Caterpillar Reports First-Quarter 2024 Results
-- First-quarter 2024 profit per share of $5.75; adjusted profit per share
of $5.60
-- Enterprise operating cash flow was $2.1 billion in the first quarter of
2024
-- Deployed $5.1 billion of cash for share repurchases and dividends in the
first quarter
First
Quarter
($ in billions except profit per share) 2024 2023
Sales and Revenues $15.8 $15.9
Profit Per Share $5.75 $3.74
Adjusted Profit Per Share $5.60 $4.91
Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 12 and 13.
IRVING, Texas, April 25, 2024 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced first-quarter 2024 results. Sales and revenues for the first quarter of 2024 were $15.8 billion, about flat to the first quarter of 2023, due to lower sales volume, which was mostly offset by favorable price realization.
Operating profit margin was 22.3% for the first quarter of 2024, compared with 17.2% for the first quarter of 2023. Adjusted operating profit margin was 22.2% for the first quarter of 2024, compared with 21.1% for the first quarter of 2023. First-quarter 2024 profit per share was $5.75, compared with first-quarter 2023 profit per share of $3.74. Adjusted profit per share in the first quarter of 2024 was $5.60, compared with first-quarter 2023 adjusted profit per share of $4.91. In the first quarter of 2024 and 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring income/costs.
For the three months ended March 31, 2024, enterprise operating cash flow was $2.1 billion, and the company ended the first quarter with $5.0 billion of enterprise cash. In the quarter, the company deployed $4.5 billion of cash for repurchases of Caterpillar common stock and $0.6 billion of cash for dividends.
"I'm pleased with our team's performance that resulted in higher adjusted operating profit margin, record adjusted profit per share and strong ME&T free cash flow. Our strong balance sheet and ME&T free cash flow allowed us to deploy a record $5.1 billion of cash for share repurchases and dividends in the first quarter," said Chairman and CEO Jim Umpleby. "We continue to execute our strategy for long-term profitable growth."
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
First Quarter 2024 vs. First Quarter 2023
To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar First-Quarter 2024 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2023 (at left) and the first quarter of 2024 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's board of directors and employees.
Total sales and revenues for the first quarter of 2024 were $15.799 billion, a decrease of $63 million, or about flat, compared with $15.862 billion in the first quarter of 2023. Lower sales volume of $684 million and unfavorable currency impacts of $30 million, primarily related to the Australian dollar, were mostly offset by favorable price realization of $575 million and higher Financial Products' revenues of $76 million. The decrease in sales volume was primarily driven by lower sales of equipment to end users; there was not a significant impact from changes in dealer inventories.
In the three primary segments, sales were higher in Energy & Transportation and lower in Construction Industries and Resource Industries.
Sales and Revenues by Segment
(Millions of dollars) First Sales Price Currency Inter- First
$ %
Quarter Segment / Quarter
2023 Volume Realization Other 2024 Change Change
Construction Industries $6,746 $(464) $199 $(22) $(35) $6,424 $(322) (5 %)
Resource Industries 3,427 (425) 173 (11) 29 3,193 (234) (7 %)
Energy & Transportation 6,254 231 202 (1) (5) 6,681 427 7 %
All Other Segment 111 (1) (1) 109 (2) (2 %)
Corporate Items and Eliminations (1,439) (25) 1 4 12 (1,447) (8)
Machinery, Energy & Transportation 15,099 (684) 575 (30) 14,960 (139) (1 %)
Financial Products Segment 902 89 991 89 10 %
Corporate Items and Eliminations (139) (13) (152) (13)
Financial Products Revenues 763 76 839 76 10 %
Consolidated Sales and Revenues $15,862 $(684) $575 $(30) $76 $15,799 $(63) - %
Sales and Revenues by Geographic Region
North America Latin America EAME Asia/Pacific External Sales Inter-Segment Total Sales
and Revenues and Revenues
(Millions of dollars)
$ % Chg
$ % Chg
$ % Chg
$ % Chg
$ % Chg
$ % Chg
$ % Chg
First Quarter 2024
---
