NASHVILLE, Tenn., April 20 /CNW/ -- Caterpillar Financial Services
Corporation (Cat Financial) today reported record first-quarter revenues of
$713 million, an increase of $56 million, or 9 percent, compared with the same
quarter in 2006. First-quarter profit after tax was a record $125 million, a
$7 million, or 6 percent, increase over the first quarter of 2006.
Of the increase in revenues, $36 million resulted from the impact of
higher interest rates on new and existing finance receivables, $22 million
resulted from the impact of continued growth of finance receivables and
operating leases (earning assets) offset by a $2 million decrease in other
On a pre-tax basis, profit was up $9 million, or 5 percent, compared with
the first quarter of 2006. The increase was principally due to an increase of
$22 million in margin (wholesale, retail finance, operating lease and
associated fee revenues less interest expense and depreciation on assets
leased to others), offset by a $6 million increase in provision expense, a $5
million increase in operating expenses and a $2 million decrease in other
revenue items. Of the increase in margin, $13 million was due to an
improvement in net yield on average earning assets, and $9 million resulted
from the growth in average earning assets over 2006 of $919 million.
New retail financing was $2.74 billion, an increase of $119 million, or 5
percent, from the first quarter of 2006. The increase was the result of
increased new retail financing, primarily in our Europe and Diversified
Services operating segments.
Past dues over 30 days at March 31, 2007, were 2.06 percent compared to
1.58 percent at March 31, 2006, due primarily to the softening of the U.S.
housing industry. Write-offs, net of recoveries, were $15 million during the
quarter compared with $8 million for the first quarter of 2006. Although
these indicators reflect increasing trends over the prior year, they are in
line with management's expectations for 2007.
Caterpillar Inc. Vice President and Cat Financial President Kent M. Adams
said, "We have focused on executing well, and these results demonstrate we are
succeeding. The results reflect the strength of Team Caterpillar in the
diverse industries we support."
For over 25 years, Cat Financial, a wholly owned subsidiary of
Caterpillar Inc., has been providing a wide range of financing alternatives to
customers and Caterpillar dealers for Caterpillar machinery and engines,
Solar(R) gas turbines and other equipment and marine vessels. Cat Financial
has offices and subsidiaries located throughout the Americas, Asia, Australia,
Latin America, and Europe, with headquarters in Nashville, Tennessee.
First Quarter 2007 Vs. First Quarter 2006
(Ending March 31)
(Millions of dollars)
2007 2006 CHANGE
Revenues $ 713 $ 657 9%
Net Profit $ 125 $ 118 6%
New Retail Financing $ 2,744 $ 2,625 5%
Total Assets $26,961 $26,233 3%
For further information:
For further information: Rusty L. Dunn, Corporate Public Affairs of
Caterpillar Financial Services Corporation, +1-309-675-4803,
Dunn_Rusty_L@CAT.com Web Site: http://www.CAT.com/