Cat Financial’s second-quarter profit after
tax was $104m (€85.7m), down $3m, or 3%, year-on-year. It also
reports second quarter revenues of $668m, a decrease of $7m, or 1%,
compared with the same period last year.
The global captive finance company’s decrease
in revenues was principally due to a $28m hit from lower rates on
new and existing finance receivables and operating leases and $9m
lower net gains from returned or repossessed equipment, partially
offset by a $33m income from higher average earning assets.
New retail financing in the second quarter was
$3.8bn, an increase of $938m, or 32%, from second quarter 2011, due
to growth across all operating segments, primarily in the plant
manufacturer’s Asia-Pacific and mining businesses.
At the end of the quarter, past dues were
3.35% compared with 3.19% at the end of Q1, 2.89% at the end of
2011 and 3.73% at the end of the second quarter of 2011. Although
past dues have improved when compared with the second quarter of
2011, the increase from the end of 2011 and from the first quarter
of 2012 reflects higher delinquencies in European marine and China
portfolios. Write-offs, net of recoveries, were $16m for the
period, down from $29m in the second quarter of 2011.
As of 30 June, Cat Financial’s allowance for
credit losses totalled $393m or 1.47% of net finance receivables,
compared with $369m or 1.47% of net finance receivables at year-end
2011. The allowance for credit losses as of 30 June 2011 was $382m,
which was 1.52% of net finance receivables.
Cat Financial president and vice-president of
Caterpillar Inc, Kent Adams, said: “We are very pleased with Cat
Financial’s performance in the second quarter. Our portfolio
continues to perform well, with lower past dues and a significant
reduction in write-offs compared to a year ago.
“Additionally, our global team continues to
focus on our captive finance role to help Caterpillar customers and
dealers succeed, resulting in a significant increase in new retail
financing during the second quarter.”