Cat Financial, the financial arm of Caterpillar Inc., revealed promising financial results for Q1 2024. Past dues decreased to 1.78%, down from 2.00% in Q1 2023, while write-offs amounted to $55 million compared to $10 million in the previous year.
Despite a decline in allowance for credit losses to $281 million, equivalent to 1.01% of finance receivables, from $331 million in December 2023, Cat Financial remains robust.
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The company provides financing solutions to Cat customers and dealers for various equipment. Caterpillar Inc., the US-based manufacturer of construction and mining equipment, reported a 5% decrease in its construction industries segment sales, attributing it to lower sales volume.
Despite challenges, Caterpillar’s resource industries’ total sales decreased by 7% to $3.19 billion.
Chairman and CEO Jim Umpleby expressed satisfaction with the company’s performance, aiming for long-term growth amidst inventory concerns. Analysts highlight the industry’s anticipation of a sales slowdown, despite Caterpillar’s positive price realisation, indicating a shift in market dynamics.
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