Cat Financial reported Q2/16 revenues of $659 million, a decrease of $24 million, or 4%, compared with Q2/15. Q2/16 profit was $102 million, a $2 million, or 2% decrease from Q2/15.

The decrease in revenues was primarily due to a $15 million unfavorable impact from lower average earning assets.

Profit before income taxes was $148 million for Q2/16, compared with $150 million for Q2/15. The decrease was primarily due to an $11 million unfavorable impact from the sale of returned or repossessed equipment primarily driven by the absence of gains recorded in Q2/15, a $7 million unfavorable impact from lower average earning assets and an unfavorable impact from other miscellaneous items. These unfavorable impacts were partially offset by an $11 million decrease in provision for credit losses and an $11 million decrease in general, operating and administrative expenses.

During Q2/16, retail new business volume was $3.06 billion, an increase of $319 million, or 12%, from Q2/15. The increase was related to higher volume primarily in North America and Europe.

At the end of Q2/16, past dues were 2.93%, compared with 2.97% at the end of Q2/15. Write-offs, net of recoveries, were $33 million for Q2/16, compared with $38 million for Q2/15.

As of June 30, 2016, the allowance for credit losses totaled $346 million, or 1.25% of net finance receivables, compared with $405 million, or 1.42% of net finance receivables at June 30, 2015. The allowance for credit losses at year-end 2015 was $338 million, or 1.22%t of net finance receivables.

“Our focus has remained on maintaining solid portfolio performance during the current period of weakness in some of the key end markets we serve,” said Kent Adams, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar. “The global Cat Financial team remains dedicated to helping Caterpillar customers and Cat dealers succeed through financial services excellence.”