Cat Financial Announces Record First Quarter 2007 Results
20 April 2007 - 10:31PM
PR Newswire (US)
NASHVILLE, Tenn., April 20 /PRNewswire-FirstCall/ -- Caterpillar
Financial Services Corporation (Cat Financial) today reported
record first-quarter revenues of $713 million, an increase of $56
million, or 9 percent, compared with the same quarter in 2006.
First-quarter profit after tax was a record $125 million, a $7
million, or 6 percent, increase over the first quarter of 2006. Of
the increase in revenues, $36 million resulted from the impact of
higher interest rates on new and existing finance receivables, $22
million resulted from the impact of continued growth of finance
receivables and operating leases (earning assets) offset by a $2
million decrease in other revenue items. On a pre-tax basis, profit
was up $9 million, or 5 percent, compared with the first quarter of
2006. The increase was principally due to an increase of $22
million in margin (wholesale, retail finance, operating lease and
associated fee revenues less interest expense and depreciation on
assets leased to others), offset by a $6 million increase in
provision expense, a $5 million increase in operating expenses and
a $2 million decrease in other revenue items. Of the increase in
margin, $13 million was due to an improvement in net yield on
average earning assets, and $9 million resulted from the growth in
average earning assets over 2006 of $919 million. New retail
financing was $2.74 billion, an increase of $119 million, or 5
percent, from the first quarter of 2006. The increase was the
result of increased new retail financing, primarily in our Europe
and Diversified Services operating segments. Past dues over 30 days
at March 31, 2007, were 2.06 percent compared to 1.58 percent at
March 31, 2006, due primarily to the softening of the U.S. housing
industry. Write-offs, net of recoveries, were $15 million during
the quarter compared with $8 million for the first quarter of 2006.
Although these indicators reflect increasing trends over the prior
year, they are in line with management's expectations for 2007.
Caterpillar Inc. Vice President and Cat Financial President Kent M.
Adams said, "We have focused on executing well, and these results
demonstrate we are succeeding. The results reflect the strength of
Team Caterpillar in the diverse industries we support." For over 25
years, Cat Financial, a wholly owned subsidiary of Caterpillar
Inc., has been providing a wide range of financing alternatives to
customers and Caterpillar dealers for Caterpillar machinery and
engines, Solar(R) gas turbines and other equipment and marine
vessels. Cat Financial has offices and subsidiaries located
throughout the Americas, Asia, Australia, Latin America, and
Europe, with headquarters in Nashville, Tennessee. Statistical
Highlights: First Quarter 2007 Vs. First Quarter 2006 (Ending March
31) (Millions of dollars) 2007 2006 CHANGE Revenues $ 713 $ 657 9%
Net Profit $ 125 $ 118 6% New Retail Financing $ 2,744 $ 2,625 5%
Total Assets $26,961 $26,233 3% DATASOURCE: Caterpillar Financial
Services Corporation CONTACT: Rusty L. Dunn, Corporate Public
Affairs of Caterpillar Financial Services Corporation,
+1-309-675-4803, Web site: http://www.cat.com/
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