Cat Financial Announces Third-Quarter 2022 Results
Cat Financial reported Q3 2022 revenues of $690 million, a 9% increase from $634 million in Q3 2021. Profit rose 30% to $131 million from $101 million year-over-year due to higher financing rates. Profit before income taxes surged 44% to $188 million, influenced by a $75 million reduction in credit loss provisions. However, retail new business volume fell 18% to $2.73 billion. Past dues decreased to 2.00% from 2.41% a year ago, indicating improved portfolio performance.
- Revenue increased by $56 million, or 9%, year-over-year.
- Profit rose by $30 million, or 30%, compared to Q3 2021.
- Profit before income taxes increased by $57 million, or 44%.
- Retail new business volume decreased by $617 million, or 18%, from Q3 2021.
NASHVILLE, Tenn., Oct. 27, 2022 /PRNewswire/ -- Cat Financial reported third-quarter 2022 revenues of
Third-quarter 2022 profit before income taxes was
The provision for income taxes reflected an estimated annual tax rate of
During the third quarter of 2022, retail new business volume was
At the end of the third quarter of 2022, past dues were
"The Cat Financial team delivered another quarter of strong results. Our portfolio continues to perform well with historically low past dues," said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. "Our team remains focused on providing financial services solutions to Caterpillar customers and dealers worldwide."
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. For more than 40 years, Cat Financial has provided a wide range of financing solutions to customers and Cat® dealers for machines, engines, Solar® gas turbines, genuine Cat parts and services. Headquartered in Nashville, Tennessee, Cat Financial serves customers globally with offices and subsidiaries located throughout North and South America, Asia, Australia, Europe and Africa. Visit cat.com to learn more about Cat Financial.
STATISTICAL HIGHLIGHTS:
THIRD-QUARTER 2022 VS. THIRD-QUARTER 2021 (ENDED SEPTEMBER 30, EXCEPT TOTAL ASSETS) (Millions of dollars) | |||||
2022 | 2021 | CHANGE | |||
Revenues | $ 690 | $ 634 | 9 % | ||
Profit Before Income Taxes | $ 188 | $ 131 | 44 % | ||
Profit (excluding profit attributable to noncontrolling interests) | $ 131 | $ 101 | 30 % | ||
Retail New Business Volume | $ 2,725 | $ 3,342 | (18) % | ||
Total Assets at September 30 and December 31, respectively | $ 31,483 | $ 32,387 | (3) % | ||
NINE-MONTHS 2022 VS. NINE-MONTHS 2021 (ENDED SEPTEMBER 30) (Millions of dollars) | |||||
2022 | 2021 | CHANGE | |||
Revenues | $ 2,010 | $ 1,919 | 5 % | ||
Profit Before Income Taxes | $ 580 | $ 516 | 12 % | ||
Profit (excluding profit attributable to noncontrolling interests) | $ 417 | $ 383 | 9 % | ||
Retail New Business Volume | $ 8,599 | $ 9,675 | (11) % | ||
CAUTIONARY STATEMENT REGARDING 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) the ongoing global coronavirus 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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