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

  • How Florida paved the way for availability payments in the US
    November 21, 2014
    New financing models have been used to deliver key transport links in the US - * Patrick D Harder and Brandon J Davis Florida Department of Transportation’s (FDOT) public-private partnership (PPP) programme has made impressive progress, setting precedents for US transportation planning and funding. On March 26th 2014, FDOT opened 16km of new reversible express lanes as part of its US$1.8 billion I-595 Corridor Roadway Improvements Project. Just a few months later, on August 3rd 2014, FDOT opened twin tunnel
    Read More
  • Australia responds to infrastructure funding challenge
    July 13, 2012
    The Global Financial Crisis (GFC) has drastically changed the way governments and the private sector is prepared to procure vital infrastructure projects, says Philip Davies Governments have responded to the GFC by focusing on long term investment in transport infrastructure and shorter term stimulus packages to kick-start economies. As these projects proceed, the focus will shift to maintaining and achieving maximum benefits from assets and future infrastructure funding. The Public Private Partnership (PP
    Read More
  • Salini Impregilo expands in the US with purchase of Lane Industries
    November 12, 2015
    Italian global infrastructure group Salini Impregilo has agreed to buy 100% of Lane Industries, an American highways contractor and the “top private asphalt producer” in the US. Lane, a family-owned business based in Cheshire, Connecticut, was bought for US$406 million and has a turnover of around $1.5 billion. The company has three divisions: asphalt production, road projects and other infrastructure projects, in domestic and international markets. A statement from Salini said Lane is participating i
    Read More
  • China looks to the future with major highway plans
    February 15, 2012
    China is still moving ahead with plans that will give it the world's biggest highway system. Patrick Smith reports. As China's economy grows even more, keeping the country on the move has become a priority for the government. While the country has made great strides over the past decade in improving its infrastructure, the number of vehicles has also increased rapidly, and in some instances restrictions have been placed on them.
    Read More

Highlighted Content