Cat Financial Q3/14 Profit Up 26%, Volume Down 1%



Cat Financial reported Q3/14 revenues of $743 million, an increase of $44 million, or 6%, compared with Q3/13. Third-quarter 2014 profit after tax was $148 million, a $31 million, or 26%, increase from the third quarter of 2013. The increase in revenues was primarily due to a $37 million favorable impact from higher average earning assets.

Cat said during Q3/14, retail new business volume was $3.13 billion, a decrease of $38 million, or 1%, from the third quarter of 2013. The decrease was primarily related to lower volume in mining, partially offset by increases in Cat equipment sales in North America.

Profit before income taxes was $197 million for the third quarter of 2014, compared with $164 million for the third quarter of 2013. The increase was primarily due to a $23 million improvement on net yield on average earning assets and a $16 million favorable impact from higher average earning assets.

At the end of the third quarter of 2014, past dues were 2.81%, compared with 2.77% at the end of the second quarter of 2014, 2.47 percent at the end of 2013 and 2.51% at the end of the third quarter of 2013. The increase reflects higher past dues in the Latin American, Asia/Pacific and European portfolios. Write-offs, net of recoveries, were $16 million for the third quarter of 2014, compared with $58 million for the third quarter of 2013.

“Continued growth and strong yield performance in our earning asset base and the solid performance of our portfolio have resulted in another good quarter for Cat Financial,” said Kent Adams, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc.

To view the full Cat Financial report, click here.


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