Cat Financial reported Q1/17 revenues of $662 million, an increase of $19 million, or 3%, compared with Q1/16. Q1/17 profit was $115 million, a $15 million, or 15%, increase from Q1/16.
According to Cat, the increase in revenues was due to a $24 million favorable impact from higher average financing rates and a $12 million favorable impact from miscellaneous revenue items, partially offset by a $17 million unfavorable impact from lower average earning assets.
Profit before income taxes was $167 million for Q1/17, compared with $145 million for Q1/16. Cat said the increase was primarily due to a $13 million decrease in provision for credit losses and a $9 million favorable impact from miscellaneous revenue items.
The provision for income taxes reflects an estimated annual tax rate of 30% in both Q1/17 and Q1/16.
During Q1/17, retail new business volume was $2.34 billion, an increase of $47 million, or 2%, from Q1/16. The increase was primarily related to higher volume in Asia/Pacific and North America, partially offset by decreases in Caterpillar Power Finance and Latin America.
At the end Q1/17, past dues were 2.64%, compared with 2.78% at the end of Q1/16. Write-offs, net of recoveries, were $15 million for Q1/17, compared with $31 million for Q1/16.
As of March 31, 2017, the allowance for credit losses totaled $346 million, or 1.28% of finance receivables, compared with $340 million, or 1.21% of finance receivables at March 31, 2016. The allowance for credit losses at year-end 2016 was $343 million, or 1.29% of finance receivables.
“Our portfolio and business performed well, reflecting a stable portfolio and good operational execution,” said Dave Walton, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar. “The global Cat Financial team delivered solid results and we continue to be well-positioned to serve Caterpillar, Cat dealers and customers worldwide.”
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!