Cat Financial Announces Second-Quarter 2024 Results
Rhea-AI Summary
Cat Financial reported second-quarter 2024 revenues of $865 million, a 9% increase from Q2 2023. However, the company recorded a loss of $65 million, down 143% from the previous year's profit. This was primarily due to a $210 million loss on divestiture of a non-U.S. entity. Excluding this, profit before income taxes was $192 million, a 6% decrease. Retail new business volume increased by 8% to $3.41 billion. Past dues improved to 1.74% from 2.15% in Q2 2023. The allowance for credit losses decreased to 0.89% of finance receivables, down from 1.18% at year-end 2023. Despite challenges, Cat Financial maintains strong business activity and portfolio performance.
AI-generated analysis. Not financial advice.
Positive
- Revenues increased by 9% to $865 million in Q2 2024
- Retail new business volume grew by 8% to $3.41 billion
- Past dues improved to 1.74% from 2.15% in Q2 2023
- Allowance for credit losses decreased to 0.89% of finance receivables from 1.18% at year-end 2023
Negative
- Reported a loss of $65 million, down 143% from Q2 2023 profit
- $210 million loss on divestiture of a non-U.S. entity
- Profit before income taxes (excluding divestiture loss) decreased by 6% to $192 million
- Write-offs increased to $18 million from $8 million in Q2 2023
News Market Reaction – CAT
On the day this news was published, CAT gained 3.04%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Second-quarter 2024 loss before income taxes was
The provision for income taxes for the second quarter of 2024 was
During the second quarter of 2024, retail new business volume was
At the end of the second quarter of 2024, past dues were
"Our business activity remains strong, and our global portfolio continues to perform well," said Dave Walton, President of Cat Financial and Senior Vice President with responsibility for the Financial Products Division of Caterpillar Inc. "The Cat Financial team continues to focus on execution of our strategy and supporting Caterpillar customers and dealers with financial services solutions."
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. Cat Financial provides a wide range of financing solutions to customers and Cat® dealers for machines, engines, Solar® turbines, genuine Cat parts and services. Headquartered in
STATISTICAL HIGHLIGHTS:
SECOND-QUARTER 2024 VS. SECOND-QUARTER 2023 (ENDED JUNE 30, EXCEPT TOTAL ASSETS) (Millions of dollars) | |||||
2024 | 2023 | CHANGE | |||
Revenues | $ 865 | $ 793 | 9 % | ||
Profit (Loss) Before Income Taxes | $ (18) | $ 205 | (109) % | ||
Profit (Loss) (excluding profit attributable to noncontrolling interests) | $ (65) | $ 150 | (143) % | ||
Retail New Business Volume | $ 3,412 | $ 3,152 | 8 % | ||
Total Assets at June 30 and December 31, respectively | $ 33,506 | $ 33,112 | 1 % | ||
SIX MONTHS 2024 VS. SIX MONTHS 2023 (ENDED JUNE 30) (Millions of dollars) | |||||
2024 | 2023 | CHANGE | |||
Revenues | $ 1,718 | $ 1,561 | 10 % | ||
Profit (Loss) Before Income Taxes | $ 211 | $ 409 | (48) % | ||
Profit (Loss) (excluding profit attributable to noncontrolling interests) | $ 104 | $ 299 | (65) % | ||
Retail New Business Volume | $ 6,154 | $ 5,616 | 10 % | ||
FORWARD-LOOKING STATEMENTS
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Cat Financial's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers ; (ii) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (iii) changes in interest rates, currency fluctuations or market liquidity conditions; (iv) an increase in delinquencies, repossessions or net losses of our customers; (v) residual values of leased equipment; (vi) our compliance with financial and other restrictive covenants in debt agreements; (vii) government monetary or fiscal policies; (viii) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (ix) demand for Caterpillar products; (x) marketing, operational or administrative support received from Caterpillar; (xi) our ability to develop, produce and market quality products that meet our customers' needs; (xii) information technology security threats and computer crime; (xiii) alleged or actual violations of trade or anti-corruption laws and regulations; (xiv) new regulations or changes in financial services regulations; (xv) additional tax expense or exposure; (xvi) changes in accounting guidance; (xvii) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xviii) other factors described in more detail in Cat Financial's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
View original content:https://www.prnewswire.com/news-releases/cat-financial-announces-second-quarter-2024-results-302215397.html
SOURCE Cat Financial