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Cat Financial Q3 Profit Drops

(RTTNews) - Cat Financial reported that its third-quarter profit was $48 million, an $81 million or 63%, decrease from the third quarter of 2019.

Quarterly profit before income taxes was $96 million, an $88 million or 48%, decrease from the third quarter of 2019. The decrease was primarily due to a $50 million increase in provision for credit losses, a $29 million decrease in net yield on average earning assets and an $18 million unfavorable impact from lower average earning assets.

Quarterly revenues were $598 million, a decrease of $150 million, or 20% from the previous year, due to a $76 million unfavorable impact from lower average financing rates and a $40 million unfavorable impact from lower average earning assets.

Retail new business volume for the third-quarter was $2.60 billion, a decrease of $329 million, or 11%, from the third quarter of 2019. The decrease was driven by lower volume across all segments with the exception of a slight increase in Asia/Pacific.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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