Construction Industries $3,833 6 % $595 (1 %) $996 (25 %) $993 (14 %) $6,417 (4 %) $7 (83 %) $6,424 (5 %)
Resource Industries 1,264 (3 %) 476 - % 465 (22 %) 891 (9 %) 3,096 (8 %) 97 43 % 3,193 (7 %)
Energy & Transportation 2,951 15 % 408 7 % 1,294 (7 %) 834 16 % 5,487 9 % 1,194 - % 6,681 7 %
All Other Segment 18 - % (1) - % 4 - % 13 - % 34 (3 %) 75 (1 %) 109 (2 %)
Corporate Items and Eliminations (58) (2) (11) (3) (74) (1,373) (1,447)
Machinery, Energy & Transportation 8,008 7 % 1,476 2 % 2,748 (17 %) 2,728 (5 %) 14,960 (1 %) - % 14,960 (1 %)
Financial Products Segment 659 15 % 101 (3 %) 123 8 % 108 (1 %) 991 10 % - % 991 10 %
Corporate Items and Eliminations (94) (18) (19) (21) (152) (152)
Financial Products Revenues 565 15 % 83 (3 %) 104 8 % 87 (2 %) 839 10 % - % 839 10 %
Consolidated Sales and Revenues $8,573 8 % $1,559 1 % $2,852 (17 %) $2,815 (5 %) $15,799 - %
$ - - % $15,799 - %
First Quarter 2023
---
Construction Industries $3,608 $599 $1,336 $1,161 $6,704 $42 $6,746
Resource Industries 1,308 474 599 978 3,359 68 3,427
Energy & Transportation 2,572 380 1,384 719 5,055 1,199 6,254
All Other Segment 18 4 13 35 76 111
Corporate Items and Eliminations (48) (1) (5) (54) (1,385) (1,439)
Machinery, Energy & Transportation 7,458 1,453 3,322 2,866 15,099 15,099
Financial Products Segment 575 104 114 109 902 902
Corporate Items and Eliminations (83) (18) (18) (20) (139) (139)
Financial Products Revenues 492 86 96 89 763 763
Consolidated Sales and Revenues $7,950 $1,539 $3,418 $2,955 $15,862
$ - $15,862
Consolidated Operating Profit
Consolidated Operating Profit Comparison
First Quarter 2024 vs. First Quarter 2023
To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar First-Quarter 2024 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the first quarter of 2023 (at left) and the first quarter of 2024 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's board of directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation's other operating (income) expenses.
Operating profit for the first quarter of 2024 was $3.519 billion, an increase of $788 million, or 29%, compared with $2.731 billion in the first quarter of 2023. The increase was primarily due to the absence of the impact of the divestiture of the company's Longwall business in 2023 of $586 million and favorable price realization of $575 million, partially offset by the profit impact of lower sales volume of $268 million.
Profit (Loss) by Segment
(Millions of dollars) First Quarter First Quarter
$ %
2024 2023
Change Change
Construction Industries $1,764 $1,790 $(26) (1 %)
Resource Industries 730 764 (34) (4 %)
Energy & Transportation 1,301 1,057 244 23 %
All Other Segment 24 11 13 118 %
Corporate Items and Eliminations (415) (1,008) 593
Machinery, Energy & Transportation 3,404 2,614 790 30 %
Financial Products Segment 293 232 61 26 %
Corporate Items and Eliminations (25) 25 (50)
Financial Products 268 257 11 4 %
Consolidating Adjustments (153) (140) (13)
Consolidated Operating Profit $3,519 $2,731 $788 29 %
Other Profit/Loss and Tax Items
-- Other income (expense) in the first quarter of 2024 was income of $156
million, compared with income of $32 million in the first quarter of
2023. The change was primarily driven by favorable impacts from foreign
currency exchange.
-- The effective tax rate for the first quarter of 2024 was 19.5% compared
to 26.9% for the first quarter of 2023. Excluding the discrete items
discussed below, the first quarter 2024 estimated annual tax rate was
22.5% compared with 23.0% for the first quarter of 2023.The 2024
estimated annual tax rate excludes the impact of nontaxable gains of $64
million for the divestiture of a non-U.S. mining entity along with a
related tax benefit of $54 million. The estimated annual tax rate in the
first quarter of 2023 excluded the impact of the nondeductible loss of
$586 million related to the divestiture of the company's Longwall
business. In addition, a discrete tax benefit of $38 million was
recorded in the first quarter of 2024, compared with a $32 million
benefit in the first quarter of 2023, for the settlement of stock-based
compensation awards with associated tax deductions in excess of
cumulative U.S. GAAP compensation expense.Please see a reconciliation of
GAAP to non-GAAP financial measures in the appendix on pages 12 and 13.
CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
First Sales Price Currency Inter- First
Quarter Quarter
$ %
2023 Volume Realization Segment 2024
Change Change
Total Sales $6,746 $(464) $199 $(22) $(35) $6,424 $(322) (5 %)
Sales by Geographic Region
First First
Quarter Quarter
$ %
2024 2023
Change Change
North America $3,833 $3,608 $225 6 %
Latin America 595 599 (4) (1 %)
EAME 996 1,336 (340) (25 %)
Asia/Pacific 993 1,161 (168) (14 %)
External Sales 6,417 6,704 (287) (4 %)
Inter-segment 7 42 (35) (83 %)
Total Sales $6,424 $6,746 $(322) (5 %)
Segment Profit
First First
Quarter Quarter %
2024 2023
Change Change
Segment Profit $1,764 $1,790 $(26) (1 %)
Segment Profit Margin 27.5 % 26.5 % 1.0 pts
Construction Industries' total sales were $6.424 billion in the first quarter of 2024, a decrease of $322 million, or 5%, compared with $6.746 billion in the first quarter of 2023. The decrease was primarily due to lower sales volume of $464 million, partially offset by favorable price realization of $199 million. The decrease in sales volume was mainly driven by lower sales of equipment to end users.
-- In North America, sales increased primarily due to favorable price
realization.
-- Sales in Latin America were about flat.
-- In EAME, sales decreased mainly due to lower sales volume. Lower sales
volume was primarily driven by lower sales of equipment to end users.
-- Sales decreased in Asia/Pacific primarily due to lower sales volume.
Lower sales volume was mainly driven by the impact from changes in
dealer inventories. Dealer inventory increased more during the first
quarter of 2023 than during the first quarter of 2024.
Construction Industries' profit was $1.764 billion in the first quarter of 2024, a decrease of $26 million, or 1%, compared with $1.790 billion in the first quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $278 million, higher selling, general and administrative (SG&A) and research and development (R&D) expenses of $26 million and other unfavorable segment items of $7 million, partially offset by favorable price realization of $199 million and favorable manufacturing costs of $86 million. Favorable manufacturing costs largely reflected lower freight.
RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
First Sales Price Currency Inter- First
Quarter Quarter
$ %
2023 Volume Realization Segment 2024
Change Change
Total Sales $3,427 $(425) $173 $(11) $29 $3,193 $(234) (7 %)
Sales by Geographic Region
First First
Quarter Quarter
$ %
2024 2023
Change Change
North America $1,264 $1,308 $(44) (3 %)
Latin America 476 474 2 - %
EAME 465 599 (134) (22 %)
Asia/Pacific 891 978 (87) (9 %)
External Sales 3,096 3,359 (263) (8 %)
Inter-segment 97 68 29 43 %
Total Sales $3,193 $3,427 $(234) (7 %)
Segment Profit
First First
Quarter Quarter %
2024 2023
Change Change
Segment Profit $730 $764 $(34) (4 %)
Segment Profit Margin 22.9 % 22.3 % 0.6 pts
Resource Industries' total sales were $3.193 billion in the first quarter of 2024, a decrease of $234 million, or 7%, compared with $3.427 billion in the first quarter of 2023. The decrease was primarily due to lower sales volume of $425 million, partially offset by favorable price realization of $173 million. The decrease in sales volume was mainly driven by lower sales of equipment to end users.
Resource Industries' profit was $730 million in the first quarter of 2024, a decrease of $34 million, or 4%, compared with $764 million in the first quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $217 million and other unfavorable segment items of $24 million, partially offset by favorable price realization of $173 million and favorable manufacturing costs of $38 million. Other unfavorable segment items primarily consisted of unfavorable currency impacts. Favorable manufacturing costs largely reflected lower freight.
ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
First Sales Price Currency Inter- First
Quarter Quarter
$ %
2023 Volume Realization Segment 2024
Change Change
Total Sales $6,254 $231 $202 $(1) $(5) $6,681 $427 7 %
Sales by Application
First First
Quarter Quarter
$ %
2024 2023
Change Change
Oil and Gas $1,568 $1,314 $254 19 %
Power Generation 1,618 1,284 334 26 %
Industrial 989 1,255 (266) (21 %)
Transportation 1,312 1,202 110 9 %
External Sales 5,487 5,055 432 9 %
Inter-segment 1,194 1,199 (5) - %
Total Sales $6,681 $6,254 $427 7 %
Segment Profit
First First
Quarter Quarter %
2024 2023
Change Change
Segment Profit $1,301 $1,057 $244 23 %
Segment Profit Margin 19.5 % 16.9 % 2.6 pts
Energy & Transportation's total sales were $6.681 billion in the first quarter of 2024, an increase of $427 million, or 7%, compared with $6.254 billion in the first quarter of 2023. Sales increased across all applications except Industrial. The increase in sales was primarily due to higher sales volume of $231 million and favorable price realization of $202 million.
-- Oil and Gas - Sales increased for turbines and turbine-related services.
Sales also increased in reciprocating engines used in gas compression
applications.
-- Power Generation - Sales increased in large reciprocating engines,
primarily data center applications.
-- Industrial - Sales decreased primarily in EAME and North America.
