Cat Financial Announces Second Quarter 2006 Results
21 July 2006 - 10:32PM
PR Newswire (US)
PEORIA, Ill., July 21 /PRNewswire-FirstCall/ -- Caterpillar
Financial Services Corporation (Cat Financial) today reported
record revenues of $676 million for the second quarter of 2006, an
increase of $89 million, or 15 percent, compared with the same
quarter in 2005. Profit after tax was $106 million, a $16 million,
or 18 percent, increase over the second quarter of 2005. Of the
increase in revenues over the second quarter of 2005, $67 million
resulted from the impact of the continued growth of finance
receivables and operating leases (earning assets) and $50 million
from the impact of higher interest rates on new and existing
finance receivables. These increases were offset by a $16 million
write-down of a repossessed marine vessel, lower net gains on the
sales of receivables of $8 million and a $4 million decrease in
other miscellaneous revenue. On a pre-tax basis, profit was up $17
million, or 12 percent, compared with the second quarter of 2005,
principally due to an increase of $42 million in margin (wholesale,
retail finance, operating lease, and associated fee revenues less
interest expense and depreciation on assets leased to others) from
a $2.9 billion increase in average earning assets and continuing
improvement in the net yield on earning assets. The increase in
margin was partially offset by the repossessed marine vessel
write-down and the lower net gains on the sales of receivables. New
retail financing grew to a record $3.2 billion. The increase of
$111 million, or 4 percent, over the second quarter of 2005
occurred primarily due to increased new retail financing in North
America. Past dues over 30 days as of June 30, 2006 were 1.70
percent compared to 2.03 percent as of June 30, 2005. Write-offs,
net of recoveries, were $12 million during the quarter compared
with $3 million for the second quarter of 2005. Caterpillar Inc.
Vice President and Cat Financial President Kent M. Adams said, "We
are pleased to announce a record quarter for revenues through the
continued growth of and higher yield on our earning assets. Our
results reflect the coordinated efforts of our employees, the
Caterpillar marketing organizations and the Caterpillar dealers."
For 25 years, Cat Financial, a wholly-owned subsidiary of
Caterpillar Inc., has been providing a wide range of financing
alternatives for Caterpillar machinery and engines, Solar (R) gas
turbines and other equipment and marine vessels. The company also
extends loans to customers and dealers. Cat Financial has offices
and subsidiaries located throughout the Americas, Asia, Australia,
and Europe, with headquarters in Nashville, Tennessee. STATISTICAL
HIGHLIGHTS: SECOND QUARTER 2006 VS. SECOND QUARTER 2005 (ENDING
June 30) (Millions of dollars) 2006 2005 CHANGE Revenues $676 $587
15% Net Profit $106 $90 18% New Retail Financing $3,201 $3,090 4%
Total Assets $27,270 $24,229 13% SIX MONTHS 2006 VS. SIX MONTHS
2005 (ENDING June 30) (Millions of dollars) 2006 2005 CHANGE
Revenues $1,333 $1,130 18% Net Profit $224 $173 29% New Retail
Financing $5,826 $5,533 5% DATASOURCE: Caterpillar Financial
Services Corporation CONTACT: Rusty L. Dunn, Corporate Public
Affairs, of Caterpillar Financial Services Corporation,
+1-309-675-4803, Dunn_ Web site: http://www.cat.com/
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