Cat Financial reported revenues of $2.65 billion, an increase of $93 million, or 4 percent, compared with 2010. Profit after tax was $378 million, a $100 million, or 36-percent increase from 2010.
The increase in revenues was principally due to a $76 million favorable impact from higher average earning assets, a $54 million favorable impact from miscellaneous net revenue items and a $49 million favorable change from returned or repossessed equipment. These increases in revenue were partially offset by an $86 million unfavorable impact from lower interest rates on new and existing finance receivables.
Profit before income taxes was $504 million for 2011, compared to $329 million for 2010.
New retail financing was $11.32 billion, an increase of $1.9 billion, or 20 percent, from 2010. The increase was primarily related to improvements in the company’s Asia/Pacific and Mining and North America operating segments.
During 2011, Cat Financial’s overall portfolio quality reflected continued improvement. At the end of 2011, past dues were 2.89 percent, down from 3.54 percent at the end of the third quarter of 2011 and 3.87 percent at the end of 2010.
Cat Financial reported fourth-quarter 2011 revenues of $662 million, an increase of $29 million, or 5 percent, compared with the fourth quarter of 2010. Fourth-quarter profit after tax was $95 million, a $25 million, or 36-percent increase from the fourth quarter of 2010. Profit before income taxes was $111 million for the fourth quarter of 2011, compared to $74 million for the fourth quarter of 2010.
New retail financing in the fourth quarter of 2011 was $3.0 billion, an increase of $306 million, or 11 percent, from the fourth quarter of 2010. The increase was primarily a result of improvements in Caterpillar’s Asia/Pacific and Mining operating segment.
“We are very pleased with the excellent improvement in Cat Financial's results in 2011,” said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. “In addition to increased profitability, new retail financing is up 20 percent from 2010 and portfolio performance has significantly improved, with past dues and full-year write-offs at their lowest levels since 2008.”
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. Cat Financial has offices and subsidiaries located throughout the Americas, Asia, Australia and Europe, with headquarters in Nashville, Tenn.
