Caterpillar expects sales in Ukraine to grow up to 40 per cent –
thanks largely to its launch of a captive leasing arm in the
country last October.
This increase, equivalent to some $140m, compares with sales of
some $100m during 2007, Andrii Shevel, director of Caterpillar
Financial Ukraine, told Ukrainian News.
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Zeppelin Ukraine, which distributes Caterpillar equipment and
machines in Ukraine, linked the increase in Cat’s sales with the
launch of the captive finance arm.
Cat FS offers financial leasing in the Ukraine for excavation
equipment, road building machines, farming equipment, and diesel
electric-generating units.
Cat growth plans for Ukraine follows a bumper period for
Caterpillar in developing economies. Its machinery arm saw a 28 per
cent increase in sales during Q1 2008, results driven largely by
Central and Eastern Europe and other parts of the developing world.
Company sales of machinery in its Europe Africa and Middle East
region (EAME) increased by 27 per cent, despite a 10 per cent
decline in European housing.
Significant growth in Russia was driven by low interest rates
and economic growth, while an upturn in natural gas, coal and oil
production in Kazakhstan resulted in heightened sales volumes in
that central Asian country.
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By GlobalDataHowever, Cat expects a downturn in the developing world in 2008
caused by a tightening of economic policies aimed at slowing growth
and reducing inflation.
Meanwhile, it is understood that Caterpillar Financial Services
Ireland is owed some €5.5m by Cork-based Howley Civil Engineering
Ltd, which has recently become the subject of an examinership, the
equivalent of an administration.
Cat FS achieved record profits and revenues during the first
quarter of 2008. Revenues totalled $817m, 18 per cent higher than
the equivalent quarter in 2008.
Total profits for the leasing arm rose 17 per cent to reach
$195m. This increase was partly attributed to a $13m net yield
improvement in net earning assets, although this was offset by a
$19m increase in provision for credit losses.
Revenues in its Europe Africa and Middle East region increased
36 per cent, compared with just 6 per cent in its North America
business.
Growth in Cat FS’ average earning assets increased revenues by
$102m, while revenues from premiums at Cat Insurance increased by
$19m.
The proportion of Caterpillar’s sales and revenues from outside
the US grew 5 per cent to reach 58 per cent at the end of Q1 2008.
Machinery sales grew 16 per cent and engine sales rose 22 per
cent.
