NASHVILLE, Tenn., Jan. 28, 2016 /CNW/ -- Cat Financial reported
revenues of $2.67 billion for 2015, a
decrease of $212 million, or 7
percent, compared with 2014. Profit after tax was $460 million, a $75
million, or 14 percent, decrease from 2014.
The decrease in revenues was primarily due to a $117 million unfavorable impact from lower
average earning assets and an $80
million unfavorable impact from lower average financing
rates.
Profit before income taxes was $619
million for 2015, compared with $753
million for 2014. The decrease was primarily due to a
$68 million decrease in net yield on
average earning assets reflecting geographic mix changes and
currency impacts and a $55 million
unfavorable impact from lower average earning assets.
The provision for income taxes reflects an annual tax rate of 26
percent for 2015, compared with 28 percent for 2014. The decrease
in the annual tax rate is primarily due to foreign tax credits and
changes in the geographic mix of profits.
Retail new business volume for 2015 was $11.42 billion, a decrease of $1.26 billion, or 10 percent, from 2014. The
decrease was primarily related to lower volume across most regions,
partially offset by an increase in North
America.
At the end of 2015, past dues were 2.14 percent, compared with
2.17 percent at the end of 2014. Write-offs, net of recoveries,
were $155 million for 2015, compared
with $99 million for 2014. The
increase in write-offs, net of recoveries, was primarily driven by
the mining and marine portfolios.
As of December 31, 2015, Cat
Financial's allowance for credit losses totaled $338 million or 1.22 percent of net finance
receivables, compared with $401
million or 1.36 percent of net finance receivables at
year-end 2014.
Fourth-Quarter 2015 vs. Fourth-Quarter 2014
Cat Financial reported fourth-quarter 2015 revenues of
$648 million, a decrease of
$55 million, or 8 percent, compared
with the fourth quarter of 2014. Fourth-quarter 2015 profit after
tax was $114 million, a $6 million, or 6 percent, increase from the
fourth quarter of 2014.
The decrease in revenues was primarily due to a $36 million unfavorable impact from lower average
earning assets and an $11 million
unfavorable impact from lower average financing rates.
Profit before income taxes was $129
million for the fourth quarter of 2015, compared with
$166 million for the fourth quarter
of 2014. The decrease was primarily due to a $17 million unfavorable impact from lower average
earning assets, a $12 million impact
from employee separation charges, a $10
million decrease in net yield on average earning assets
reflecting geographic mix changes and currency impacts and a
$10 million unfavorable impact from
returned or repossessed equipment. These decreases were offset by a
$12 million favorable impact from
general, operating and administrative expenses primarily due to
lower incentive compensation expense.
The provision for income taxes reflects an annual tax rate of 26
percent in the fourth quarter of 2015, compared with 28 percent in
the fourth quarter of 2014. The decrease in the annual tax rate is
primarily due to foreign tax credits and changes in the geographic
mix of profits.
During the fourth quarter of 2015, retail new business volume
was $3.36 billion, an increase of
$50 million, or 2 percent, from the
fourth quarter of 2014. The increase was primarily related to an
increase in volume in North
America.
"Our focus has remained on maintaining solid portfolio
performance at Caterpillar Financial during the current period of
weakness in some of the key end markets we serve. Our past due
results at year-end were excellent and demonstrate our continued
success in achieving this objective," said Kent Adams, president of Cat Financial and vice
president with responsibility for the Financial Products Division
of Caterpillar Inc. "The global Cat Financial team remains focused
on helping Caterpillar customers and Cat dealers succeed through
financial services excellence."
For over 30 years, Cat Financial, a wholly owned subsidiary of
Caterpillar Inc., has been providing financial service excellence
to customers. The company offers a wide range of financing
alternatives to customers and Cat dealers for Cat machinery and
engines, SolarĀ® gas turbines and other equipment and marine
vessels. Cat Financial has offices and subsidiaries located
throughout North and South
America, Asia, Australia and Europe, with its headquarters in Nashville, Tennessee.
STATISTICAL HIGHLIGHTS:
FOURTH-QUARTER
2015 VS. FOURTH-QUARTER 2014
(ENDED DECEMBER
31)
(Millions of
dollars)
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
CHANGE
|
Revenues
|
$
|
648
|
|
$
|
703
|
|
(8)%
|
Profit Before Income
Taxes
|
$
|
129
|
|
$
|
166
|
|
(22)%
|
Profit After
Tax
|
$
|
114
|
|
$
|
108
|
|
6%
|
Retail New Business
Volume
|
$
|
3,358
|
|
$
|
3,308
|
|
2%
|
Total
Assets
|
$
|
33,903
|
|
$
|
35,176
|
|
(4)%
|
|
|
FULL-YEAR 2015 VS.
FULL-YEAR 2014
(ENDED DECEMBER
31)
(Millions of
dollars)
|
|
|
2015
|
|
2014
|
|
CHANGE
|
Revenues
|
$
|
2,673
|
|
$
|
2,885
|
|
(7)%
|
Profit Before Income
Taxes
|
$
|
619
|
|
$
|
753
|
|
(18)%
|
Profit After
Tax
|
$
|
460
|
|
$
|
535
|
|
(14)%
|
Retail New Business
Volume
|
$
|
11,419
|
|
$
|
12,676
|
|
(10)%
|
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements contained in this earnings release may be
considered "forward-looking statements" as that term is defined in
the Private Securities Litigation Reform Act of 1995. These
statements may relate to future events or our future financial
performance, which may involve known and unknown risks and
uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievement to be materially
different from those expressed or implied by any forward-looking
statements. From time to time, we may also provide forward-looking
statements in oral presentations to the public or in other
materials we issue to the public. Forward-looking statements give
current expectations or forecasts of future events about the
company. You may identify these statements by the fact that they do
not relate to historical or current facts and may use words such as
"believes," "expects," "estimates," "anticipates," "will,"
"should," "plan," "project," "intend," "could" and similar words or
phrases. These statements are only predictions. Actual events or
results may differ materially due to factors that affect
international businesses, including changes in economic conditions
and disruptions in the global financial and credit markets, and
changes in laws and regulations and political stability, as well as
factors specific to Cat Financial and the markets we serve,
including the market's acceptance of our products and services, the
creditworthiness of our customers, interest rate and currency rate
fluctuations and estimated residual values of leased equipment.
These risk factors may not be exhaustive. We operate in a
continually changing business environment, and new risk factors
emerge from time to time. We cannot predict these new risk factors,
nor can we assess the impact, if any, of these new risk factors on
our businesses or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
projected in any forward-looking statements. Accordingly,
forward-looking statements should not be relied upon as a
prediction of actual results. Moreover, we do not assume
responsibility for the accuracy and completeness of those
statements. All of the forward-looking statements are qualified in
their entirety by reference to the factors discussed under the
captions "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in our annual
report on Form 10-K for the fiscal year ended December 31,
2014 and similar sections in our quarterly reports on Form 10-Q,
that describe risks and factors that could cause results to differ
materially from those projected in the forward-looking statements.
Cat Financial undertakes no obligation to publicly update
forward-looking statements, whether as a result of new information,
future events or otherwise.
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visit:http://www.prnewswire.com/news-releases/cat-financial-announces-2015-year-end-results-300210808.html
SOURCE Cat Financial