Cat Financial saw Europe revenues in the third quarter fall 8% year-on-year to $101m (€88m, £78m), in contrast to double-digit growth in the North American and Asia Pacific markets.

The financial services division of yellow goods manufacturer Caterpillar reported a 9% increase in revenues for the quarter, to $845m, next to a 9% rise in profits to $201m.

Higher financing rates and a favourable impact from returns and repossessions contributed to the increase in revenues, but were partially offset by lower financing rates in the European market.

The unit saw $2.8bn in retail new business volumes, up 4%. Europe was the primary contributor to the increase.

Receivables past due stood at 3.47% of Cat Financial’s total portfolio, up from 2.73% a year earlier. The unit said the increase was primarily driven by Cat Power Finance. Write-offs after recoveries totalled $40m, compared to $47m in Q3 2017.

“We were pleased with the solid results delivered by Cat Financial in the third quarter,” said Dave Walton, president of Cat Financial and Caterpillar vice president with responsibility for financial products.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We saw improvement quarter over quarter for most key business drivers, and Cat Financial remains well-positioned to serve Caterpillar customers and dealers worldwide through financial services solutions.”

Revenues on the rise but profits lag in year-to-date

For the nine months to September 30, Cat Financial saw a 7% year-on-year revenue increase to $2.1bn, driven by significantly higher new business volumes at $8.9bn, up 15%.

Despite this, profits were lagging behind 2017’s nine-months results. After tax profits attributable to Cat financial were $287m as of September, compared to $315m at the same point in time last year.

For the whole of 2017, the division reported $2.69bn in revenues, up 4%, and pre-tax profits of $590m, up 29%. A lower US corporate tax regime benefitted Cat Financial for $151m over the year, which was partially offset by mandatory repatriation of non-US assets.