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Cat Financial Announces 2012 Year-End Results - Full-Year 2012 vs. Full-Year 2011 - Caterpillar.com
Cat Financial Announces 2012 Year-End Results

 

NewswireToday - /newswire/ - Peoria, IL, United States, 2013/01/28 - Full-Year 2012 vs. Full-Year 2011 - Caterpillar.com. NYSE: CAT

   
 
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Cat Financial reported revenues of $2.69 billion for 2012, an increase of $48 million, or 2 percent, compared with 2011. Profit after tax was $432 million, a $54 million, or 14 percent, increase from 2011.

The increase in revenues was primarily due to a $223 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $139 million unfavorable impact from lower average financing rates on new and existing finance receivables and operating leases and a $33 million unfavorable impact from returned or repossessed equipment.

Profit before income taxes was $591 million for 2012, compared with $504 million for 2011. The increase was primarily due to an $89 million favorable impact from higher average earning assets, a $22 million favorable impact from mark-to-market adjustments that were recorded on interest rate derivative contracts and a $15 million decrease in the provision for credit losses. These increases in pre-tax profit were partially offset by a $33 million unfavorable impact from returned or repossessed equipment.

The provision for income taxes reflects an annual tax rate of 25 percent for both 2012 and 2011. The 2011 provision for income taxes included a $15 million benefit related to prior years.

New retail financing for 2012 was $13.96 billion, an increase of $2.63 billion, or 23 percent, from 2011. The increase was a result of growth across all operating segments, with the largest increases occurring in our Europe and Caterpillar Power Finance, Asia/Pacific and Mining operating segments.

During 2012, Cat Financial’s overall portfolio quality reflected continued improvement. At the end of 2012, past dues were 2.26 percent compared with 2.80 percent at the end of the third quarter of 2012 and 2.89 percent at the end of 2011.

Write-offs, net of recoveries, were $102 million for the full-year 2012, compared with $158 million for 2011. Full-year 2012 write-offs, net of recoveries, were 0.42 percent of average annual retail portfolio, compared with 0.70 percent in 2011.

At year-end 2012, Cat Financial's allowance for credit losses totaled $426 million or 1.49 percent of net finance receivables, compared with $369 million or 1.47 percent of net finance receivables at year-end 2011. The overall increase of $57 million in allowance for credit losses during the year reflects a $51 million increase in allowance due to an increase in the Cat Financial net finance receivables portfolio and a $6 million increase associated with the higher allowance rate.

Fourth-Quarter 2012 vs. Fourth-Quarter 2011
Cat Financial reported fourth-quarter 2012 revenues of $679 million, an increase of $17 million, or 3 percent, compared with the fourth quarter of 2011. Fourth-quarter profit after tax was $99 million, a $4 million, or 4 percent, increase from the fourth quarter of 2011.

The increase in revenues was primarily due to an $80 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $52 million unfavorable impact from lower average financing rates on new and existing finance receivables and operating leases and a $12 million unfavorable impact from returned or repossessed equipment.

Profit before income taxes was $124 million for the fourth quarter of 2012, compared with $111 million for the fourth quarter of 2011. The increase was primarily due to a $32 million favorable impact from higher average earning assets, a $6 million decrease in general, operating and administrative expense and a $5 million favorable impact from mark-to-market adjustments that were recorded on interest rate derivative contracts. These increases were partially offset by a $17 million increase in the provision for credit losses and a $12 million unfavorable impact from returned or repossessed equipment.

The provision for income taxes in the fourth quarter reflects an annual tax rate of 25 percent for both 2012 and 2011. The 2011 fourth-quarter provision for income taxes included an $18 million benefit related to prior years.

New retail financing in the fourth quarter of 2012 was $3.85 billion, an increase of $840 million, or 28 percent, from the fourth quarter of 2011. The increase was a result of growth across all operating segments, with the largest increases occurring in our North America, Europe and Caterpillar Power Finance and Latin America operating segments.

“We are very pleased with the growth in our new retail financing volume and the performance of our portfolio during 2012,” said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. “Past dues and write-offs also improved during the year, and are at the lowest levels since 2007. We continue to be well positioned to serve Caterpillar, Cat dealers, and our customers world-wide.”

For over 30 years, Cat Financial, a wholly-owned subsidiary of Caterpillar Inc., has been providing financial service excellence to Cat customers. The company offers a wide range of financing alternatives to customers and Cat dealers for Cat machinery and engines, Solar® gas turbines and other equipment and marine vessels. Cat Financial has offices and subsidiaries located throughout the Americas, Asia, Australia and Europe, with headquarters in Nashville, Tennessee.

 
 
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Written by / Agency / Source: Caterpillar, Inc.

 
 

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Cat Financial Announces 2012 Year-End Results

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Caterpillar |
Publisher Contact: Jim Dugan - Caterpillar.com 
309-494-4100 / 309-360-7311 (mobile) Dugan_Jim[.]cat.com
 
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