Cat Financial posts strong Q3 results

Cat Financial has reported year-on-year improvements in its Q3 2014 revenues and profits after tax, despite a slight dip in business volumes over the period, thanks to the performance of higher earning assets.

Revenues for the quarter hit $743 million, an increase of $44 million, or 6% compared with Q3 2013. Profit after tax was $148 million, a $31 million (26%) increase from the same period last year. Cat Financial says the increase in revenues was primarily due to a $37 million favorable impact from higher average earning assets.

Profit before income taxes was $197 million for Q3 2014, compared with $164 million for Q3 2013. The increase was primarily due to a $23 million improvement on net yield on average earning assets and a $16 million favorable impact from higher average earning assets.

Retail new business volume dipped over the quarter to $3.13 billion, a decrease of $38 million, or 1%, from Q3 2013. The company said the decrease was primarily related to lower volume in mining, partially offset by increases in Cat equipment sales in North America.

“Continued growth and strong yield performance in our earning asset base and the solid performance of our portfolio have resulted in another good quarter for Cat Financial,” said Kent Adams, president of Cat Financial and vice president with responsibility for the financial products division of Caterpillar Inc. “We continue to be well-positioned to serve Caterpillar, Cat dealers and our customers worldwide.”