NASHVILLE--Cat Financial reported first-quarter 2013 revenues of $680 million, an increase of $12 million, or 2 percent, compared with the first quarter of 2012. First-quarter 2013 profit after tax was $141 million, a $21 million, or 18 percent, increase from the first quarter of 2012.
The increase in revenues was primarily due to an $82 million favorable impact from higher average earning assets (finance receivables and operating leases at constant rates), partially offset by a $63 million unfavorable impact from lower average financing rates on new and existing finance receivables and operating leases and an $8 million unfavorable impact from returned or repossessed equipment.
Profit before income taxes was $187 million for the first quarter of 2013, compared with $170 million for the first quarter of 2012. The increase was primarily due to a $34 million favorable impact from higher average earning assets, partially offset by an $8 million unfavorable impact from returned or repossessed equipment and a $6 million unfavorable impact due to the absence of favorable mark-to-market adjustments that were recorded on interest rate derivative contracts in the first quarter of 2012.
The provision for income taxes reflects an estimated annual tax rate of 27 percent for the first quarter of 2013 and 2012. The first quarter 2013 estimated annual tax rate of 27 percent excludes a benefit of $7 million reflecting the impact of the American Taxpayer Relief Act.
New retail financing in the first quarter of 2013 was $2.90 billion, a decrease of $162 million, or 5 percent, from the first quarter of 2012. The decrease was primarily related to our Asia/Pacific, Europe and Caterpillar Power Finance and Latin America operating segments, partially offset by growth in our North America operating segment.
At the end of the first quarter of 2013, past dues were 2.52 percent compared with 2.26 percent at the end of 2012. The increase in past dues from year-end is due to seasonality impacts. At the end of the first quarter of 2012, past dues were 3.19 percent. Write-offs, net of recoveries, were $10 million for the first quarter of 2013, down from $11 million for the first quarter of 2012.
As of March 31, 2013, Cat Financial's allowance for credit losses totaled $429 million or 1.49 percent of net finance receivables, compared with $426 million or 1.49 percent of net finance receivables at year-end 2012. The allowance for credit losses as of March 31, 2012, was $379 million or 1.47 percent of net finance receivables.
"Cat Financial's business continues to perform well and we are pleased with the performance of our portfolio," said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. "Past dues and write-offs are down from the first quarter of last year. With continued focus on managing our portfolio and providing financial services excellence, Cat Financial is well-positioned to support Caterpillar customers and Cat dealers around the world."
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.