Of the decrease in revenues,
Profit before income taxes was
Provision for income taxes decreased
New retail financing was
At the end of the first quarter 2009, past dues were 5.44 percent compared with 3.88 percent at the end of 2008 and 2.81 percent at the end of first quarter 2008. Past dues increased during the first quarter in all geographic areas, with the largest increases in
Cat Financial's allowance for credit losses totaled
"While the global recession presented numerous challenges, our continued access to liquidity, along with our conservative underwriting standards, portfolio management practices and cost-control efforts have positioned Cat Financial to successfully manage through the downturn," said
"Throughout the quarter, Cat Financial maintained access to liquidity through our broad and diverse funding program. Significantly, during the first quarter, we were able to issue a record
"While past dues increased, particularly in
"As the global economic difficulties of 2008 extend into 2009, Cat Financial continues to be a reliable source of financing for Caterpillar customers and dealers," Adams added.
Cat Financial expects recessionary conditions to persist in most of the world throughout 2009, with no growth in the world economy. For 2009, Cat Financial expects its profit before tax to decline by about 45 percent compared with 2008, primarily due to higher liquidity costs and higher borrowing rates, resulting in tighter spreads between the cost of borrowing and Cat Financial's lending rates. Cat Financial also continues to expect higher past dues and write-offs in 2009 compared with 2008. While Cat Financial is very optimistic about long-term growth, the timing and speed of recovery are highly uncertain.
For over 25 years, Cat Financial, a wholly-owned subsidiary of Caterpillar Inc., has been providing a wide range of financing alternatives to customers and Caterpillar dealers for Caterpillar machinery and engines, Solar(R) gas turbines and other equipment and marine vessels. Cat Financial has offices and subsidiaries located throughout the Americas,
FIRST QUARTER 2009 VS. FIRST QUARTER 2008 (ENDING MARCH 31) (Millions of dollars) 2009 2008 CHANGE Revenues* $681 $786 (13%) Profit Before Income Taxes* $71 $188 (62%) Profit After Tax $51 $124 (59%) New Retail Financing $1,579 $3,474 (55%) Total Assets $32,459 $30,733 6% *Certain amounts for first quarter 2008 have been reclassified to conform to the current presentation.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this earnings release may be considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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. In this context, words such as "believes," "expects," "estimates," "anticipates," "will," "should" and similar words or phrases often identify forward-looking statements made on behalf of Cat Financial. These statements are only predictions. Actual events or results may differ materially due to factors that affect international businesses, including changes in economic conditions, laws and regulations and political stability, as well as factors specific to Cat Financial and the markets we serve, including the market's acceptance of the Company's products and services, the creditworthiness of customers, interest rate and currency rate fluctuations and estimated residual values of leased equipment. Those 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
SOURCE Cat Financial