-- Transportation - Sales increased in rail services. International
locomotive deliveries were also higher.
Energy & Transportation's profit was $1.301 billion in the first quarter of 2024, an increase of $244 million, or 23%, compared with $1.057 billion in the first quarter of 2023. The increase was mainly due to favorable price realization of $202 million.
FINANCIAL PRODUCTS SEGMENT
(Millions of
dollars)
Revenues by Geographic Region
First Quarter First Quarter
$ %
2024 2023
Change Change
North America $659 $575 $84 15 %
Latin America 101 104 (3) (3 %)
EAME 123 114 9 8 %
Asia/Pacific 108 109 (1) (1 %)
Total Revenues $991 $902 $89 10 %
Segment Profit
First Quarter First Quarter %
2024 2023
Change Change
Segment Profit $293 $232 $61 26 %
Financial Products' segment revenues were $991 million in the first quarter of 2024, an increase of $89 million, or 10%, compared with $902 million in the first quarter of 2023. The increase was primarily due to a $69 million favorable impact from higher average financing rates across all regions and a $32 million favorable impact from higher average earning assets driven by North America.
Financial Products' segment profit was $293 million in the first quarter of 2024, an increase of $61 million, or 26%, compared with $232 million in the first quarter of 2023. The increase was mainly due to a $33 million insurance settlement and a $27 million favorable impact from equity securities.
At the end of the first quarter of 2024, past dues at Cat Financial were 1.78%, compared with 2.00% at the end of the first quarter of 2023. Write-offs, net of recoveries, were $55 million for the first quarter of 2024, compared with $10 million for the first quarter of 2023. As of March 31, 2024, Cat Financial's allowance for credit losses totaled $281 million, or 1.01% of finance receivables, compared with $331 million, or 1.18% of finance receivables at December 31, 2023.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $440 million in the first quarter of 2024, a decrease of $543 million from the first quarter of 2023, primarily driven by the absence of the impact of the divestiture of the company's Longwall business in 2023.
Notes
i. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.
ii. Sales of equipment to end users is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Thursday, April 25, 2024.
iii. Information on non-GAAP financial measures is included in the appendix on pages 12 and 13.
iv. Some amounts within this report are rounded to the millions or billions and may not add.
v. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Thursday, April 25, 2024, to discuss its 2024 first-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.
About Caterpillar
With 2023 sales and revenues of $67.1 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments - Construction Industries, Resource Industries and Energy & Transportation - and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.
Caterpillar's latest financial results are also available online:
https://investors.caterpillar.com/overview/default.aspx
https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)
Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.
The company believes it is important to separately quantify the profit impact of three significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring income related to the divestiture of a non-US mining entity, (ii) other restructuring income/costs and (iii) restructuring costs related to the divestiture of the company's Longwall business in 2023. The company does not consider these items indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2024, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans.
Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:
(Dollars in millions except per share data) Operating Operating Profit Provision Profit Profit per
Profit Profit Before (Benefit) for Share
Margin Taxes Income
Taxes
Three Months Ended March 31, 2024
- U.S. GAAP $3,519 22.3 % $3,532 $688 $2,856 $5.75
Restructuring (income) - non-US mining entity divestiture (64) (0.5) % (64) 54 (118) (0.24)
Other restructuring (income) costs 58 0.4 % 58 14 44 0.09
Three Months Ended March 31, 2024
- Adjusted $3,513 22.2 % $3,526 $756 $2,782 $5.60
Three Months Ended March 31, 2023
- U.S. GAAP $2,731 17.2 % $2,634 $708 $1,943 $3.74
Restructuring costs - Longwall divestiture 586 3.7 % 586 586 1.13
Other restructuring (income) costs 25 0.2 % 25 5 20 0.04
Three Months Ended March 31, 2023
- Adjusted $3,342 21.1 % $3,245 $713 $2,549 $4.91
The company believes it is important to separately disclose the annual effective tax rate, excluding discrete items for the results to be meaningful to readers. The annual effective tax rate, excluding discrete items for the three months ended March 31, 2024, and 2023 is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. These items consist of (i) restructuring income related to the divestiture of a non-US mining entity, (ii) restructuring costs related to the divestiture of the company's Longwall business in 2023 and (iii) settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.
