Cat Financial reported revenues of $2.645 billion, an increase of $93 million, or 4%, compared with 2010. Profit after tax was $378 million, a $100 million, or 36%, increase from 2010.

The increase in revenues was principally due to a $76 million favorable impact from higher average earning assets (finance receivables and operating leases at constant interest rates), a $54 million favorable impact from miscellaneous net revenue items and a $49 million favorable change from returned or repossessed equipment. These increases in revenue were partially offset by an $86 million unfavorable impact from lower interest rates on new and existing finance receivables.

Profit before income taxes was $504 million for 2011, compared to $329 million for 2010. The increase was principally due to a $54 million favorable impact from miscellaneous net revenue items, a $49 million improvement in net yield on average earning assets, a $49 million favorable change from returned or repossessed equipment, a $37 million decrease in the provision for credit losses and a $28 million favorable impact from higher average earning assets. These increases in pre-tax profit were partially offset by a $54 million increase in general, operating and administrative expense.

New retail financing was $11.32 billion, an increase of $1.9 billion, or 20%, from 2010. The increase was primarily related to improvements in our Asia/Pacific and Mining and North America operating segments.

During 2011, Cat Financial's overall portfolio quality reflected continued improvement. At the end of 2011, past dues were 2.89%, down from 3.54% at the end of the third quarter of 2011 and 3.87% at the end of 2010.
 
Write-offs, net of recoveries, were $158 million for the full-year 2011, compared to $237 million for 2010. Full-year 2011 write-offs, net of recoveries, were 0.70% of average annual retail portfolio, compared to 1.04% in 2010.

At year-end 2011, Cat Financial's allowance for credit losses totaled $369 million or 1.47% of net finance receivables, compared with $363 million or 1.57% of net finance receivables at year-end 2010. The overall increase of $6 million in allowance for credit losses during the year reflects a $31 million increase in allowance due to an increase in the Cat Financial net finance receivables portfolio, partially offset by a $25 million decrease associated with the lower allowance rate.