Printer Friendly

CATERPILLAR FINANCIAL SERVICES CORP. ANNOUNCES RECORD RESULTS FOR 1992

 PEORIA, Ill., Jan. 25 /PRNewswire/ -- Caterpillar Financial Services Corp. today reported record profit, revenues, and new business for 1992.
 After-tax profit was $36.6 million, an $8.1 million or 28 percent increase compared with year-end 1991. The increase in after-tax profit resulted primarily from a larger portfolio partially offset by a higher provision for credit losses. In addition, profit increased due to lower costs of borrowed funds and the adoption of SFAS 109, "Accounting for Income Taxes." Excluding the effect of SFAS 109, after-tax profit in 1992 was $34.0 million, a $5.5 million or 19 percent increase compared with 1991.
 Revenues for 1992 were $342.4 million, a $26 million or 8 percent increase compared with 1991. The increase in revenues, which were limited by the low interest rate environment, resulted primarily from a larger portfolio of earning assets.
 New business reached $1.53 billion, $291.8 million or 24 percent greater than 1991. The growth in new business was due primarily to increased financing activity in Germany.
 Past dues over 30 days were 2.5 percent at Dec. 31, 1992, compared with 4.0 percent at year-end 1991. Bad debts written off totaled $14.3 million for 1992 compared with $13.0 million for 1991.
 "Cat Financial employees put in a tremendous effort in 92, and their hard work is reflected in our results: record profit, revenues, and new business as well as a significant decline in past dues," said James S. Beard, vice president of Caterpillar Inc. and president of Caterpillar Financial Services Corp.
 "In 1992, we also provided financing opportunities to more Caterpillar customers worldwide." Caterpillar Financial Services Corp, a wholly owned subsidiary of Caterpillar Inc., provides a wide range of financing alternatives for Caterpillar earthmoving and construction equipment, lift trucks, engines, turbines, and non-competitive related products. The company also extends loans to Caterpillar dealers and customers. Caterpillar Financial Services Corp. and its subsidiaries are located across North America, Australia, and Europe. Company headquarters are in Nashville, Tenn.
 Accounting Changes
 In the fourth quarter of 1992, effective Jan. 1, 1992, Caterpillar Financial Services Corp. adopted SFAS 109, "Accounting for Income Taxes." SFAS changes the method of accounting for income taxes from the deferred method to the liability method.
 The new accounting method resulted in a favorable adjustment of $2.6 million for income tax expense and after-tax profit as of Jan. 1, 1992. There was no significant impact for 1992.
 CATERPILLAR FINANCIAL SERVICES CORP.
 Statistical Highlights
 (Dollar amounts in millions)
 Percent
 Fourth quarters ended Dec. 31 1992 1991 Change
 Revenues $ 87.8 $ 82.5 + 6
 Profit (A) $ 10.7 $ 6.7 +60
 Percent
 Year ended 1992 1991 Change
 Revenues $ 342.4 $ 316.4 + 8
 Profit (A) $ 36.6 $ 28.5 +28
 New business financed $1,531.8 $1,240.0 +24
 Assets $2,843.3 $2,489.0 +14
 Portfolio value $2,812.7 $2,437.1 +15
 (A) Includes the transitional adjustment of $2.6 million from the adoption of SFAS 109.
 -0- 1/25/93
 /CONTACT: Richard Stober of Caterpillar Public Information, 309-675-5548/


CO: Caterpillar Financial Services Corp. ST: Illinois IN: FIN SU: ERN

SM -- NY074 -- 8558 01/25/93 13:51 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 25, 1993
Words:531
Previous Article:JAGUAR ANNOUNCES NEW SALES & MARKETING VICE PRESIDENT
Next Article:KCS ENERGY ACQUIRES 50 PERCENT INTEREST IN 1,076 ACRES ADJOINING ITS BOB WEST/FALCON FIELD IN SOUTH TEXAS
Topics:


Related Articles
SYNOVUS FINANCIAL ANNOUNCES DIVIDEND
CATERPILLAR FINANCIAL SERVICES CORPORATION ANNOUNCES SECOND QUARTER 1992 FINANCIAL RESULTS
AMERICAN RESIDENTIAL HOLDING CORP. REPORTS STRONG FIRST QUARTER EARNINGS
STANDARD & POOR'S RAISES RATINGS OF CATERPILLAR DEBT
CAT FINANCIAL ANNOUNCES RECORD REVENUES, NEW RETAIL FINANCING ACTIVITY AND THIRD QUARTER PROFIT
CAT FINANCIAL ANNOUNCES RECORD REVENUES, NEW RETAIL FINANCING ACTIVITY AND PROFIT
Cat Financial Announces Record Revenues, New Retail Financing Activity and Profit
CAT Financial Announces Record Revenues And Profit
CAT Financial Announces Record Results For Second-Quarter 1997
Cat Financial Announces First-Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters