Cat Financial Services, the finance arm of
Q3 2014 profit after tax was $148 million, a $31 million, or 26% increase from the same period 2013.
The statement said the revenue increase was due mostly to a $37 million favourable impact from higher average earning assets.
Profit before income taxes was $197 million for the third quarter of 2014, compared with $164 million for the third quarter of 2013.
During Q3 2014, retail new business volume was $3.13 billion, a decrease of $38 million, or 1%, from the third quarter of 2013. The decrease was primarily related to lower volume in mining, partially offset by increases in Cat equipment sales in North America.
At the end of the third quarter of 2014, past dues (of loans) were 2.81 percent, compared with 2.77 percent at the end of the second quarter of 2014, 2.47 percent at the end of 2013 and 2.51 percent at the end of the third quarter of 2013. The increase reflects higher past dues in the Latin American, Asia/Pacific and European portfolios. Write-offs, net of recoveries, were $16 million for the third quarter of 2014, compared with $58 million for the third quarter of 2013.
As of September 30, 2014, Cat Financial's allowance for credit losses (estimation of unrecoverable debt) totalled $405 million or 1.37% of net finance receivables, compared with $412 million or 1.43% of net finance receivables as of September 30, 2013.
“Continued growth and strong yield performance in our earning asset base and the solid performance of our portfolio have resulted in another good quarter for Cat Financial,” said Kent Adams, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc.
Cat Financial Services announces third quarter 2014 results
Cat Financial Services, the finance arm of Caterpillar Inc., reported third-quarter 2014 revenues of US$743 million, an increase of $44 million, or 6%, compared with the third quarter of 2013.
