Caterpillar Financial Services Corporation (Cat Financial) today reported record revenues of $723 million for the third quarter of 2006, an increase of $127 million, or 21 percent, compared with the same quarter in 2005. Profit after tax (net profit) was $132 million, a $45 million, or 52 percent, increase over the third quarter of 2005.

　　Of the increase in revenues over the third quarter of 2005, $59 million resulted from the impact of the growth in average earning assets (finance receivables and operating leases) and $56 million from the impact of higher interest rates on new and existing finance receivables. A $12 million increase in other revenue was primarily due to the absence of a $7 million write-down of a repossessed marine vessel in the third quarter of 2005.

　　On a pre-tax basis, profit was up $62 million, or 48 percent, compared with the third quarter of 2005, principally due to an increase of $44 million in margin (wholesale, retail finance, operating lease and the associated fee revenues included in other revenues less interest expense and depreciation on assets leased to others) resulting from a $2.5 billion increase in average earning assets and an improvement in the net yield on average earning assets. In addition, profit increased due to the absence of the $7 million write-down of the repossessed marine vessel and a $7 million reversal of an investment-related income accrual in the third quarter of 2005.

　　New retail financing grew to $2.96 billion in the third quarter of 2006. The increase of $32 million, or 1 percent, over the third quarter of 2005 occurred primarily due to increased new retail financing in Europe. Past dues over 30 days as of September 30, 2006, were 1.89 percent compared to 1.65 percent as of September 30, 2005. Write-offs, net of recoveries, were $11 million during the quarter compared with $14 million for the third quarter of 2005.

　　Caterpillar Inc. Vice President and Cat Financial President Kent M. Adams said, "We are pleased to announce this record quarter for revenues resulting from the continued growth of average earning assets and a higher yield on new and existing finance receivables. The results reflect the continued coordinated efforts of the Caterpillar dealers, Caterpillar marketing organizations and our employees."

　　For 25 years, Cat Financial, a wholly owned subsidiary of Caterpillar Inc. (Caterpillar), has been providing a wide range of financing alternatives to customers and Caterpillar dealers for Caterpillar machinery and engines, Solar ® gas turbines and other equipment and marine vessels. Cat Financial has offices and subsidiaries located throughout the Americas, Asia, Australia, and Europe, with headquarters in Nashville, Tennessee.