A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below:
(Dollars in millions) Profit Before Provision Effective
Tax
Taxes (Benefit)
for Rate
Income Taxes
Three Months Ended March 31, 2024
- U.S. GAAP $3,532 $688 19.5 %
Restructuring (income) - non-US mining entity divestiture (64) 54
Excess stock-based compensation 38
Annual effective tax rate, excluding discrete items $3,468 $780 22.5 %
Excess stock-based compensation (38)
Other restructuring (income) costs 58 14
Three Months Ended March 31, 2024
- Adjusted $3,526 $756
Three Months Ended March 31, 2023
- U.S. GAAP $2,634 $708 26.9 %
Restructuring costs - Longwall divestiture 586
Excess stock-based compensation 32
Annual effective tax rate, excluding discrete items $3,220 $740 23.0 %
Excess stock-based compensation (32)
Other restructuring (income) costs 25 5
Three Months Ended March 31, 2023
- Adjusted $3,245 $713
Supplemental Consolidating Data
The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:
Consolidated - Caterpillar Inc. and its subsidiaries.
Machinery, Energy & Transportation (ME&T) - The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T's information relates to the design, manufacturing and marketing of its products.
Financial Products - The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.
Consolidating Adjustments - Eliminations of transactions between ME&T and Financial Products.
The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.
Pages 15 to 23 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.
Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)
Three Months Ended March
31,
2024 2023
Sales and revenues:
Sales of Machinery, Energy & Transportation $14,960 $15,099
Revenues of Financial Products 839 763
Total sales and revenues 15,799 15,862
Operating costs:
Cost of goods sold 9,662 10,103
Selling, general and administrative expenses 1,577 1,463
Research and development expenses 520 472
Interest expense of Financial Products 298 217
Other operating (income) expenses 223 876
Total operating costs 12,280 13,131
Operating profit 3,519 2,731
Interest expense excluding Financial Products 143 129
Other income (expense) 156 32
Consolidated profit before taxes 3,532 2,634
Provision (benefit) for income taxes 688 708
Profit of consolidated companies 2,844 1,926
Equity in profit (loss) of unconsolidated affiliated companies 10 16
Profit of consolidated and affiliated companies 2,854 1,942
Less: Profit (loss) attributable to noncontrolling interests (2) (1)
Profit (1) $2,856 $1,943
Profit per common share $5.78 $3.76
Profit per common share - diluted (2) $5.75 $3.74
Weighted-average common shares outstanding (millions)
- Basic 493.9 516.2
- Diluted (2) 496.9 519.4
1
Profit attributable to common shareholders.
2 Diluted by assumed exercise of stock-based compensation awards using the
treasury stock method.
Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)
March 31, December 31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $4,959 $6,978
Receivables - trade and other 9,296 9,310
Receivables - finance 9,446 9,510
Prepaid expenses and other current assets 3,010 4,586
Inventories 16,953 16,565
Total current assets 43,664 46,949
Property, plant and equipment - net 12,538 12,680
Long-term receivables - trade and other 1,200 1,238
Long-term receivables - finance 12,531 12,664
Noncurrent deferred and refundable income taxes 2,860 2,816
Intangible assets 516 564
Goodwill 5,277 5,308
Other assets 5,155 5,257
Total assets $83,741 $87,476
Liabilities
Current liabilities:
Short-term borrowings:
-- Machinery, Energy & Transportation
$ -
$ -
-- Financial Products 3,568 4,643
Accounts payable 7,778 7,906
Accrued expenses 4,821 4,958
Accrued wages, salaries and employee benefits 1,291 2,757
Customer advances 2,194 1,929
Dividends payable - 649
Other current liabilities 3,265 3,123
Long-term debt due within one year:
-- Machinery, Energy & Transportation 1,045 1,044
-- Financial Products 8,409 7,719
Total current liabilities 32,371 34,728
Long-term debt due after one year:
-- Machinery, Energy & Transportation 8,539 8,579
-- Financial Products 16,292 15,893
Liability for postemployment benefits 4,068 4,098
Other liabilities 4,826 4,675
Total liabilities 66,096 67,973
Shareholders' equity
Common stock 5,663 6,403
Treasury stock (40,039) (36,339)
Profit employed in the business 54,108 51,250
Accumulated other comprehensive income (loss) (2,093) (1,820)
Noncontrolling interests 6 9
Total shareholders' equity 17,645 19,503
Total liabilities and shareholders' equity $83,741 $87,476
Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Three Months Ended
March 31,
2024 2023
Cash flow from operating activities:
Profit of consolidated and affiliated companies $2,854 $1,942
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization 524 532
Provision (benefit) for deferred income taxes (54) (191)
(Gain) loss on divestiture (64) 572
Other (5) 117
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (81) (329)
Inventories (439) (1,403)
Accounts payable 203 477
Accrued expenses (38) 38
Accrued wages, salaries and employee benefits (1,454) (950)
Customer advances 279 365
Other assets - net 60 107
Other liabilities - net 267 296
Net cash provided by (used for) operating activities 2,052 1,573
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (500) (422)
Expenditures for equipment leased to others (236) (328)
Proceeds from disposals of leased assets and property, plant and equipment 155 184
Additions to finance receivables (3,256) (3,020)
