"Cat Financial's portfolio and business continues to perform well. We believe customer risk exposure is well managed, with a broad distribution of portfolio exposure across our global customer base," said Dave Walton, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc.

Cat Financial reported third-quarter 2017 revenues of $673 million, an increase of $22 million, or 3 percent, compared with the third quarter of 2016. Third-quarter 2017 profit was $86 million, an $11 million, or 11 percent, decrease from the third quarter of 2016.

The increase in revenues was primarily due to a $15 million favorable impact from higher average financing rates and a $14 million favorable impact from lending activity with Caterpillar, partially offset by a $6 million unfavorable impact from lower average earning assets.

Profit before income taxes was $126 million for the third quarter of 2017, compared with $146 million for the third quarter of 2016. The decrease was primarily due to a $19 million increase in provision for credit losses and a $16 million increase in general, operating and administrative expenses primarily due to higher incentive compensation. These unfavorable impacts were partially offset by a $9 million favorable impact from lending activity with Caterpillar and an $8 million increase in net yield on average earning assets.

The provision for income taxes reflects an estimated annual tax rate of 30 percent in the third quarter of 2017, compared with 31 percent in the third quarter of 2016.

During the third quarter of 2017, retail new business volume was $2.78 billion, an increase of $83 million, or 3 percent, from the third quarter of 2016. The increase was primarily related to higher volume in Asia/Pacific and Mining, partially offset by decreases in Latin America and Caterpillar Power Finance.

At the end of the third quarter of 2017, past dues were 2.73 percent, compared with 2.77 percent at the end of the third quarter of 2016. Write-offs, net of recoveries, were $47 million for the third quarter of 2017, compared with $29 million for the third quarter of 2016. The increase in write-offs, net of recoveries, was primarily due to the Latin America and marine portfolios.

As of September 30, 2017, the allowance for credit losses totaled $343 million, or 1.27 percent of finance receivables, compared with $346 million, or 1.28 percent of finance receivables at September 30, 2016. The allowance for credit losses at year-end 2016 was $343 million, or 1.29 percent of finance receivables.

"Cat Financial's portfolio and business continues to perform well. We believe customer risk exposure is well managed, with a broad distribution of portfolio exposure across our global customer base," said Dave Walton, president of Cat Financial and vice president with responsibility for the Financial Products Division of Caterpillar Inc. "Cat Financial remains well positioned to serve Caterpillar customers and dealers worldwide through financial services excellence."

For more information, visit www.caterpillar.com.

Today's top stories

Iconic Hotel Being Demolished to Make Way for Baseball Stadium

MD 4 Project to Add Diamond Interchange

Volvo Construction Equipment Showcases New Products at North American Volvo Days

VIDEO: Anniversary of Highway Workers' Memorial Renews Calls for Work Zone Safety

Yanmar Compact Equipment Introduces New Line of Branded Attachments for Compact Track Loaders

Caterpillar Introduces Dynamic Energy Transfer Solution for Battery, Diesel-Electric Mining Equipment

Five Finalists Compete for Grand Prize Makeover in Bobcat Park and Rec Makeover Contest

VIDEO: Students From Washington, Ohio Earn Top Honors in Annual ARTBA Transportation Video Contest