Cat Financial Services announces third quarter 2014 results

Cat Financial Services, the finance arm of Caterpillar Inc., reported third-quarter 2014 revenues of US$743 million, an increase of $44 million, or 6%, compared with the third quarter of 2013.
October 23, 2014 Read time: 2 mins

Cat Financial Services, the finance arm of 178 Caterpillar Inc., reported third-quarter 2014 revenues of US$743 million, an increase of $44 million, or 6%, compared with the third quarter of 2013.

Q3 2014 profit after tax was $148 million, a $31 million, or 26% increase from the same period 2013.

The statement said the revenue increase was due mostly to a $37 million favourable impact from higher average earning assets.

Profit before income taxes was $197 million for the third quarter of 2014, compared with $164 million for the third quarter of 2013.

During Q3 2014, retail new business volume was $3.13 billion, a decrease of $38 million, or 1%, from the third quarter of 2013. The decrease was primarily related to lower volume in mining, partially offset by increases in Cat equipment sales in North America.

At the end of the third quarter of 2014, past dues (of loans) were 2.81 percent, compared with 2.77 percent at the end of the second quarter of 2014, 2.47 percent at the end of 2013 and 2.51 percent at the end of the third quarter of 2013. The increase reflects higher past dues in the Latin American, Asia/Pacific and European portfolios. Write-offs, net of recoveries, were $16 million for the third quarter of 2014, compared with $58 million for the third quarter of 2013.

As of September 30, 2014, Cat Financial's allowance for credit losses (estimation of unrecoverable debt) totalled $405 million or 1.37% of net finance receivables, compared with $412 million or 1.43% of net finance receivables as of September 30, 2013.

“Continued growth and strong yield performance in our earning asset base and the solid performance of our portfolio have resulted in another good quarter for Cat Financial,” said Kent Adams, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc.

Finance & Funding

For more information on companies in this article

Related Content

  • Ritchie Bros. auction in Dubai passes US$41 million mark
    March 3, 2016
    Ritchie Bros. started strong with its first Dubai auction of 2016, selling more than US$41 million of equipment and trucks on March 1-2. This was a 54% increase in gross auction proceeds compared to the March Dubai sale last year, the company said. Around $4.5 million worth of equipment went to on-line bidders. The Canadian company shifted more than 2,000 items for over 200 sellers during the two-day unreserved public auction. "People from 71 countries registered for the auction, with buyers from a
    Read More
  • Italian construction machine firms see resurgence
    July 25, 2017
    The Italian construction machinery builders association, UNACEA, reports a resurgence in demand for equipment during 2017. According to UNACEA’s latest report, the first six months of 2017 have seen 5,109 machines sold in the Italian market, an increase of 6% compared to last year. Looking more closely, sales of earthmoving machines grew 6% with 4,910 machines sold, while sales of road equipment increased by 9% with 199 machines sold.
    Read More
  • Mixed US transportation outlook for 2012 according to ARTBA
    April 26, 2012
    The outlook for the 2012 transportation construction market is mixed, according to the American Road & Transportation Builders Association's (ARTBA). The 2012 Transportation Construction Market forecast from ARTBA shows that the industry will face uncertain times during next year.
    Read More
  • MIRA builds on reputation for transport excellence
    October 3, 2012
    MIRA in central England has begun a huge redevelopment of its 830 acre site that will see the renowned centre for transport technologies expand its capabilities while, at the same time, create the largest transport research and development technology park in Europe. Guy Woodford reports This is all very impressive,” said Deputy Prime Minister Nick Clegg in April 2011 on hearing a presentation of MIRA’s ambitious expansion plans. As succinct appraisals go, Clegg’s view of MIRA’s plans to develop its brand of
    Read More

Highlighted Content