Cat Financial Announces Second-Quarter 2024 Results
Cat Financial reported second-quarter 2024 revenues of $865 million, a 9% increase from Q2 2023. However, the company recorded a loss of $65 million, down 143% from the previous year's profit. This was primarily due to a $210 million loss on divestiture of a non-U.S. entity. Excluding this, profit before income taxes was $192 million, a 6% decrease. Retail new business volume increased by 8% to $3.41 billion. Past dues improved to 1.74% from 2.15% in Q2 2023. The allowance for credit losses decreased to 0.89% of finance receivables, down from 1.18% at year-end 2023. Despite challenges, Cat Financial maintains strong business activity and portfolio performance.
Cat Financial ha riportato ricavi nel secondo trimestre 2024 di 865 milioni di dollari, con un aumento del 9% rispetto al Q2 2023. Tuttavia, l'azienda ha registrato una perdita di 65 milioni di dollari, in calo del 143% rispetto all'utile dell'anno precedente. Questo è stato principalmente dovuto a una perdita di 210 milioni di dollari per la dismissione di una entità non statunitense. Escludendo questo, l'utile prima delle imposte sul reddito è stato di 192 milioni di dollari, con una diminuzione del 6%. Il volume del nuovo business al dettaglio è aumentato dell'8% a 3,41 miliardi di dollari. I ritardi nei pagamenti sono migliorati all'1,74% rispetto al 2,15% nel Q2 2023. Il fondo per le perdite su crediti è diminuito allo 0,89% dei crediti finanziari, rispetto all'1,18% a fine anno 2023. Nonostante le sfide, Cat Financial mantiene una forte attività commerciale e una buona performance del portafoglio.
Cat Financial informó sobre ingresos del segundo trimestre de 2024 de 865 millones de dólares, un aumento del 9% en comparación con el Q2 de 2023. Sin embargo, la empresa registró una pérdida de 65 millones de dólares, una disminución del 143% con respecto a las ganancias del año anterior. Esto se debió principalmente a una pérdida de 210 millones de dólares por la desinversión de una entidad no estadounidense. Excluyendo esto, la ganancia antes de impuestos fue de 192 millones de dólares, una disminución del 6%. El volumen de nuevos negocios al por menor aumentó un 8% alcanzando los 3.41 mil millones de dólares. Los pagos atrasados mejoraron al 1.74% desde el 2.15% en el Q2 de 2023. La reserva para pérdidas de crédito disminuyó al 0.89% de los préstamos financieros, bajando del 1.18% a finales de 2023. A pesar de los desafíos, Cat Financial mantiene una sólida actividad comercial y un buen rendimiento de la cartera.
Cat Financial은 2024년 2분기 수익이 8억 6500만 달러로 2023년 2분기 대비 9% 증가했다고 보고했습니다. 그러나 회사는 6500만 달러의 손실을 기록했으며, 이는 작년의 이익보다 143% 감소한 수치입니다. 이는 주로 비 미국 법인 매각으로 인한 2억 1000만 달러의 손실 때문입니다. 이를 제외하면, 세전 이익은 1억 9200만 달러로 6% 감소했습니다. 소매 신규 사업 규모는 8% 증가하여 34억 1000만 달러에 달했습니다. 연체율은 2.15%에서 1.74%로 개선되었습니다. 신용 손실 준비금은 금융 대출의 0.89%로 감소하여 2023년 말 1.18%에서 하락했습니다. 어려움에도 불구하고, Cat Financial은 강력한 사업 활동과 포트폴리오 성과를 유지하고 있습니다.
Cat Financial a rapporté des revenus de 865 millions de dollars au deuxième trimestre 2024, soit une augmentation de 9 % par rapport au Q2 2023. Toutefois, l'entreprise a enregistré une perte de 65 millions de dollars, soit une baisse de 143 % par rapport aux bénéfices de l'année précédente. Cela était principalement dû à une perte de 210 millions de dollars liée à la cession d'une entité non américaine. En excluant cela, le bénéfice avant impôts était de 192 millions de dollars, soit une diminution de 6 %. Le volume de nouveaux affaires de détail a augmenté de 8 % pour atteindre 3,41 milliards de dollars. Les créances en souffrance se sont améliorées à 1,74 %, contre 2,15 % au Q2 2023. La provision pour pertes sur créances a diminué à 0,89 % des créances financières, contre 1,18 % à la fin de 2023. Malgré les défis, Cat Financial maintient une forte activité commerciale et une bonne performance de portefeuille.
