NASHVILLE, Tenn., Feb. 5, 2024 /PRNewswire/ --
Full-Year 2023 vs. Full-Year 2022
Cat Financial reported revenues of $3.25
billion for 2023, an increase of $514
million, or 19%, compared with $2.73
billion for 2022. The increase in revenues was primarily due
to a $450 million favorable impact
from higher average financing rates. Profit was $563 million for 2023, an increase of
$28 million, or 5%, compared with
$535 million for 2022.
Profit before income taxes was $760
million for 2023, an increase of $29
million, or 4%, compared with $731
million for 2022. The increase was primarily due to a
$56 million increase in net yield on
average earning assets and a $32
million favorable impact from a lower provision for credit
losses, partially offset by a $57
million increase in general, operating and administrative
(GO&A) expenses.
The provision for income taxes reflected an annual tax rate of
25% for 2023 compared with 26% for 2022. The provision for income
taxes in 2023 included a non-cash benefit of $22 million from a reduction in the valuation
allowance against the deferred tax assets of a non-U.S. subsidiary,
and a tax charge of $27 million for
the repatriation of earnings and change in the reinvestment
position of a non-U.S. subsidiary.
During 2023, retail new business volume was $12.11 billion, an increase of $750 million, or 7%, compared with $11.36 billion for 2022. The increase was
primarily driven by higher volume in North America.
At the end of 2023, past dues were 1.79%, compared with 1.89% at
the end of 2022. Write-offs, net of recoveries, were $65 million for 2023, compared with $46 million for 2022. As of December 31, 2023, the allowance for credit
losses totaled $331 million, or 1.18%
of finance receivables, compared with $346
million, or 1.29% of finance receivables at December 31, 2022.
Fourth-Quarter 2023 vs. Fourth-Quarter 2022
Cat Financial reported fourth-quarter 2023 revenues of
$841 million, an increase of
$117 million, or 16%, compared with
$724 million in the fourth quarter of
2022. The increase in revenues was primarily due to an $89 million favorable impact from higher average
financing rates and a $31 million
favorable impact from higher average earning assets. Fourth-quarter
2023 profit was $166 million, an
increase of $48 million, or 41%,
compared with $118 million in the
fourth quarter of 2022.
Fourth-quarter 2023 profit before income taxes was $181 million, an increase of $30 million, or 20%, compared with $151 million in the fourth quarter of 2022. The
increase was mainly due to a $21
million favorable impact from a lower provision for credit
losses, a $14 million favorable
impact from higher average earning assets and a $12 million increase in net yield on average
earning assets. These favorable impacts were partially offset by a
$20 million increase in GO&A
expenses.
During the fourth quarter of 2023, retail new business volume
was $3.60 billion, an increase of
$839 million, or 30%, compared with
$2.76 billion in the fourth quarter
of 2022. The increase was primarily driven by higher volume in
North America.
"We are very pleased with the strong performance of our business
and health of our global portfolio during 2023," said Dave Walton, President of Cat Financial and
Senior Vice President with responsibility for the Financial
Products Division of Caterpillar Inc. "The global Cat Financial
team remains committed to executing our strategy and providing
financial services solutions to Caterpillar customers and dealers
worldwide."
About Cat Financial
Cat Financial is a subsidiary of Caterpillar, the world's
leading manufacturer of construction and mining equipment, diesel
and natural gas engines, industrial gas turbines, and
diesel-electric locomotives. Cat Financial provides a wide range of
financing solutions to customers and Cat® dealers for
machines, engines, Solar® turbines, genuine Cat parts and
services. Headquartered in Nashville, Tennessee, Cat Financial serves
customers globally with offices and subsidiaries located throughout
North and South America,
Asia, Australia, Europe and Africa. Visit cat.com to learn more about Cat
Financial.
STATISTICAL HIGHLIGHTS:
FULL-YEAR 2023 VS.
FULL-YEAR 2022
(ENDED DECEMBER
31)
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
CHANGE
|
Revenues
|
$
|
3,248
|
|
$
|
2,734
|
|
19 %
|
Profit Before Income
Taxes
|
$
|
760
|
|
$
|
731
|
|
4 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
563
|
|
$
|
535
|
|
5 %
|
Retail New Business
Volume
|
$
|
12,105
|
|
$
|
11,355
|
|
7 %
|
Total Assets
|
$
|
33,112
|
|
$
|
31,957
|
|
4 %
|
|
FOURTH-QUARTER 2023
VS. FOURTH-QUARTER 2022
(ENDED DECEMBER
31)
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
CHANGE
|
Revenues
|
$
|
841
|
|
$
|
724
|
|
16 %
|
Profit Before Income
Taxes
|
$
|
181
|
|
$
|
151
|
|
20 %
|
Profit (excluding
profit attributable to noncontrolling interests)
|
$
|
166
|
|
$
|
118
|
|
41 %
|
Retail New Business
Volume
|
$
|
3,595
|
|
$
|
2,756
|
|
30 %
|
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements in this press release relate to future events
and expectations and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "believe," "estimate," "will be," "will," "would,"
"expect," "anticipate," "plan," "project," "intend," "could,"
"should" or other similar words or expressions often identify
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements, including, without
limitation, statements regarding our outlook, projections,
forecasts or trend descriptions. These statements do not guarantee
future performance and speak only as of the date they are made, and
we do not undertake to update our forward-looking statements.
Cat Financial's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) disruptions
or volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers
; (ii) failure to maintain our credit ratings and potential
resulting increases to our cost of borrowing and adverse effects on
our cost of funds, liquidity, competitive position and access to
capital markets; (iii) changes in interest rates, currency
fluctuations or market liquidity conditions; (iv) an increase in
delinquencies, repossessions or net losses of our customers; (v)
residual values of leased equipment; (vi) our compliance with
financial and other restrictive covenants in debt agreements; (vii)
government monetary or fiscal policies; (viii) political and
economic risks, commercial instability and events beyond our
control in the countries in which we operate; (ix) demand for
Caterpillar products; (x) marketing, operational or administrative
support received from Caterpillar; (xi) our ability to develop,
produce and market quality products that meet our customers' needs;
(xii) information technology security threats and computer crime;
(xiii) alleged or actual violations of trade or
anti-corruption laws and regulations; (xiv) new regulations or
changes in financial services regulations; (xv) additional tax
expense or exposure; (xvi) changes in accounting guidance; (xvii)
catastrophic events, including global pandemics such as the
COVID-19 pandemic; and (xviii) other factors described in more
detail in Cat Financial's Forms 10-Q, 10-K and other filings with
the Securities and Exchange Commission.
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SOURCE Cat Financial