Cat Financial revenue rises 10% to $991 million

• Cat Financial reported second-quarter revenue of $991 million and profit of $145 million.
• Caterpillar shares rose 2% to $830.03 in premarket trading.
• Retail new business volume increased 9% to $3.92 billion as past dues improved.

Cat Financial, the financing subsidiary of Caterpillar (NYSE:CAT), reported second-quarter revenue of $991 million, up 10% year over year.

Profit rose 6% to $145 million, while pretax profit increased 13% to $206 million from $183 million last year.

Higher earning assets added $44 million to pretax profit, partly offset by a $22 million increase in credit-loss provisions.

The estimated annual tax rate rose to 28%, while new business volume reached $3.92 billion and past dues improved to 1.31%.

Following the announcement, Caterpillar share price was up 2% at $830.03 in premarket trading.

The quarter followed first-quarter revenue of $947 million, profit of $144 million and retail new business volume of $3.19 billion.

First-half revenue reached $1.94 billion, profit increased 8% to $289 million and total assets rose 6% to $40.46 billion.