RTTNews | Jan 29, 2021 06:48AM EST

06:47 Friday, January 29, 2021 (RTTNews.com) - Cat Financial, a unit of Caterpillar Inc. (CAT), reported Friday reported that its fourth-quarter profit declined 8 percent to $96 million from $104 million in the year-ago period.

Quarterly profit before income taxes was $122 million, down 24 percent from the year-ago period. The decrease was primarily due to a $31 million increase in provision for credit losses, a $24 million unfavorable impact from returned or repossessed equipment and a $16 million unfavorable impact from lower average earning assets.

These unfavorable impacts were partially offset by a $24 million decrease in general, operating and administrative expenses, primarily due to lower incentive compensation.

Revenue for the quarter declined 15 percent to $616 million from $725 million last year. The decrease in revenues was primarily due to a $50 million unfavorable impact from lower average financing rates and a $34 million unfavorable impact from lower average earning assets.

Retail new business volume was $10.76 billion, a decrease of $1.13 billion, or 9 percent, from 2019. The decrease was driven by lower volume across all segments with the exception of an increase in Asia/Pacific.

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