April 25, 2017
FOR IMMEDIATE RELEASE
Cat Financial Announces First-Quarter 2017 Results
Cat Financial reported first-quarter 2017 revenues of $662 million, an increase of $19 million, or 3 percent, compared with the first quarter of 2016. First-quarter 2017 profit was $115 million, a $15 million, or 15 percent, increase from the first quarter of 2016.
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 the first quarter of 2017, compared with $145 million for the first quarter of 2016. 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 percent in the first quarter of both 2017 and 2016.
During the first quarter of 2017, retail new business volume was $2.34 billion, an increase of $47 million, or 2 percent, from the first quarter of 2016. 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 of the first quarter of 2017, past dues were 2.64 percent, compared with 2.78 percent at the end of the first quarter of 2016. Write-offs, net of recoveries, were $15 million for the first quarter of 2017, compared with $31 million for the first quarter of 2016.
As of March 31, 2017, the allowance for credit losses totaled $346 million, or 1.28 percent of finance receivables, compared with $340 million, or 1.21 percent of finance receivables at March 31, 2016. The allowance for credit losses at year-end 2016 was $343 million, or 1.29 percent 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 Inc. "The global Cat Financial team delivered solid results and we continue to be well-positioned to serve Caterpillar, Cat dealers and customers worldwide."
For over 35 years, Cat Financial, a wholly owned subsidiary of Caterpillar Inc., has been providing financial service excellence to customers. The company offers a wide range of financing alternatives to customers and Cat dealers for Cat machinery and engines, Solar® gas turbines, and other equipment and marine vessels. Cat Financial has offices and subsidiaries located throughout North and South America, Asia, Australia and Europe, with its headquarters in Nashville, Tennessee.
Caterpillar contact: Corrie Scott, 309-675-0425 (Office), 808-351-3865 (Mobile) or Scott_Corrie@cat.com