Collections of finance receivables 3,140 3,169
Proceeds from sale of finance receivables 13 24
Investments and acquisitions (net of cash acquired) - (5)
Proceeds from sale of businesses and investments (net of cash sold) 42 (14)
Proceeds from maturities and sale of securities 1,867 239
Investments in securities (275) (536)
Other - net 8 26
Net cash provided by (used for) investing activities 958 (683)
Cash flow from financing activities:
Dividends paid (648) (620)
Common stock issued, including treasury shares reissued (8) (25)
Common shares repurchased (4,455) (400)
Proceeds from debt issued (original maturities greater than three months) 2,731 1,517
Payments on debt (original maturities greater than three months) (1,570) (1,475)
Short-term borrowings - net (original maturities three months or less) (1,050) (103)
Net cash provided by (used for) financing activities (5,000) (1,106)
Effect of exchange rate changes on cash (30) (1)
Increase (decrease) in cash, cash equivalents and restricted cash (2,020) (217)
Cash, cash equivalents and restricted cash at beginning of period 6,985 7,013
Cash, cash equivalents and restricted cash at end of period $4,965 $6,796
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended March 31, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $14,960 $14,960
$ -
$ -
Revenues of Financial Products 839 1,029 (190) (1)
Total sales and revenues 15,799 14,960 1,029 (190)
Operating costs:
Cost of goods sold 9,662 9,664 (2) (2)
Selling, general and administrative expenses 1,577 1,413 178 (14) (2)
Research and development expenses 520 520
Interest expense of Financial Products 298 298
Other operating (income) expenses 223 (41) 285 (21) (2)
Total operating costs 12,280 11,556 761 (37)
Operating profit 3,519 3,404 268 (153)
Interest expense excluding Financial Products 143 143
Other income (expense) 156 (20) 23 153 (3)
Consolidated profit before taxes 3,532 3,241 291
Provision (benefit) for income taxes 688 615 73
Profit of consolidated companies 2,844 2,626 218
Equity in profit (loss) of unconsolidated affiliated companies 10 10
Profit of consolidated and affiliated companies 2,854 2,636 218
Less: Profit (loss) attributable to noncontrolling interests (2) (3) 1
Profit 4 $2,856 $2,639 $217
$ -
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded between ME&T and Financial Products.
3 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as
dividends paid by Financial Products to ME&T.
4
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended March 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $15,099 $15,099
$ -
$ -
Revenues of Financial Products 763 935 (172) (1)
Total sales and revenues 15,862 15,099 935 (172)
Operating costs:
Cost of goods sold 10,103 10,104 (1) (2)
Selling, general and administrative expenses 1,463 1,320 158 (15) (2)
Research and development expenses 472 472
Interest expense of Financial Products 217 217
Other operating (income) expenses 876 589 303 (16) (2)
Total operating costs 13,131 12,485 678 (32)
Operating profit 2,731 2,614 257 (140)
Interest expense excluding Financial Products 129 129
Other income (expense) 32 (14) (19) 65 (3)
Consolidated profit before taxes 2,634 2,471 238 (75)
Provision (benefit) for income taxes 708 648 60
Profit of consolidated companies 1,926 1,823 178 (75)
Equity in profit (loss) of unconsolidated affiliated companies 16 19 (3) 4
Profit of consolidated and affiliated companies 1,942 1,842 178 (78)
Less: Profit (loss) attributable to noncontrolling interests (1) 2 (3) 5
Profit 6 $1,943 $1,842 $176 $(75)
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as
dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Financial Position
At March 31, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation
Assets
Current assets:
Cash and cash equivalents $4,959 $3,963 $996
$ -
Receivables - trade and other 9,296 3,814 658 4,824 1,2
Receivables - finance 9,446 14,509 (5,063) (2)
Prepaid expenses and other current assets 3,010 2,665 379 (34) (3)
Inventories 16,953 16,953
Total current assets 43,664 27,395 16,542 (273)
Property, plant and equipment - net 12,538 8,647 3,891
Long-term receivables - trade and other 1,200 538 57 605 1,2
Long-term receivables - finance 12,531 13,191 (660) (2)
Noncurrent deferred and refundable income taxes 2,860 3,382 138 (660) 4
Intangible assets 516 516
Goodwill 5,277 5,277
Other assets 5,155 4,081 2,117 (1,043) 5
Total assets $83,741 $49,836 $35,936 $(2,031)
Liabilities
Current liabilities:
Short-term borrowings $3,568
$ - $3,568
$ -
Accounts payable 7,778 7,699 337 (258) 6,7
Accrued expenses 4,821 4,287 534
Accrued wages, salaries and employee benefits 1,291 1,262 29
Customer advances 2,194 2,173 2 19 7
Other current liabilities 3,265 2,601 725 (61) 4,8
Long-term debt due within one year 9,454 1,045 8,409
Total current liabilities 32,371 19,067 13,604 (300)
Long-term debt due after one year 24,831 8,594 16,292 (55) 9
Liability for postemployment benefits 4,068 4,068
Other liabilities 4,826 3,979 1,553 (706) 4
Total liabilities 66,096 35,708 31,449 (1,061)
Shareholders' equity
Common stock 5,663 5,663 905 (905) 10
Treasury stock (40,039) (40,039)
Profit employed in the business 54,108 49,422 4,674 12 10
Accumulated other comprehensive income (loss) (2,093) (926) (1,167)
Noncontrolling interests 6 8 75 (77) 10
Total shareholders' equity 17,645 14,128 4,487 (970)
Total liabilities and shareholders' equity $83,741 $49,836 $35,936 $(2,031)
1
Elimination of receivables between ME&T and Financial Products.
