Cat Financial reported revenues of $2.69 billion for 2012, an increase of $48 million, or 2 percent, compared with 2011. Profit after tax was $432 million, a $54 million, or 14 percent, increase from 2011.
The increase in revenues was primarily due to a $223 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $139 million unfavorable impact from lower average financing rates on new and existing finance receivables and operating leases and a $33 million unfavorable impact from returned or repossessed equipment.
Profit before income taxes was $591 million for 2012, compared with $504 million for 2011. The increase was primarily because of an $89 million favorable impact from higher average earning assets, a $22 million favorable impact from mark-to-market adjustments that were recorded on interest rate derivative contracts and a $15 million decrease in the provision for credit losses. These increases in pre-tax profit were partially offset by a $33 million unfavorable impact from returned or repossessed equipment.
New retail financing for 2012 was $13.96 billion, an increase of $2.63 billion, or 23 percent, from 2011. The increase was a result of growth across all operating segments, with the largest increases occurring in our Europe and Caterpillar Power Finance, Asia/Pacific and Mining operating segments.
During 2012, Cat Financial’s overall portfolio quality reflected continued improvement. At the end of 2012, past dues were 2.26 percent compared with 2.80 percent at the end of the third quarter of 2012 and 2.89 percent at the end of 2011.
Cat Financial reported fourth-quarter 2012 revenues of $679 million, an increase of $17 million, or 3 percent, compared with the fourth quarter of 2011. Fourth-quarter profit after tax was $99 million, a $4 million, or 4 percent, increase from the fourth quarter of 2011.
The increase in revenues was primarily caused by an $80 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $52 million unfavorable impact from lower average financing rates on new and existing finance receivables and operating leases and a $12 million unfavorable impact from returned or repossessed equipment.
“We are very pleased with the growth in our new retail financing volume and the performance of our portfolio during 2012,” said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. “Past dues and write-offs also improved during the year, and are at the lowest levels since 2007. We continue to be well positioned to serve Caterpillar, Cat dealers, and our customers worldwide.”
Headquartered in Nashville, Tenn., Cat Financial, a wholly owned subsidiary of Caterpillar Inc., 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.