Cat Financial Announces First-Quarter 2022 Results

Cat Financial reported first-quarter 2022 revenues of $652 million, an increase of $13 million, or 2%, compared with the first quarter of 2021. First-quarter 2022 profit was $143 million, a $3 million, or 2%, increase from the first quarter of 2021.

The increase in revenues was primarily due to a $36 million favorable impact from returned or repossessed equipment, partially offset by a $29 million unfavorable impact from lower average financing rates. 

First-quarter 2022 profit before income taxes was $193 million, a $3 million, or 2%, decrease from the first quarter of 2021. The decrease was primarily due to a $37 million increase in provision for credit losses, partially offset by a $36 million favorable impact from returned or repossessed equipment.  The impact of lower average financing rates was mostly offset by lower interest expense.

The provision for income taxes reflected an estimated annual tax rate of 25% in the first quarter of 2022, compared with 27% in the first quarter of 2021.

During the first quarter of 2022, retail new business volume was $2.78 billion, a decrease of $30 million, or 1%, from the first quarter of 2021. The decrease was primarily driven by lower volume in Asia/Pacific and Mining, partially offset by increases in North America and Latin America.

At the end of the first quarter of 2022, past dues were 2.05%, compared with 2.90% at the end of the first quarter of 2021. The decrease in past dues was mostly driven by the North America, Caterpillar Power Finance and EAME portfolios. Write-offs, net of recoveries, were $8 million for the first quarter of 2022, compared with $24 million for the first quarter of 2021. As of March 31, 2022, the allowance for credit losses totaled $357 million, or 1.29% of finance receivables, compared with $337 million, or 1.22% of finance receivables at December 31, 2021. The increase in allowance for credit losses included a higher reserve for the Russia and Ukraine portfolios.

"The Cat Financial team continues to focus on execution of our strategy and supporting our customers with financial services solutions," said Dave Walton, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc. "With strong portfolio health, we continue to deliver solid operational results."

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. For more than 40 years, Cat Financial has provided a wide range of financing solutions to customers and Cat® dealers for machines, engines, Solar® gas 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.