2 Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products'
wholesale inventory receivables.
3
Elimination of ME&T's insurance premiums that are prepaid to Financial Products.
4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6
Elimination of payables between ME&T and Financial Products.
7
Reclassification of Financial Products' payables to accrued expenses or customer advances.
8
Elimination of prepaid insurance in Financial Products' other liabilities.
9
Elimination of debt between ME&T and Financial Products.
10
Eliminations associated with ME&T's investments in Financial Products' subsidiaries.
Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation
Assets
Current assets:
Cash and cash equivalents $6,978 $6,106 $872
$ -
Receivables - trade and other 9,310 3,971 570 4,769 1,2
Receivables - finance 9,510 14,499 (4,989) (2)
Prepaid expenses and other current assets 4,586 4,327 341 (82) (3)
Inventories 16,565 16,565
Total current assets 46,949 30,969 16,282 (302)
Property, plant and equipment - net 12,680 8,694 3,986
Long-term receivables - trade and other 1,238 565 85 588 1,2
Long-term receivables - finance 12,664 13,299 (635) (2)
Noncurrent deferred and refundable income taxes 2,816 3,360 148 (692) 4
Intangible assets 564 564
Goodwill 5,308 5,308
Other assets 5,257 4,218 2,082 (1,043) 5
Total assets $87,476 $53,678 $35,882 $(2,084)
Liabilities
Current liabilities:
Short-term borrowings $4,643
$ - $4,643
$ -
Accounts payable 7,906 7,827 314 (235) 6,7
Accrued expenses 4,958 4,361 597
Accrued wages, salaries and employee benefits 2,757 2,696 61
Customer advances 1,929 1,912 2 15 7
Dividends payable 649 649
Other current liabilities 3,123 2,583 647 (107) 4,8
Long-term debt due within one year 8,763 1,044 7,719
Total current liabilities 34,728 21,072 13,983 (327)
Long-term debt due after one year 24,472 8,626 15,893 (47) 9
Liability for postemployment benefits 4,098 4,098
Other liabilities 4,675 3,806 1,607 (738) 4
Total liabilities 67,973 37,602 31,483 (1,112)
Shareholders' equity
Common stock 6,403 6,403 905 (905) 10
Treasury stock (36,339) (36,339)
Profit employed in the business 51,250 46,783 4,457 10 10
Accumulated other comprehensive income (loss) (1,820) (783) (1,037)
Noncontrolling interests 9 12 74 (77) 10
Total shareholders' equity 19,503 16,076 4,399 (972)
Total liabilities and shareholders' equity $87,476 $53,678 $35,882 $(2,084)
1
Elimination of receivables between ME&T and Financial Products.
2 Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products'
wholesale inventory receivables.
3
Elimination of ME&T's insurance premiums that are prepaid to Financial Products.
4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6
Elimination of payables between ME&T and Financial Products.
7
Reclassification of Financial Products' payables to accrued expenses or customer advances.
8
Elimination of prepaid insurance in Financial Products' other liabilities.
9
Elimination of debt between ME&T and Financial Products.
10
Eliminations associated with ME&T's investments in Financial Products' subsidiaries.
