Cat Financial, the finance company of Caterpillar, reported profit of $100m (€89m) in the first quarter of 2016, 25% lower than the same period in 2015.

The company’s revenues decreased by 7% year-on-year ($46m) to $643m. "The decrease in revenues was primarily due to a $23m unfavourable impact from lower average earning assets and a $13m unfavourable impact from lower average financing rates," wrote the company.

Profit before income tax stood at $145m for the first quarter of 2016, compared with $187m for Q1 2015. Cat Financial said the decrease was primarily due to a $17m decrease in net yield on average earning assets reflecting geographic mix changes and currency impacts, an $11m increase in provision for credit losses and a $10m unfavourable impact from lower average earning assets.

During the first three months of the year, retail new business volume stood at $2.29bn – $173m (7%) down year-on-year. "The decrease was primarily related to lower volume in mining and marine portfolios," the company explained.

Over this period there was a rise in write-offs – net of recoveries – from $12m to $31m. The allowance for credit losses decreased from $392m in Q1 2015 to $340m in Q1 2016.