Boston, MA 10/24/2013 (wallstreetpr) – Caterpillar Inc. (NYSE:CAT) has posted its 3Q13 results that shows an increase of around $20 million or 3% in its revenue from the last year pushing the total figure to $698 million. The total profit for the financial giant after deducting tax is $118 million or 8% per share that shows a $9 million increase from the previous year.
Increase in the total revenue of the company is a result of the $40 million positive impact created by the elevated average earning assets that efficiently counterbalances the $26 million negative impact from the lower financing prices on new as well as existing operating leases and finance receivables.
Total profit excluding the taxes is $165 million as compared to $153 million last year. Income tax stipulations show an estimated tax rate of around 27% for both the third quarters of year 2012 and 2013.
For 3Q13, new retail financing plunged $42 million or 1% making it $3.17 billion. This dwindle was shown in all the operating segments of new retail financing with an exception of North America.
The past dues for the financing company at the end of 3Q are 2.45% as compared to 2.64% of 2Q. There is a $58 million increase in net of recoveries and write-offs for 3Q13 as compared to $29 million for 3Q12. This sharp increase in the write-offs is due to Caterpillar’s Financial European marine portfolio that was offered previously as allowance for the credit losses.
The total financial allowances for the credit losses at the end of September were $404 million or 1.4% of net financial receivables as compared to $426 million or 1.49% previous year.
According to Kent Adams, Vice President and Financial President of Caterpillar, the steady growth in the earning assets is a result of strong portfolio and diversified funding platform of the company.
