Cat Financial reported first-quarter 2012 revenues of $668 million, an increase of $28 million, or 4%, compared with the first quarter of 2011. First-quarter profit after tax was $120 million, a $37 million, or 45%, increase from the first quarter of 2011.
The increase in revenues was principally due to a $47 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $15 million unfavorable impact from lower rates on new and existing finance receivables and operating leases.
Profit before income taxes was $170 million for the first quarter of 2012, compared to $115 million for the first quarter of 2011. The increase was principally due to a $36 million decrease in the provision for credit losses, an $18 million favorable impact from higher average earning assets and a $13 million improvement in net yield on average earning assets. These increases were partially offset by a $10 million increase in general, operating and administrative expense.
The provision for income taxes in the first quarter of 2012 reflects an estimated annual tax rate of 27% compared to 26% in the first quarter of 2011.
New retail financing in the first quarter of 2012 was $3.1 billion, an increase of $292 million, or 11%, from the first quarter of 2011. The increase was a result of growth across all operating segments with the exception of North America, which declined slightly.
At the end of the first quarter of 2012, past dues were 3.19% compared with 2.89% at the end of 2011. The increase in past dues from year-end is primarily due to seasonality impacts. At the end of the first quarter of 2011, past dues were 3.94%. Write-offs, net of recoveries, were $11 million for the first quarter of 2012, down from $41 million in the first quarter of 2011.
As of March 31, 2012, Cat Financial's allowance for credit losses totaled $379 million or 1.47% of net finance receivables, compared with $369 million or 1.47% of net finance receivables at year-end 2011. The allowance for credit losses as of March 31, 2011, was $380 million, which was 1.55% of net finance receivables.
"We are very pleased with our first-quarter results," says Kent Adams, Cat Financial president and vice president of Caterpillar Inc. "Cat Financial's business continues to perform well, with a growing asset portfolio and decreases in write-offs and past dues from the first quarter of last year. We are well positioned to support Caterpillar customers and dealers around the world."
