Cat Financial Announces First Quarter 2008 Results
18 April 2008 - 10:31PM
PR Newswire (US)
NASHVILLE, Tenn., April 18 /PRNewswire-FirstCall/ -- Caterpillar
Financial Services Corporation (Cat Financial) today reported
record first-quarter revenues of $779 million, an increase of $66
million, or 9 percent, compared with the first quarter of 2007.
First-quarter profit after tax was $124 million, a $1 million, or 1
percent, decrease over the first quarter of 2007. Of the increase
in revenues, $78 million resulted from the impact of continued
growth of finance receivables and operating leases (earning
assets), and $2 million resulted from the impact of higher interest
rates on new and existing finance receivables, offset by a net
decrease in various other net revenue items of $14 million. On a
pre-tax basis, profit was $183 million, up $1 million, or 1
percent, compared with the first quarter of 2007. The increase was
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),
offset by a $19 million increase in provision expense, a $14
million decrease in various other net revenue items and an $8
million increase in various other operating expenses. The increase
in margin principally resulted from the growth in average earning
assets over 2007 of $2.96 billion. New retail financing was a
record $3.47 billion, an increase of $730 million, or 27 percent,
from the first quarter of 2007. The increase was the result of
increased new retail financing primarily in our Asia-Pacific,
Diversified Services and Europe operating segments. Past dues over
30 days at March 31, 2008 were 2.81 percent compared to 2.06
percent at March 31, 2007. Write-offs, net of recoveries, at March
31, 2008 were $20 million compared to $15 million at March 31,
2007. Both of these increases were primarily due to the softening
of the U.S. housing industry. Caterpillar Inc. Vice President and
Cat Financial President Kent M. Adams said, "Cat Financial's
continued strong performance during a time of financial market
volatility underscores the effectiveness of the global diversity of
our portfolio, as well as robust credit underwriting, treasury and
portfolio management processes. Our top priority in 2008 is to be a
reliable source of financing for our customers and Caterpillar
dealers." For more than 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 2008 VS. FIRST
QUARTER 2007 (ENDING MARCH 31) (Millions of dollars) 2008 2007
CHANGE Revenues $ 779 $ 713 9% Profit Before Tax $ 183 $ 182 1%
Profit After Tax $ 124 $ 125 (1%) New Retail Financing $ 3,474 $
2,744 27% Total Assets $30,733 $26,961 14% SAFE HARBOR STATEMENT
UNDER THE SECURITIES LITIGATION REFORM ACT OF 1995 Certain
statements contained in this earnings release may be considered
"forward-looking statements" and involve risks and uncertainties
that could significantly impact results. In this context, words
such as "believes," "expects," "estimates," "anticipates," "will,"
"should" and similar words or phrases often identify
forward-looking statements made on behalf of Cat Financial. It is
important to note that actual results of the company may differ
materially from those described or implied in such forward-looking
statements based on a number of factors and uncertainties,
including, but not limited to changes in economic conditions;
currency exchange or interest rates; political stability; market
acceptance of the company's products and services; significant
changes in the competitive environment; changes in law, regulations
and tax rates; and other general economic, business and financing
conditions and factors described in more detail in the company's
Form 10-K filed with the Securities and Exchange Commission on
February 22, 2008. We do not undertake to update our
forward-looking statements. DATASOURCE: Caterpillar Inc. CONTACT:
Jim Dugan, Corporate Public Affairs of Caterpillar,
+1-309-494-4410, Mobile, +1-309-360-7311, Web site:
http://www.cat.com/
Copyright