Cat Financial Q2 New Retail Volume Up 32%
Cat Financial reported second-quarter 2012 revenues of $668 million, a decrease of $7 million, or 1%, compared with the second quarter of 2011. Second-quarter 2012 profit after tax was $104 million, a $3 million, or 3%, decrease from the second quarter of 2011.
New retail financing in the second quarter of 2012 was $3.8 billion, an increase of $938 million, or 32%, from the second quarter of 2011.
The decrease in revenues was principally due to a $28 million unfavorable impact from lower rates on new and existing finance receivables and operating leases and $9 million lower net gains from returned or repossessed equipment, partially offset by a $33 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates).
Profit before income taxes was $144 million for the second quarter of 2012, compared to $152 million for the second quarter of 2011. The decrease was principally due to $9 million lower net gains from returned or repossessed equipment, a $5 million unfavorable impact from currency gains and losses and a $4 million increase in general, operating and administrative expense. These decreases were partially offset by a $13 million favorable impact from higher average earning assets.
“We are very pleased with Cat Financial’s performance in the second quarter,” said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. “Our portfolio continues to perform well, with lower past dues and a significant reduction in write-offs compared to a year ago. Additionally, our global team continues to focus on our captive finance role to help Caterpillar customers and dealers succeed, resulting in a significant increase in new retail financing during the second quarter.”
To read the Cat Financial news release click here.