Thu, Aug 29, 2:43 PM (138 days ago)
In the third quarter of 2024, John Deere Capital Corporation reported total revenues of $1,284.3 million, a 21% increase from $1,057.6 million in the same period last year, driven by higher average portfolio balances and financing rates. However, net income attributable to the company decreased by 22% to $122.6 million due to a significant rise in the provision for credit losses, which surged 446% to $122.4 million, reflecting elevated delinquencies and market conditions. The company's total receivables and leases reached $61,065.1 million, up from $55,036.4 million a year prior, with wholesale receivables increasing due to higher dealer inventory. Cash flows from operating activities improved to $1,237.9 million, but investing activities saw significant outflows of $5,306.4 million, primarily for portfolio growth. Concerns include rising interest rates, which have pressured profit margins and increased financing costs, alongside uncertainties from geopolitical factors and commodity price fluctuations. The company anticipates continued spread compression and higher credit loss provisions, impacting future profitability.