Cat Financial Announces 2012 Year-End Results

NASHVILLE, Tenn., Jan. 28, 2013 /CNW/ - 
Full-Year 2012 vs. Full-Year 2011 Cat Financial reported revenues of $2.69 
billion for 2012, an increase of $48 million, or 2 percent, compared with 
2011. Profit after tax was $432 million, a $54 million, or 14 percent, 
increase from 2011. 
The increase in revenues was primarily due to a $223 million favorable impact 
from higher average earning assets (finance receivables and operating leases 
at constant rates), partially offset by a $139 million unfavorable impact from 
lower average financing rates on new and existing finance receivables and 
operating leases and a $33 million unfavorable impact from returned or 
repossessed equipment. 
Profit before income taxes was $591 million for 2012, compared with $504 
million for 2011. The increase was primarily due to an $89 million favorable 
impact from higher average earning assets, a $22 million favorable impact from 
mark-to-market adjustments that were recorded on interest rate derivative 
contracts and a $15 million decrease in the provision for credit losses. These 
increases in pre-tax profit were partially offset by a $33 million unfavorable 
impact from returned or repossessed equipment. 
The provision for income taxes reflects an annual tax rate of 25 percent for 
both 2012 and 2011. The 2011 provision for income taxes included a $15 million 
benefit related to prior years. 
New retail financing for 2012 was $13.96 billion, an increase of $2.63 
billion, or 23 percent, from 2011. The increase was a result of growth across 
all operating segments, with the largest increases occurring in our Europe and 
Caterpillar Power Finance, Asia/Pacific and Mining operating segments. 
During 2012, Cat Financial's overall portfolio quality reflected continued 
improvement. At the end of 2012, past dues were 2.26 percent compared with 
2.80 percent at the end of the third quarter of 2012 and 2.89 percent at the 
end of 2011. 
Write-offs, net of recoveries, were $102 million for the full-year 2012, 
compared with $158 million for 2011. Full-year 2012 write-offs, net of 
recoveries, were 0.42 percent of average annual retail portfolio, compared 
with 0.70 percent in 2011. 
At year-end 2012, Cat Financial's allowance for credit losses totaled $426 
million or 1.49 percent of net finance receivables, compared with $369 million 
or 1.47 percent of net finance receivables at year-end 2011. The overall 
increase of $57 million in allowance for credit losses during the year 
reflects a $51 million increase in allowance due to an increase in the Cat 
Financial net finance receivables portfolio and a $6 million increase 
associated with the higher allowance rate. 
Fourth-Quarter 2012 vs. Fourth-Quarter 2011 Cat Financial reported 
fourth-quarter 2012 revenues of $679 million, an increase of $17 million, or 3 
percent, compared with the fourth quarter of 2011. Fourth-quarter profit after 
tax was $99 million, a $4 million, or 4 percent, increase from the fourth 
quarter of 2011. 
The increase in revenues was primarily due to an $80 million favorable impact 
from higher average earning assets (finance receivables and operating leases 
at constant rates), partially offset by a $52 million unfavorable impact from 
lower average financing rates on new and existing finance receivables and 
operating leases and a $12 million unfavorable impact from returned or 
repossessed equipment. 
Profit before income taxes was $124 million for the fourth quarter of 2012, 
compared with $111 million for the fourth quarter of 2011. The increase was 
primarily due to a $32 million favorable impact from higher average earning 
assets, a $6 million decrease in general, operating and administrative expense 
and a $5 million favorable impact from mark-to-market adjustments that were 
recorded on interest rate derivative contracts. These increases were partially 
offset by a $17 million increase in the provision for credit losses and a $12 
million unfavorable impact from returned or repossessed equipment. 
The provision for income taxes in the fourth quarter reflects an annual tax 
rate of 25 percent for both 2012 and 2011.  The 2011 fourth-quarter provision 
for income taxes included an $18 million benefit related to prior years. 
New retail financing in the fourth quarter of 2012 was $3.85 billion, an 
increase of $840 million, or 28 percent, from the fourth quarter of 2011. The 
increase was a result of growth across all operating segments, with the 
largest increases occurring in our North America, Europe and Caterpillar Power 
Finance and Latin America operating segments. 
