Cat Financial Announces Second Quarter 2008 Results

    NASHVILLE, Tenn., July 22 /CNW/ -- Caterpillar Financial Services
Corporation (Cat Financial) today reported record second-quarter revenues of
$785 million, an increase of $38 million, or 5 percent, compared with the
second quarter of 2007. Second-quarter profit after tax was $130 million, a $7
million, or 6 percent, increase over the second quarter of 2007.
    Of the increase in revenues, $101 million resulted from the impact of
continued growth of earning assets (finance receivables and operating leases
at constant interest rates), and $7 million resulted from a net increase in
various other net revenue items, including $12 million related to gains on the
sales of receivables.  These increases were offset by a $70 million decrease
from the impact of lower interest rates on new and existing finance
    On a pre-tax basis, profit was $176 million, down $11 million, or 6
percent, compared with the second quarter of 2007.  The decrease was
principally due to higher provision expense of $21 million and an $11 million
increase in general, operating and administrative expense, offset by an
increase of $15 million in margin (wholesale, retail finance, operating lease
and associated fee revenues less interest expense and depreciation on assets
leased to others) and a $7 million net increase in various other net revenue
items, including $12 million related to gains on the sales of receivables. The
increase in margin principally resulted from the growth in average earning
assets over 2007 of $3.72 billion.
    Provision for income taxes decreased $18 million, or 28 percent, compared
with the second quarter of 2007. The decrease was primarily attributable to
favorable changes in the geographic mix of pre-tax profits.
    New retail financing was a record $4.60 billion, an increase of $944
million, or 26 percent, from the second quarter of 2007.  The increase was the
result of increased new retail financing primarily in our Asia-Pacific,
Diversified Services and Europe operating segments.
    Past dues over 30 days at June 30, 2008 were 3.35 percent compared to
2.09 percent at June 30, 2007.  Write-offs, net of recoveries, were $19
million for the second quarter of 2008 compared to $12 million for the second
quarter of 2007.  Both of these increases were primarily due to the continued
softening of the U.S. housing industry.
    Caterpillar Inc. Vice President and Cat Financial President Kent M. Adams
said, "Cat Financial's record new business and strong profit combined with our
diversified funding platform continues to demonstrate our ability to deliver
reliable earnings.  Although past dues are up from last year, our portfolio
continues to perform very well with write-offs as a percentage of the retail
portfolio in-line with the five-year historical average.  During this time of
economic uncertainty in key markets, we continue to work to be a reliable
source of financing for Caterpillar customers and dealers."
    For more than 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.


                 SECOND QUARTER 2008 VS. SECOND QUARTER 2007
                               (ENDING JUNE 30)
                            (Millions of dollars)

                                           2008          2007         CHANGE

    Revenues                               $785          $747            5%
    Profit Before Tax                      $176          $187           (6%)
    Profit After Tax                       $130          $123            6%
    New Retail Financing                 $4,597        $3,653           26%
    Total Assets                        $32,413       $27,616           17%

                     SIX MONTHS 2008 VS. SIX MONTHS 2007
                               (ENDING JUNE 30)
                            (Millions of dollars)

                                           2008          2007         CHANGE

    Revenues                             $1,564        $1,460            7%
    Profit Before Tax                      $359          $369           (3%)
    Profit After Tax                       $254          $248            2%
    New Retail Financing                 $8,071        $6,397           26%
    Certain statements contained in this earnings release may be considered
"forward-looking statements" and involve risks and uncertainties that could
significantly impact results.  In this context, words such as "believes,"
"expects," "estimates," "anticipates," "will," "should" and similar words or
phrases often identify forward-looking statements made on behalf of Cat
Financial. It is important to note that actual results of the company may
differ materially from those described or implied in such forward-looking
statements based on a number of factors and uncertainties, including, but not
limited to changes in economic conditions; currency exchange or interest
rates; political stability; market acceptance of the company's products and
services; significant changes in the competitive environment; changes in law,
regulations and tax rates; and other general economic, business and financing
conditions and factors described in more detail in the company's Form 10-K
filed with the Securities and Exchange Commission on February 22, 2008.  We do
not undertake to update our forward-looking statements.

For further information:

For further information: Jim Dugan, Corporate Public Affairs of
Caterpillar Inc., +1-309-494-4100, cell, +1-309-360-7311,
Web Site:

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