Cat Financial, Caterpillar’s
captive finance subsidiary, has seen revenue fall by 13 percent
year-on-year in the first quarter of 2009. Revenues totalled $681
million (€491 million), a decrease of $105 million on the first
quarter of 2008.
The captive attributed the decrease
principally to the impact of lower interest rates on new and
existing finance receivables, as well as write-downs and
unfavourable impacts from returned or repossessed equipment.
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Pre-tax revenue at Cat Financial was
also down, falling to $71 million in the first quarter compared
with $188 million in the same period the previous year.
Compared with past dues of 2.8 percent
in the first quarter of 2008, past dues increased significantly
year-on-year, to 5.44 percent. Meanwhile write-offs, net of
recoveries, nearly doubled year-on-year to $47 million from last
year’s $20 million.
“While past dues increased,
particularly in Europe and Latin America, losses were managed
within expectations,” said Kent Adams, Cat Financial president and
vice-president of Caterpillar Inc.
“In addition, we have implemented
several actions aimed at reducing costs including employment
reductions and other general, operating and administrative
expenses.”
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By GlobalDataLooking forward, Cat Financial expects
recessionary conditions to persist in most of the world throughout
2009, with no growth in the world economy.
Jason T Hesse