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Three Months Ended March 31, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies $2,854 $2,636 $218
$ -
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization 524 328 196
Provision (benefit) for deferred income taxes (54) (23) (31)
(Gain) loss on divestiture (64) (64)
Other (5) (16) (120) 131 (1)
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (81) 111 (40) (152) 1,2
Inventories (439) (434) (5) (1)
Accounts payable 203 179 30 (6) (1)
Accrued expenses (38) (47) 9
Accrued wages, salaries and employee benefits (1,454) (1,422) (32)
Customer advances 279 279
Other assets - net 60 102 3 (45) (1)
Other liabilities - net 267 142 75 50 (1)
Net cash provided by (used for) operating activities 2,052 1,771 308 (27)
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (500) (493) (8) 1 (1)
Expenditures for equipment leased to others (236) (9) (233) 6 (1)
Proceeds from disposals of leased assets and property, plant and equipment 155 5 152 (2) (1)
Additions to finance receivables (3,256) (3,573) 317 (2)
Collections of finance receivables 3,140 3,572 (432) (2)
Net intercompany purchased receivables - (137) 137 (2)
Proceeds from sale of finance receivables 13 13
Net intercompany borrowings - 3 (3) (3)
Investments and acquisitions (net of cash acquired) -
Proceeds from sale of businesses and investments (net of cash sold) 42 42
Proceeds from maturities and sale of securities 1,867 1,797 70
Investments in securities (275) (148) (127)
Other - net 8 31 (23)
Net cash provided by (used for) investing activities 958 1,225 (291) 24
Cash flow from financing activities:
Dividends paid (648) (648)
Common stock issued, including treasury shares reissued (8) (8)
Common shares repurchased (4,455) (4,455)
Net intercompany borrowings - (3) 3 (3)
Proceeds from debt issued > 90 days 2,731 2,731
Payments on debt > 90 days (1,570) (6) (1,564)
Short-term borrowings - net < 90 days (1,050) (1,050)
Net cash provided by (used for) financing activities (5,000) (5,120) 117 3
Effect of exchange rate changes on cash (30) (20) (10)
Increase (decrease) in cash, cash equivalents and restricted cash (2,020) (2,144) 124
Cash, cash equivalents and restricted cash at beginning of period 6,985 6,111 874
Cash, cash equivalents and restricted cash at end of period $4,965 $3,967 $998
$ -
1 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated
reporting.
2 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that
arose from the sale of inventory.
3
Elimination of net proceeds and payments to/from ME&T and Financial Products.
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Three Months Ended March 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies $1,942 $1,842 $178 $(78) 1,5
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization 532 342 190
Provision (benefit) for deferred income taxes (191) (169) (22)
(Gain) loss on divestiture 572 572
Other 117 124 (143) 136 (2)
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (329) 205 14 (548) 2,3
Inventories (1,403) (1,402) (1) (2)
Accounts payable 477 465 34 (22) (2)
Accrued expenses 38 6 32
Accrued wages, salaries and employee benefits (950) (928) (22)
Customer advances 365 365
Other assets - net 107 223 4 (120) (2)
Other liabilities - net 296 134 37 125 (2)
Net cash provided by (used for) operating activities 1,573 1,779 302 (508)
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (422) (414) (9) 1 (2)
Expenditures for equipment leased to others (328) (330) 2 (2)
Proceeds from disposals of leased assets and property, plant and equipment 184 7 179 (2) (2)
Additions to finance receivables (3,020) (3,462) 442 (3)
Collections of finance receivables 3,169 3,437 (268) (3)
Net intercompany purchased receivables - (258) 258 (3)
Proceeds from sale of finance receivables 24 24
Net intercompany borrowings - 2 (2) 4
Investments and acquisitions (net of cash acquired) (5) (5)
Proceeds from sale of businesses and investments (net of cash sold) (14) (14)
Proceeds from sale of securities 239 162 77
Investments in securities (536) (433) (103)
Other - net 26 27 (1)
Net cash provided by (used for) investing activities (683) (670) (444) 431
Cash flow from financing activities:
Dividends paid (620) (620) (75) 75 5
Common stock issued, including treasury shares reissued (25) (25)
Common shares repurchased (400) (400)
Net intercompany borrowings - (2) 2 4
Proceeds from debt issued > 90 days 1,517 1,517
Payments on debt > 90 days (1,475) (90) (1,385)
Short-term borrowings - net < 90 days (103) (3) (100)
Net cash provided by (used for) financing activities (1,106) (1,140) (43) 77
Effect of exchange rate changes on cash (1) 4 (5)
Increase (decrease) in cash, cash equivalents and restricted cash (217) (27) (190)
Cash, cash equivalents and restricted cash at beginning of period 7,013 6,049 964
Cash, cash equivalents and restricted cash at end of period $6,796 $6,022 $774
$ -
1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T
subsidiaries.
2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated
reporting.
3 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that
arose from the sale of inventory.
4
Elimination of net proceeds and payments to/from ME&T and Financial Products.
5
Elimination of dividend activity between Financial Products and ME&T.
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SOURCE Caterpillar Inc.
