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

  • CEA: UK equipment sales show modest growth in 2018
    February 26, 2019
    Retail sales of construction and earthmoving equipment in the UK market grew by 2% in 2018, despite a drop in the last quarter. Prior to the 8% reduction in sales in Q4 (compared with Q4 2017), the trend over the previous two years had been to show steady, but slowing growth each quarter (see graph). Retail sales in the UK market reached nearly 31,000 units, according to the Construction
    Read More
  • Volvo CE president says 2012 was “reasonable year” despite lack of sales growth
    February 7, 2013
    Sharply reduced global demand for construction equipment in the final three months of last year led to Volvo Construction Equipment’s (CE) full 2012 year sales growing by less than 1%, compared to sales in 2011. Volvo CE sales reached US$10.037 billion (SEK 63,558mn) in 2012, compared to $10.028 billion (SEK 63,500mn) the previous year. Operating income was down to $911.7mn (SEK 5,773mn), from $1.075 billion (SEK 6,812mn) in 2011, operating margin was 9.1% in 2012, down from 10.7% 12 months earlier, and the
    Read More
  • Sales up 30% in Volvo CE’s Q1 2018
    April 24, 2018
    Significant market demand increases in all major regions – especially in Asia - helped propel Volvo Construction Equipment to a strong first quarter of 2018. During the first three months of the year, Volvo CE saw net sales jump by 30% to SEK 20,914m (€2.013bn – up from €1.55bn in Q1 2017). Operating income rose to SEK 2,888m (€278.03m), up 79% compared to SEK 1,615m (€155.48m) in the first quarter of 2017. Operating margin also saw strong improvement, at 13.8%, compared to 10% in the same period the year
    Read More
  • VDMA’s optimistic 2014 outlook
    February 21, 2014
    The VDMA has given an optimistic 2014 performance forecast for the German construction equipment and building material machinery industry. Compared to the previous year, industry turnover declined slightly in 2013 by 6% to €11.7 billion. But incoming orders for construction equipment are said by the VDMA to have risen by 7% in 2013, compared to 2012. The VDMA predicts a 5% turnover rise in 2014, compared to the previous 12 months. “We can look back on a satisfactory business year overall; given all the
    Read More

Highlighted Content