Cat Financial reported second-quarter revenues of $675 million, an increase of $27 million, or 4 percent, compared with the second quarter of 2010. Second-quarter profit after tax was $107 million, a $25 million, or 30-percent increase from the second quarter of 2010.
The increase in revenues was principally due to a $28 million favorable impact from higher earning assets (finance receivables and operating leases at constant interest rates) and a favorable impact from miscellaneous net revenue items, partially offset by a $21 million unfavorable impact from lower interest rates on new and existing finance receivables.
Profit before income taxes was $152 million for the second quarter of 2011, compared to $95 million for the second quarter of 2010. The increase was principally due to a $21 million favorable impact from higher net yield on average earning assets, a $20 million decrease in the provision expense and a favorable impact from miscellaneous net revenue items. These increases were partially offset by an $18 million increase in general, operating and administrative expense.
New retail financing was $2.9 billion, an increase of $451 million, or 18 percent, from the second quarter of 2010. The increase was primarily related to improvements in the company’s Asia-Pacific and Mining and Latin America operating segments.
At the end of the second quarter of 2011, past dues were 3.73 percent, a decrease from 3.94 percent at the end of the first quarter of 2011, 3.87 percent at the end of 2010 and 5.33 percent at the end of the second quarter of 2010. The decrease in past dues reflects the continued improvement in the global economy. Write-offs, net of recoveries, were $29 million for the second quarter of 2011, down from $52 million in the second quarter of 2010.
“We continue to see improvements in Cat Financial’s global business,” said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. “Past dues and quarterly net write-offs were at their lowest levels since 2008 and our retail new business increased for the fifth consecutive quarter.”
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.