Cat Financial Announces Record 2007 Year-End Results
January 25 2008 - 7:35AM
PR Newswire (US)
PEORIA, Ill., Jan. 25 /PRNewswire-FirstCall/ -- Caterpillar
Financial Services Corporation (Cat Financial) today reported
record revenues of $2.998 billion for 2007, an increase of $235
million, or 9 percent, compared with 2006. Profit after tax was a
record $494 million, a $21 million, or 4 percent, increase over
2006. Of the increase in revenues, $128 million resulted from the
impact of higher interest rates on new and existing finance
receivables, and $91 million resulted from the impact of continued
growth of finance receivables and operating leases (earning
assets). In addition, various other net revenue items increased $16
million. On a pre-tax basis, profit was up $40 million, or 6
percent, compared with 2006. The increase was principally due to an
increase of $76 million in margin (wholesale, retail finance,
operating lease and associated fee revenues less interest expense
and depreciation on assets leased to others) and a $16 million
increase in other net revenues. Of the increase in margin, $42
million was due to an improvement in net yield on average earning
assets, and $34 million resulted from the growth in average earning
assets over 2006 of $882 million. These increases were offset by a
$29 million increase in provision expense, an $18 million increase
in operating expenses and a $5 million increase in various other
expenses. New retail financing was a record $14.07 billion, an
increase of $1.9 billion, or 16 percent, from 2006. The increase
was the result of increased new retail financing, primarily in our
Europe, Diversified and Asia-Pacific operating segments. Past dues
over 30 days at December 31, 2007 were 2.36 percent compared to
1.71 percent at December 31, 2006, due primarily to the softening
of the U.S. housing industry. Write-offs, net of recoveries, for
the year ended December 31, 2007 were $68.2 million (0.31 percent
of average net retail finance receivables) compared to $46.9
million (0.24 percent of average net retail finance receivables)
for the year ended December 31, 2006. Caterpillar Inc. Vice
President and Cat Financial President Kent M. Adams said, "Although
past dues and write-offs have increased from 2006, by historical
standards our portfolio continues to perform well. This solid
portfolio performance, combined with the growth driven by our
global presence, has enabled us to deliver record profit despite
the downturn experienced in the global credit markets and the
weaker U.S. housing industry." For over 25 years, Cat Financial, a
wholly-owned subsidiary of Caterpillar Inc., has been providing a
wide range of financing alternatives to customers and Caterpillar
dealers for Caterpillar machinery and engines, Solar (R) gas
turbines and other equipment and marine vessels. Cat Financial has
offices and subsidiaries located throughout the Americas, Asia,
Australia, Latin America and Europe, with headquarters in
Nashville, Tennessee. STATISTICAL HIGHLIGHTS: FOURTH QUARTER 2007
VS. FOURTH QUARTER 2006 (ENDING DECEMBER 31) (Millions of dollars)
2007 2006 CHANGE Revenues $780 $707 10% Profit Before Tax $172 $168
2% Profit After Tax $113 $117 (3%) New Retail Financing $4,100
$3,380 21% Total Assets $29,429 $27,336 8% FULL YEAR 2007 VS. FULL
YEAR 2006 (ENDING DECEMBER 31) (Millions of dollars) 2007 2006
CHANGE Revenues $2,998 $2,763 9% Profit Before Tax $728 $688 6%
Profit After Tax $494 $473 4% New Retail Financing $14,074 $12,164
16% SAFE HARBOR STATEMENT UNDER THE SECURITIES LITIGATION REFORM
ACT OF 1995 Certain statements contained in this earnings release
may be considered "forward-looking statements" and involve risks
and uncertainties that could significantly impact results. In this
context, words such as "believes," "expects," "estimates,"
"anticipates," "will," "should" and similar words or phrases often
identify forward-looking statements made on behalf of Cat
Financial. It is important to note that actual results of the
company may differ materially from those described or implied in
such forward-looking statements based on a number of factors and
uncertainties, including, but not limited to changes in economic
conditions; currency exchange or interest rates; political
stability; market acceptance of the company's products and
services; significant changes in the competitive environment;
changes in law, regulations and tax rates; and other general
economic, business and financing conditions and factors described
in more detail in the company's Form 10-K filed with the Securities
and Exchange Commission on February 23, 2007. We are under no
obligation to (and expressly disclaim any obligation to) update or
alter said forward-looking statements. DATASOURCE: Caterpillar
Financial Services Corporation CONTACT: Jim Dugan, Corporate Public
Affairs of Caterpillar Financial Services Corporation,
+1-309-494-4410, cell, +1-309-360-7311, Web site:
http://www.cat.com/
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