Cat Financial Announces Third-Quarter 2022 Results

Cat Financial reported third-quarter 2022 revenues of $690 million, an increase of $56 million, or 9%, compared with $634 million in the third quarter of 2021. Third-quarter 2022 profit was $131 million, an increase of $30 million, or 30%, compared with $101 million in the third quarter of 2021. The increase in revenues was primarily due to a $63 million favorable impact from higher average financing rates.

Third-quarter 2022 profit before income taxes was $188 million, an increase of $57 million, or 44%, compared with $131 million in the third quarter of 2021. The increase was mainly due to a $75 million favorable impact from a lower provision for credit losses, partially offset by a $25 million impact from mark-to-market adjustments on derivative contracts.

The provision for income taxes reflected an estimated annual tax rate of 27% in the third quarter of 2022, compared with 24% in the third quarter of 2021.

During the third quarter of 2022, retail new business volume was $2.73 billion, a decrease of $617 million, or 18%, from the third quarter of 2021. The decrease was driven by lower volume across all segments with the exception of an increase in Latin America.

At the end of the third quarter of 2022, past dues were 2.00%, compared with 2.41% at the end of the third quarter of 2021. Past dues decreased across all our portfolio segments, with the exception of an increase in Latin America. Write-offs, net of recoveries, were $13 million for the third quarter of 2022, compared with $76 million for the third quarter of 2021. As of September 30, 2022, the allowance for credit losses totaled $339 million, or 1.30% of finance receivables, compared with $376 million, or 1.41% of finance receivables at June 30, 2022. The allowance for credit losses at year-end 2021 was $337 million, or 1.22% of finance receivables.

“The Cat Financial team delivered another quarter of strong results. Our portfolio continues to perform well with historically low past dues,” said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. “Our team remains focused on providing financial services solutions to Caterpillar customers and dealers worldwide.”

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.