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| Cat Financial announces 4Q06 results Caterpillar Financial Services Corporation (Cat Financial) reported record revenues of $2.76 billion for 2006, an increase of $409 million, or 17 percent, compared with 2005. Profit after tax was a record $473 million, a $109 million, or 30 percent, increase over 2005. Of the increase in revenues, $217 million resulted from the impact of continued growth of finance receivables and operating leases (earning assets) and $197 million from the impact of higher interest rates on new and existing finance receivables, offset by a $5 million net decrease in associated fees and various other revenue items. On a pre-tax basis, profit was up $151 million, or 28 percent, compared with 2005, principally due to an increase of $163 million in margin, which was largely due to a $2.3 billion increase in average earning assets over 2005 and an improvement in net yield on average earning assets. In addition, profit increased $24 million due to a decrease in provision expense, primarily resulting from a smaller increase in earning assets ($2.3 billion) compared to 2005 ($3.4 billion). These increases were offset by $25 million in higher operating expenses and an $11 million decrease from various other net revenue items. write your comments about the article :: © 2007 Construction News :: home page |