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

  • Compact equipment leads the way to record results for Wacker Neuson
    August 4, 2015
    Light and compact equipment maker Wacker Neuson Group, based in Munich, Germany, reported record revenue and earnings for the first half of 2015. Revenue for the first six months of 2015 increased 14% relative to the same period 2014, reaching €706.4 million, a record high, the company said in a written statement. “Our business grew significantly, despite negative market developments in many countries, especially outside of the US and Europe,” said Cem Peksaglam, chief executive of Wacker Neuson.
    Read More
  • Caterpillar bullish with strong results
    July 30, 2018
    Caterpillar reports strong financial performance for sales in the second quarter of 2018. The firm's sales and revenues hit US$14 billion for the period, compared with $11.3 billion in the second quarter of 2017, a 24%. Second-quarter 2018 profit/share of $2.82 was a second-quarter record. Profit/share was $1.35 in the second quarter of 2017. Adjusted profit per share in the second quarter of 2018 was $2.97, compared with second-quarter 2017 adjusted profit/share of $1.49.
    Read More
  • Q2 sales down but market share up for Volvo Construction Europe
    July 19, 2016
    Volvo Construction Equipment reports share growth as overall market declines in Q2. Lower demand in most markets outside Europe weighed on Volvo CE’s second quarter 2016 revenue. But this was partially offset by gains in market share in the heavy equipment segment, according to a written statement from the Swedish manufacturer. Adjusted for currency movements, Volvo CE reported net sales down 7% in the second quarter of 2016, impacted by lower demand in most markets outside Europe. Weaker machine sal
    Read More
  • Volvo CE posts 6% Q4 sales increase
    February 4, 2021
    After a steep drop in demand in the first half of 2020 due to the Covid-19 pandemic, Volvo Construction Equipment (Volvo CE) says it has recovered well and achieved improvements in both sales and operating income in the fourth quarter of the year.
    Read More

Highlighted Content