Visit cat.com to learn more about Cat
Financial.
STATISTICAL HIGHLIGHTS:
FIRST-QUARTER 2024
VS. FIRST-QUARTER 2023
(ENDED MARCH
31)
(Millions of
dollars)
|
|
|
2024
|
|
2023
|
|
CHANGE
|
Revenues
|
$
|
853
|
|
$
|
768
|
|
11 %
|
Profit Before Income
Taxes
|
$
|
229
|
|
$
|
204
|
|
12 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
169
|
|
$
|
149
|
|
13 %
|
Retail New Business
Volume
|
$
|
2,742
|
|
$
|
2,464
|
|
11 %
|
Total Assets at March
31 and December 31, respectively
|
$
|
33,087
|
|
$
|
33,112
|
|
— %
|
FORWARD-LOOKING STATEMENTS
Certain statements in this press release relate to future events
and expectations and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "believe," "estimate," "will be," "will," "would,"
"expect," "anticipate," "plan," "project," "intend," "could,"
"should" or other similar words or expressions often identify
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements, including, without
limitation, statements regarding our outlook, projections,
forecasts or trend descriptions. These statements do not guarantee
future performance and speak only as of the date they are made, and
we do not undertake to update our forward-looking statements.
Cat Financial's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) disruptions
or volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers
; (ii) failure to maintain our credit ratings and potential
resulting increases to our cost of borrowing and adverse effects on
our cost of funds, liquidity, competitive position and access to
capital markets; (iii) changes in interest rates, currency
fluctuations or market liquidity conditions; (iv) an increase in
delinquencies, repossessions or net losses of our customers; (v)
residual values of leased equipment; (vi) our compliance with
financial and other restrictive covenants in debt agreements; (vii)
government monetary or fiscal policies; (viii) political and
economic risks, commercial instability and events beyond our
control in the countries in which we operate; (ix) demand for
Caterpillar products; (x) marketing, operational or administrative
support received from Caterpillar; (xi) our ability to develop,
produce and market quality products that meet our customers' needs;
(xii) information technology security threats and computer crime;
(xiii) alleged or actual violations of trade or
anti-corruption laws and regulations; (xiv) new regulations or
changes in financial services regulations; (xv) additional tax
expense or exposure; (xvi) changes in accounting guidance; (xvii)
catastrophic events, including global pandemics such as the
COVID-19 pandemic; and (xviii) other factors described in more
detail in Cat Financial's Forms 10-Q, 10-K and other filings with
the Securities and Exchange Commission.
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SOURCE Cat Financial