Cat Financial berichtete von Umsätzen im zweiten Quartal 2024 in Höhe von 865 Millionen Dollar, was einem Anstieg von 9% im Vergleich zum Q2 2023 entspricht. Allerdings verzeichnete das Unternehmen einen Verlust von 65 Millionen Dollar, was einen Rückgang von 143% gegenüber dem Gewinn des Vorjahres darstellt. Dies war hauptsächlich aufgrund eines Verlusts von 210 Millionen Dollar aus der Veräußertung einer nicht-US-amerikanischen Einheit. Ohne diesen Verlust betrug der Gewinn vor Steuer 192 Millionen Dollar, ein Rückgang um 6%. Das Neugeschäft im Einzelhandel stieg um 8% auf 3,41 Milliarden Dollar. Die Rückstände verbesserten sich auf 1,74% von 2,15% im Q2 2023. Die Rückstellung für Kreditverluste sank auf 0,89% der Finanzforderungen, von 1,18% zum Jahresende 2023. Trotz der Herausforderungen hält Cat Financial eine starke Geschäftstätigkeit und Portfolioleistung aufrecht.
- Revenues increased by 9% to $865 million in Q2 2024
- Retail new business volume grew by 8% to $3.41 billion
- Past dues improved to 1.74% from 2.15% in Q2 2023
- Allowance for credit losses decreased to 0.89% of finance receivables from 1.18% at year-end 2023
- Reported a loss of $65 million, down 143% from Q2 2023 profit
- $210 million loss on divestiture of a non-U.S. entity
- Profit before income taxes (excluding divestiture loss) decreased by 6% to $192 million
- Write-offs increased to $18 million from $8 million in Q2 2023
Insights
Cat Financial's Q2 2024 results present a mixed picture. While revenues increased by
The retail new business volume grew by
Cat Financial's performance reflects broader trends in the construction and mining equipment sectors. The increase in average financing rates contributed
However, the higher provision for credit losses and increased write-offs may signal growing economic uncertainties. The divestiture of a non-U.S. entity could be part of a strategic realignment, possibly in response to changing global market conditions. The improved past dues ratio and reduced allowance for credit losses as a percentage of finance receivables indicate overall portfolio health, which is important given potential economic headwinds.
The tax situation for Cat Financial in Q2 2024 is complex and unfavorable. Despite reporting a loss before income taxes of
This situation highlights the complexities of international tax law and the potential tax implications of corporate restructuring. The effective tax rate for Q2 2024 was significantly impacted, demonstrating how non-recurring events can distort a company's tax profile. Investors should be aware that this tax anomaly is likely a one-time event and not indicative of the company's ongoing tax obligations.
Second-quarter 2024 loss before income taxes was
The provision for income taxes for the second quarter of 2024 was
During the second quarter of 2024, retail new business volume was
At the end of the second quarter of 2024, past dues were
"Our business activity remains strong, and our global portfolio continues to perform well," said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. "The Cat Financial team continues to focus on execution of our strategy and supporting Caterpillar customers and dealers with financial services solutions."
About Cat Financial
Cat Financial is a subsidiary of Caterpillar, the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Cat Financial provides a wide range of financing solutions to customers and Cat® dealers for machines, engines, Solar® turbines, genuine Cat parts and services. Headquartered in
STATISTICAL HIGHLIGHTS:
SECOND-QUARTER 2024 VS. SECOND-QUARTER 2023 (ENDED JUNE 30, EXCEPT TOTAL ASSETS) (Millions of dollars) | |||||
2024 | 2023 | CHANGE | |||
Revenues | $ 865 | $ 793 | 9 % | ||
Profit (Loss) Before Income Taxes | $ (18) | $ 205 | (109) % | ||
Profit (Loss) (excluding profit attributable to noncontrolling interests) | $ (65) | $ 150 | (143) % | ||
Retail New Business Volume | $ 3,412 | $ 3,152 | 8 % | ||
Total Assets at June 30 and December 31, respectively | $ 33,506 | $ 33,112 | 1 % | ||
SIX MONTHS 2024 VS. SIX MONTHS 2023 (ENDED JUNE 30) (Millions of dollars) | |||||
2024 | 2023 | CHANGE | |||
Revenues | $ 1,718 | $ 1,561 | 10 % | ||
Profit (Loss) Before Income Taxes | $ 211 | $ 409 | (48) % | ||
Profit (Loss) (excluding profit attributable to noncontrolling interests) | $ 104 | $ 299 | (65) % | ||
Retail New Business Volume | $ 6,154 | $ 5,616 | 10 % | ||
FORWARD-LOOKING STATEMENTS
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Cat Financial's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers ; (ii) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (iii) changes in interest rates, currency fluctuations or market liquidity conditions; (iv) an increase in delinquencies, repossessions or net losses of our customers; (v) residual values of leased equipment; (vi) our compliance with financial and other restrictive covenants in debt agreements; (vii) government monetary or fiscal policies; (viii) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (ix) demand for Caterpillar products; (x) marketing, operational or administrative support received from Caterpillar; (xi) our ability to develop, produce and market quality products that meet our customers' needs; (xii) information technology security threats and computer crime; (xiii) alleged or actual violations of trade or anti-corruption laws and regulations; (xiv) new regulations or changes in financial services regulations; (xv) additional tax expense or exposure; (xvi) changes in accounting guidance; (xvii) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xviii) other factors described in more detail in Cat Financial's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
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SOURCE Cat Financial
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