October 28, 2021
Third-quarter 2021 sales and revenues increased 25% to $12.4 billion
Third-quarter 2021 profit per share of $2.60; adjusted profit per share of $2.66
Strong balance sheet; returned $2.0 billion to shareholders through dividends and share repurchases in the quarter
October 28, 2021 Cat Financial reported third-quarter 2021 revenues of $634 million, an increase of $36 million, or 6%, compared with the third quarter of 2020. Third-quarter 2021 profit was $101 million, an increase of $53 million, or 110%, compared with the third quarter of 2020. Third-quarter 2021 profit before income taxes was $131 million, an increase of $35 million, or 36%, compared with the third quarter of 2020. The increase was primarily due to a $27 million favorable impact from returned or repossessed equipment, an $11 million decrease in provision for credit losses and a $10 million increase in net yield on average earning assets. These favorable impacts were partially offset by a $19 million increase in general, operating and administrative expenses, mostly due to higher short-term incentive compensation expense.
The provision for income taxes reflected an estimated annual tax rate of 24% in the third quarter of 2021, compared with 33% in the third quarter of 2020. During the third quarter of 2021, retail new business volume was $3.34 billion, an increase of $742 million, or 29%, from the third quarter of 2020. The increase was driven by higher volume across all segments with the exception of a decrease in Asia/Pacific.
At the end of the third quarter of 2021, past dues were 2.41%, compared with 3.81% at the end of the third quarter of 2020. Past dues decreased across all portfolio segments as global markets generally improved. Write-offs, net of recoveries, were $76 million for the third quarter of 2021, compared with $125 million for the third quarter of 2020. As of September 30, 2021, the allowance for credit losses totaled $378 million, or 1.41% of finance receivables, compared with $402 million, or 1.46% of finance receivables, at June 30, 2021. The allowance for credit losses at year-end 2020 was $479 million, or 1.77% of finance receivables.
“Cat Financial delivered strong third-quarter results through execution of our strategy,” said Dave Walton, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc. “With our ongoing focus on expanding our ability to serve customers through financial services solutions, we remain well-positioned to serve the needs of Caterpillar, Cat dealers and our growing customer base worldwide.”
