Cat Financial Announces Second-Quarter 2021 Results

NASHVILLE, Tenn., July 30, 2021 / PRNewswire / – Cat Financial reported revenue of $ 646 million, An increase from $ 5 million, or 1% compared to the second quarter of 2020. The profit for the second quarter of 2021 was $ 142 million, An increase from $ 83 million, or 141% compared to Q2 2020.

The increase in sales is mainly due to a $ 17 million beneficial effects of returned or repossessed equipment and a $ 7 million positive effect through higher average earning power, partially offset by a $ 18 million adverse effects from lower average funding rates.

Income before income taxes for the second quarter of 2021 was $ 189 million, An increase from $ 100 million, or 112% compared to the second quarter of 2020. The increase is mainly due to a $ 75 million Decline in loan loss provisions, a $ 25 million Increase in the net return on average working capital and a $ 17 million positive effects of returned or repossessed devices. These beneficial effects were partly due to a $ 31 million Increase in general, operational and administrative expenses, mainly due to higher expenses for short-term performance compensation.

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The income tax provision reflects an estimated annual tax rate of 25% in the second quarter of 2021, compared to 27% in the second quarter of 2020.

In the second quarter of 2021, the volume of new business in retail was around $ 3.52 billion, An increase from $ 786 million, or 29%, from the second quarter of 2020. The increase was mainly driven by the higher volume in North America, EAME and Mining, partially offset by a decline in Caterpillar Power Finance.

At the end of the second quarter of 2021, back payments were 2.58% compared to 3.74% at the end of the second quarter of 2020. Back payments decreased across all portfolio segments as global markets generally improved. The depreciation, after deducting recoveries, was $ 54 million for the second quarter of 2021 compared to $ 30 million for the second quarter of 2020. As of June 30, 2021that was the allowance for loan losses $ 402 million, or 1.46% of the financial claims $ 441 million, or 1.64% of the financial claims March 31, 2021. The loan loss allowance at year-end 2020 was $ 479 million, or 1.77% of the financial claims.

“We were pleased with the continued improvement in portfolio health and the strong performance of our business in the second quarter, reflecting the good operational execution by the global Cat Financial team,” said Dave Walton, President of Cat Financial and vice president responsible for the Financial Products Division of Caterpillar Inc. “Our team continues to focus on executing the strategy to help Caterpillar customers and dealers thrive through financial services solutions.”

About Cat Financial
Cat Financial celebrates its 40th anniversary in 2021 and 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 customers and Cat® dealers with a wide range of financing solutions for Cat machines, engines, Solar® turbines, genuine parts, and services. Headquarters in Nashville, Tennessee, Cat Financial serves customers worldwide with offices and subsidiaries throughout Northern and Eastern South America, Asia, Australia, Europe, Africa and the middle East. Visit cat.com to learn more about Cat Financial.

CAUTION ON FORWARD-LOOKING STATEMENTS

Certain statements in this press release address 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,” “will,” “would”, ” expect, “anticipate,” “plan,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements that are not historical facts are forward-looking statements, including, but not limited to, statements regarding our prospects, projections, projections or trend descriptions. These statements are not guarantees of future performance and speak only as of the date of their publication, and we undertake no obligation to update our forward-looking statements.

Cat Financial’s actual results could differ materially from those described or implied in our forward-looking statements due to a number of factors including, but not limited to: (i) disruptions or volatility in global financial markets that limit our sources of liquidity; (ii) failure to maintain our creditworthiness and possible consequent increases in our cost of borrowing and negative effects on our cost of capital, liquidity, competitive position and access to capital markets; (iii) changes in interest rates, currency fluctuations or market liquidity conditions; (iv) an increase in defaults, withdrawals or net losses by our customers; (v) residual values ​​of the leased equipment; (vi) our compliance with financial and other restrictive obligations in debt agreements; (vii) government monetary or fiscal policy; (viii) political and economic risks, economic instability and events beyond our control in the countries in which we operate; (ix) demand for Caterpillar products; (x) marketing, operational or administrative support from Caterpillar; (xi) our ability to design, manufacture and market quality products that meet the needs of our customers; (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 risk; (xvi) changes in accounting policy; (xvii) the ongoing global coronavirus pandemic; and (xviii) other factors further described on Cat Financial Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

SOURCE Cat Financial