Latest News Release -
CAT

NASHVILLE, Tenn., Aug. 1, 2023 /PRNewswire/ -- Cat Financial reported second-quarter 2023 revenues of $793 million, an increase of $125 million, or 19%, compared with $668 million in the second quarter of 2022. Second-quarter 2023 profit was $150 million, an increase of $7 million, or 5%, compared with $143 million in the second quarter of 2022. The increase in revenues was primarily due to a $120 million favorable impact from higher average financing rates.

Second-quarter 2023 profit before income taxes was $205 million, an increase of $6 million, or 3%, compared with $199 million in the second quarter of 2022. The increase was mainly due to a $44 million favorable impact from a lower provision for credit losses and a $12 million increase in net yield on average earning assets, partially offset by unfavorable currency impacts of $27 million and an $18 million increase in general, operating and administrative expenses.

The provision for income taxes reflected an estimated annual tax rate of 26% for both the second quarter of 2023 and 2022.

During the second quarter of 2023, retail new business volume was $3.15 billion, an increase of $57 million, or 2%, compared with $3.10 billion in the second quarter of 2022. The increase was primarily driven by higher volume in Mining, partially offset by lower volume in EAME and Latin America.

At the end of the second quarter of 2023, past dues at Cat Financial were 2.15%, compared with 2.19% at the end of the second quarter of 2022. Write-offs, net of recoveries, were $8 million for the second quarter of 2023, compared with less than $1 million for the second quarter of 2022. As of June 30, 2023, Cat Financial's allowance for credit losses totaled $320 million, or 1.15% of finance receivables, compared with $348 million, or 1.27% of finance receivables at March 31, 2023. The allowance for credit losses at year-end 2022 was $346 million, or 1.29% of finance receivables.

"Cat Financial's second-quarter results reflected strong portfolio performance," said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. "The global Cat Financial team remains focused on executing our strategy and providing financial services solutions to Caterpillar customers and dealers worldwide."

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 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:

SECOND-QUARTER 2023 VS. SECOND-QUARTER 2022

(ENDED JUNE 30, EXCEPT TOTAL ASSETS)

(Millions of dollars)



2023


2022


CHANGE

Revenues

$ 793


$ 668


19 %

Profit Before Income Taxes

$ 205


$ 199


3 %

Profit (excluding profit attributable to noncontrolling interests)

$ 150


$ 143


5 %

Retail New Business Volume

$ 3,152


$ 3,095


2 %

Total Assets at June 30 and December 31, respectively

$ 33,022


$ 31,957


3 %



SIX-MONTHS 2023 VS. SIX-MONTHS 2022

(ENDED JUNE 30)

(Millions of dollars)



2023


2022


CHANGE

Revenues

$ 1,561


$ 1,320


18 %

Profit Before Income Taxes

$ 409


$ 392


4 %

Profit (excluding profit attributable to noncontrolling interests)

$ 299


$ 286


5 %

Retail New Business Volume

$ 5,616


$ 5,874


(4) %

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; (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.

Cision View original content:https://www.prnewswire.com/news-releases/cat-financial-announces-second-quarter-2023-results-301890158.html

SOURCE Cat Financial

Tags:
Investment Disclosure


The content provided on this website and in MineStockers episodes is for informational purposes only and should not be considered as an offer, solicitation, recommendation, or determination by MineStockers Inc. for the sale of any financial product or service or the suitability of an investment strategy for any investor.

Investors are advised to consult a financial professional to determine the appropriateness of an investment strategy based on their objectives, financial situation, investment horizon, and individual needs. This information is not intended to serve as financial, tax, legal, accounting, or other professional advice, as such advice should always be tailored to individual circumstances.

The products discussed herein are not insured by any government agency and carry risks, including the potential loss of the principal amount invested. Any information provided is based on both internal and external sources and should not be construed as an endorsement or conclusion regarding a company's financial prospects, resources, or management. Opinions expressed may change and should not be relied upon. It is crucial to seek personalized investment advice for your unique situation.

Natural resources investments are generally volatile, with higher headline risk than other sectors. They tend to be more sensitive to economic data, political and regulatory events, and underlying commodity prices. The prices of natural resources investments are influenced by factors such as the costs of underlying commodities like oil, gas, metals, and coal. These investments may trade on various exchanges and experience price fluctuations due to short-term demand, supply, and investment flows.

Natural resource investments often respond more sensitively to global events and economic data, including natural disasters, political turmoil, pandemics, or the release of employment data.

Investing in foreign markets may carry greater risks than domestic markets, including political, currency, economic, and market risks. It is essential to evaluate if trading in low-priced and international securities is appropriate for your circumstances and financial resources. Past performance does not guarantee future results.

MineStockers Inc., its affiliates, family, friends, employees, associates, and others may hold positions in the securities it covers. Some of the companies covered may be paying clients of the production.

No investment process is risk-free, and profitability is not guaranteed; investors may lose their entire investment. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Diversification does not ensure a profit or protect against loss. Investing in foreign securities involves risks not associated with domestic investments, such as currency fluctuations, political and economic instability, and differing accounting standards, potentially leading to greater share price volatility. The prices of small- and mid-cap company stocks generally experience higher volatility than large-company stocks and may involve higher risks. Smaller companies may lack the management expertise, financial resources, product diversification, and competitive strengths needed to withstand adverse economic conditions.

Studio



Toronto Ontario Canada

Phone


+1 (905) 967-2519