Cat Financial Q2 Profit Up 32%, Volume Up 2%



Cat Financial reported Q2/14 revenues of $728 million, an increase of $34 million, or 5%, compared with Q2/13. Second-quarter 2014 profit after tax was $146 million, a $35 million, or 32%, increase from the second quarter of 2013. The increase in revenues was primarily due to a $36 million favorable impact from higher average earning assets.

Cat said during Q2/14, retail new business volume was $3.44 billion, an increase of $56 million, or 2%, from the second quarter of 2013. The increase was primarily related to increases in sales of Cat equipment in North America, partially offset by decreases in Mining.

Profit before income taxes was $206 million for the second quarter of 2014, compared with $158 million for the second quarter of 2013. The increase was primarily due to the absence of a $23 million currency loss in the second quarter of 2013, a $17 million favorable impact from higher average earning assets and a $16 million improvement on net yield on average earning assets.

At the end of the second quarter of 2014, past dues were 2.63%, compared with 2.44% at the end of the first quarter of 2014, 2.37% at the end of 2013 and 2.64% at the end of the second quarter of 2013. The increase in past dues from the first quarter of 2014 and the end of 2013 reflects higher past dues in the Latin American, Asia/Pacific and European portfolios. Write-offs, net of recoveries, were $19 million for the second quarter of 2014, compared with $27 million for the second quarter of 2013.

“We are pleased with our continued solid performance in the second quarter driven by the continued growth in earning assets,” said Kent Adams, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc. “The global Cat Financial team remains focused on helping Caterpillar customers and Cat dealers succeed through financial services excellence.”

To view the full Cat Financial release, click here.


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