Cat Financial reported third-quarter 2012 revenues of $678 million, an increase of $10 million, or 1 percent, compared with the third quarter of 2011. Third-quarter 2012 profit after tax was $109 million, a $16 million, or 17 percent, increase from the third quarter of 2011.
The increase in revenues was primarily the result of a $63 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $44 million unfavorable impact from lower average financing rates on new and existing finance receivables and operating leases and a $9 million unfavorable impact from gains/losses on returned or repossessed equipment.
New retail financing in the third quarter of 2012 was $3.21 billion, an increase of $565 million, or 21 percent, from the third quarter of 2011. The increase was a result of growth across all operating segments, with the largest increase occurring in our Europe and Caterpillar Power Finance operating segment.
At the end of the third quarter of 2012, past dues were 2.80 percent compared with 3.35 percent at the end of the second quarter of 2012, 2.89 percent at the end of 2011 and 3.54 percent at the end of the third quarter of 2011. All Cat Financial operating segments reported improved past dues. Write-offs, net of recoveries, were $29 million for the third quarter of 2012, down from $50 million in the third quarter of 2011.
As of Sept. 30, Cat Financial's allowance for credit losses totaled $404 million or 1.47 percent of net finance receivables, compared with $369 million or 1.47 percent of net finance receivables at year-end 2011. The allowance for credit losses as of Sept. 30, 2011, was $362 million, which was 1.49 percent of net finance receivables.
"Cat Financial’s business continues to perform well, and we are especially pleased with the continued improvement in the performance of our portfolio," said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. "Past dues and write-offs are down from the third quarter of last year, and the global Cat Financial team remains focused on helping Cat customers and dealers succeed through financial services excellence.”
Cat Financial, a wholly-owned subsidiary of Caterpillar Inc., is headquartered in Nashville, Tenn.