NASHVILLE, Tenn., April 22, 2016 /PRNewswire/ -- Cat Financial
reported first-quarter 2016 revenues of $643
million, a decrease of $46
million, or 7 percent, compared with the first quarter of
2015. First-quarter 2016 profit was $100
million, a $33 million, or 25
percent, decrease from the first quarter of 2015.
The decrease in revenues was primarily due to a $23 million unfavorable impact from lower average
earning assets and a $13 million
unfavorable impact from lower average financing rates.
Profit before income taxes was $145
million for the first quarter of 2016, compared with
$187 million for the first quarter of
2015. The decrease was primarily due to a $17 million decrease in net yield on average
earning assets reflecting geographic mix changes and currency
impacts, an $11 million increase in
provision for credit losses and a $10
million unfavorable impact from lower average earning
assets.
The provision for income taxes reflects an estimated annual tax
rate of 30 percent in the first quarter of 2016, compared with 28
percent in the first quarter of 2015. The increase in the estimated
annual tax rate is primarily due to changes in the geographic mix
of profits.
During the first quarter of 2016, retail new business volume was
$2.29 billion, a decrease of
$173 million, or 7 percent, from the
first quarter of 2015. The decrease was primarily related to lower
volume in the mining and marine portfolios.
At the end of the first quarter of 2016, past dues were 2.78
percent, compared with 3.08 percent at the end of the first quarter
of 2015. Write-offs, net of recoveries, were $31 million for the first quarter of 2016,
compared with $12 million for the
first quarter of 2015. The increase in write-offs, net of
recoveries, was primarily driven by the Caterpillar Power Finance
and North American portfolios.
As of March 31, 2016, the
allowance for credit losses totaled $340
million, or 1.21 percent of net finance receivables,
compared with $392 million, or 1.38
percent of net finance receivables at March
31, 2015. The allowance for credit losses at year-end 2015
was $338 million, or 1.22 percent of
net finance receivables.
"Our portfolio has performed well overall despite ongoing
weakness in many of the key end markets we serve," 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 is focused on actively managing portfolio health and
continuing to serve Caterpillar customers and Cat dealers worldwide
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, Solar® 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:
|
|
FIRST-QUARTER 2016
VS. FIRST-QUARTER 2015
(ENDED MARCH
31)
(Millions of
dollars)
|
|
|
2016
|
|
2015
|
|
CHANGE
|
Revenues
|
$
|
643
|
|
$
|
689
|
|
(7)%
|
Profit Before Income
Taxes
|
$
|
145
|
|
$
|
187
|
|
(22)%
|
Profit
|
$
|
100
|
|
$
|
133
|
|
(25)%
|
Retail New Business
Volume
|
$
|
2,293
|
|
$
|
2,466
|
|
(7)%
|
Total
Assets
|
$
|
35,340
|
|
$
|
34,301
|
|
3%
|
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,
2015, 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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SOURCE Cat Financial