Cat Financial has revealed global earnings of
$668m for the first quarter of 2012, an increase of $28m on the
same period last year. First quarter profit after tax for this year
was $120m – up $37m from last year.

Meanwhile, revenue in the Europe, Arab and
Middle-eastern regions (EAME) for the Financial Products division,
which includes Cat Financial, fell by $9m in Q1 2012 from Q1
2011.

The financial arm of Caterpillar Inc
attributed the increase in revenue to higher earning assets –
financial receivables and operating leases at constant rates –
slightly offset by “unfavourable impact from lower rates on new and
existing receivables and operating leases.”

Pre-income tax profits for Q1 2012 was $170m,
an increase of $55m from Q1 2011. This was due to a $36m decrease
in provision for credit losses and a $31m “favourable impact” from
both higher earning assets and net yield on average earning
assets.

Write-offs were down $30m in Q1 2012.

New retail financing in the first quarter of
2012 was $3.1b, up 11% from the same period last year, due to an
increase in growth across all operating segments, expect for North
America which declined slightly.

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By GlobalData

Cat Financial is forecasting record profits in
2012 based on higher sales, improved price realisation and positive
acquisition impacts.

The company also disclosed that the closure of
the London locomotive assembly facility had a negative impact on
its Q1 results. “We had $38m of closing related expenses and asset
impairments related to the closure of the London facility during
the first quarter of 2012.”