Cat Financial Announces Third-Quarter 2024 Results
Cat Financial Announces Third-Quarter 2024 Results
Cat Financial reported third-quarter 2024 revenues of $888 million, an increase of $42 million, or 5%, compared with $846 million in the third quarter of 2023. The increase in revenues was primarily due to a favorable impact from higher average earning assets of $34 million and a favorable impact from higher average financing rates of $23 million. Third-quarter 2024 profit was $137 million, an increase of $39 million, or 40%, compared with $98 million profit in the third quarter of 2023.
Third-quarter 2024 profit before income taxes was $182 million, an increase of $12 million, or 7%, compared with $170 million profit in the third quarter of 2023. The increase was primarily due to lower provision for credit losses of $16 million.
The provision for income taxes for the third quarter of 2024 was $45 million compared with $72 million for the third quarter of 2023. The decrease was due to a discrete tax expense of $27 million recorded in the third quarter of 2023 for the repatriation of non-U.S. earnings and the change in the reinvestment position of a non-U.S. subsidiary.
During the third quarter of 2024, retail new business volume was $3.40 billion, an increase of $502 million, or 17%, compared with $2.89 billion in the third quarter of 2023. The increase was primarily driven by higher volume in Mining and North America.
At the end of the third quarter of 2024, past dues were 1.74%, compared with 1.96% at the end of the third quarter of 2023. Write-offs, net of recoveries, were $27 million for the third quarter of 2024, compared with $9 million for the third quarter of 2023. As of September 30, 2024, the allowance for credit losses totaled $255 million, or 0.87% of finance receivables, compared with $254 million, or 0.89% of finance receivables at June 30, 2024. The allowance for credit losses at year-end 2023 was $331 million, or 1.18% of finance receivables.
“Cat Financial delivered another quarter of strong results. Our portfolio continues to perform well with past dues remaining at historical lows,” 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 remains focused on executing our strategy and providing financial services solutions to support Caterpillar customers and dealers.”
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 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.
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