Cat Financial reported first-quarter revenues of $640 million, an increase of $9 million, or 1 percent, compared with the first quarter of 2010. First-quarter profit after tax was $83 million, a $30 million increase from the first quarter of 2010.
The increase in revenues was principally due to a $24 million favorable change from returned or repossessed equipment and a favorable impact from miscellaneous net revenue items.
These increases in revenues were partially offset by a $15 million unfavorable impact from lower earning assets (finance receivables and operating leases at constant interest rates) and a $14 million unfavorable impact from lower interest rates on new and existing finance receivables.
New retail financing was $2.8 billion, an increase of $947 million, or 52 percent, from the first quarter of 2010. The increase was primarily related to improvements in the company’s North America and Asia-Pacific operating segments.
At the end of the first quarter of 2011, past dues were 3.94 percent, which increased slightly from 3.87 percent at the end of 2010. The increase in past dues from year-end is primarily due to seasonality impacts. At the end of the first quarter of 2010, past dues were 6.06 percent. Write-offs, net of recoveries, were $41 million for the first quarter of 2011, down from $61 million in the fourth quarter of 2010 and $46 million in the first quarter of 2010.
"We are very pleased with the continuing improvements in Cat Financial's business," said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. "Our portfolio had the lowest quarterly net write-offs since 2008, and new retail financing increased for the fourth consecutive quarter. As business continues to improve, Cat Financial is better positioned than ever to support Caterpillar customers and dealers around the world.”
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.