"We are very pleased with the growth in our new retail financing volume and 
the performance of our portfolio during 2012," said Kent Adams, Cat Financial 
president and vice president of Caterpillar Inc. "Past dues and write-offs 
also improved during the year, and are at the lowest levels since 2007.  We 
continue to be well positioned to serve Caterpillar, Cat dealers, and our 
customers world-wide." 
For over 30 years, Cat Financial, a wholly-owned subsidiary of Caterpillar 
Inc., has been providing financial service excellence to Cat customers. The 
company offers a wide range of financing alternatives to customers and Cat 
dealers for Cat machinery and engines, Solar® gas turbines and other 
equipment and marine vessels. Cat Financial has offices and subsidiaries 
located throughout the Americas, Asia, Australia and Europe, with headquarters 
in Nashville, Tennessee. 
STATISTICAL HIGHLIGHTS: 
FOURTH QUARTER 2012 VS. FOURTH QUARTER 2011 
(ENDED DECEMBER 31) 
(Millions of dollars) 
                       2012    2011    CHANGE 
Revenues                   $ 679   $ 662   3% 
Profit Before Income Taxes $ 124   $ 111   12% 
Profit After Tax           $ 99    $ 95    4% 
New Retail Financing       $ 3,850 $ 3,010 28% 
Total Assets               $34,742 $30,112 15% 
FULL YEAR 2012 VS. FULL YEAR 2011 
(ENDED DECEMBER 31) 
(Millions of dollars) 
                       2012    2011    CHANGE 
Revenues                   $ 2,693 $ 2,645 2% 
Profit Before Income Taxes $ 591   $ 504   17% 
Profit After Tax           $ 432   $ 378   14% 
New Retail Financing       $13,958 $11,323 23% 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements 
contained in this earnings release may be considered "forward-looking 
statements" as that term is defined in the Private Securities Litigation 
Reform Act of 1995.  These statements may relate to future events or our 
future financial performance, which may involve known and unknown risks and 
uncertainties and other factors that may cause our actual results, levels of 
activity, performance or achievement to be materially different from those 
expressed or implied by any forward-looking statements. From time to time, we 
may also provide forward-looking statements in oral presentations to the 
public or in other materials we issue to the public. Forward-looking 
statements give current expectations or forecasts of future events about the 
company. You may identify these statements by the fact that they do not relate 
to historical or current facts and may use words such as "believes," 
"expects," "estimates," "anticipates," "will," "should," "plan," "project," 
"intend," "could" and similar words or phrases.   These statements are only 
predictions. Actual events or results may differ materially due to factors 
that affect international businesses, including changes in economic conditions 
and ongoing challenges in the global financial and credit markets, and changes 
in laws and regulations (including regulations implemented under the 
Dodd-Frank Wall Street Reform and Consumer Protection Act) and political 
stability, as well as factors specific to Cat Financial and the markets we 
serve, including the market's acceptance of our products and services, the 
creditworthiness of our customers, interest rate and currency rate 
fluctuations and estimated residual values of leased equipment. These risk 
factors may not be exhaustive. We operate in a continually changing business 
environment, and new risk factors emerge from time to time. We cannot predict 
these new risk factors, nor can we assess the impact, if any, of these new 
risk factors on our businesses or the extent to which any factor, or 
combination of factors, may cause actual results to differ materially from 
those projected in any forward-looking statements. Accordingly, 
forward-looking statements should not be relied upon as a prediction of actual 
results. Moreover, we do not assume responsibility for the accuracy and 
completeness of those statements. All of the forward-looking statements are 
qualified in their entirety by reference to the factors discussed under the 
captions "Risk Factors" and "Management's Discussion and Analysis of Financial 
Condition and Results of Operations" in our annual report on Form 10-K for the 
fiscal year ended December 31, 2011, and similar sections in our quarterly 
reports on Form 10-Q, that describe risks and factors that could cause results 
to differ materially from those projected in the forward-looking statements. 
Cat Financial undertakes no obligation to publicly update forward-looking 
statements, whether as a result of new information, future events or otherwise. 
Jim Dugan, Global Government & Corporate Affairs, +1-309-494-4100 Office, 
+1-309-360-7311 Mobile, Dugan_Jim@cat.com 
SOURCE: Cat Financial 
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CO: Cat Financial
ST: Tennessee
NI: CST TRN FIN ERN  
-0- Jan/28/2013 12:32 GMT