- First-quarter 2023 sales and revenues increased 17% to $15.9 billion
- First-quarter 2023 profit per share of $3.74; adjusted profit per share of $4.91
- Returned $1.0 billion to shareholders through dividends and share repurchases in the quarter
|
First Quarter |
|||
|
($ in billions except profit per share) |
2023 |
2022 |
|
|
Sales and Revenues |
$15.9 |
$13.6 |
|
|
Profit Per Share |
$3.74 |
$2.86 |
|
|
Adjusted Profit Per Share |
$4.91 |
$2.88 |
|
IRVING, Texas, April 27, 2023 /PRNewswire/ —
Caterpillar Inc. (NYSE: CAT) announced first-quarter 2023 sales and revenues of $15.9 billion, a 17% increase compared with $13.6 billion in the first quarter of 2022. The increase was primarily due to favorable price realization and higher sales volume.
Operating profit margin was 17.2% for the first quarter of 2023, compared with 13.7% for the first quarter of 2022. Adjusted operating profit margin was 21.1% for the first quarter of 2023, compared with 13.7% for the first quarter of 2022. First-quarter 2023 profit per share was $3.74, compared with first-quarter 2022 profit per share of $2.86. Adjusted profit per share in the first quarter of 2023 was $4.91, compared with first-quarter 2022 adjusted profit per share of $2.88. In the first quarter of 2023 and 2022, adjusted operating profit margin and adjusted profit per share excluded restructuring costs. First-quarter 2023 restructuring costs included the impact of the divestiture of the company’s Longwall business. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.
For the three months ended March 31, 2023, enterprise operating cash flow was $1.6 billion, and the company ended the first quarter with $6.8 billion of enterprise cash. In the quarter, the company paid dividends of $0.6 billion and repurchased $0.4 billion of Caterpillar common stock.
“I’d like to thank our global team for their strong operational performance while serving healthy demand during the first quarter. We achieved double-digit top-line growth and record adjusted profit per share while generating strong ME&T free cash flow,” said Jim Umpleby, Chairman and CEO. “Our team remains focused on supporting our customers as we execute our strategy for long-term profitable growth.”
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
First Quarter 2023 vs. First Quarter 2022
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar first-quarter 2023 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2022 (at left) and the first quarter of 2023 (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 2023 were $15.862 billion, an increase of $2.273 billion, or 17%, compared with $13.589 billion in the first quarter of 2022. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by higher sales of equipment to end users, partially offset by lower services sales volume.
Sales were higher across the three primary segments.
|
Sales and Revenues by Segment |
|||||||||||||||
|
(Millions of dollars) |
First |
Sales Volume |
Price Realization |
Currency |
Inter- |
First |
$ Change |
% Change |
|||||||
|
Construction Industries |
$ 6,115 |
$ (173) |
$ 942 |
$ (151) |
$ 13 |
$ 6,746 |
$ 631 |
10 % |
|||||||
|
Resource Industries |
2,830 |
157 |
472 |
(29) |
(3) |
3,427 |
597 |
21 % |
|||||||
|
Energy & Transportation |
5,038 |
621 |
480 |
(78) |
193 |
6,254 |
1,216 |
24 % |
|||||||
|
All Other Segment |
118 |
(2) |
— |
(1) |
(4) |
111 |
(7) |
(6 %) |
|||||||
|
Corporate Items and Eliminations |
(1,215) |
(26) |
— |
1 |
(199) |
(1,439) |
(224) |
||||||||
|
Machinery, Energy & Transportation |
12,886 |
577 |
1,894 |
(258) |
— |
15,099 |
2,213 |
17 % |
|||||||
|
Financial Products Segment |
783 |
— |
— |
— |
119 |
902 |
119 |
15 % |
|||||||
|
Corporate Items and Eliminations |
(80) |
— |
— |
— |
(59) |
(139) |
(59) |
||||||||
|
Financial Products Revenues |
703 |
— |
— |
— |
60 |
763 |
60 |
9 % |
|||||||
|
Consolidated Sales and Revenues |
$ 13,589 |
$ 577 |
$ 1,894 |
$ (258) |
$ 60 |
$ 15,862 |
$ 2,273 |
17 % |
|||||||
|
Sales and Revenues by Geographic Region |
|||||||||||||||||||||||||||
|
North America |
Latin America |
EAME |
Asia/Pacific |
External Sales |
Inter-Segment |
Total Sales |
|||||||||||||||||||||
|
(Millions of dollars) |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
|||||||||||||
|
First Quarter 2023 |
|||||||||||||||||||||||||||
|
Construction Industries |
$ 3,608 |
33 % |
$ 599 |
(4 %) |
$ 1,336 |
5 % |
$ 1,161 |
(21 %) |
$ 6,704 |
10 % |
$ 42 |
45 % |
$ 6,746 |
10 % |
|||||||||||||
|
Resource Industries |
1,308 |
28 % |
474 |
19 % |
599 |
1 % |
978 |
31 % |
3,359 |
22 % |
68 |
(4 %) |
3,427 |
21 % |
|||||||||||||
|
Energy & Transportation |
2,572 |
33 % |
380 |
23 % |
1,384 |
17 % |
719 |
20 % |
5,055 |
25 % |
1,199 |
19 % |
6,254 |
24 % |
|||||||||||||
|
All Other Segment |
18 |
— % |
— |
— % |
4 |
(20 %) |
13 |
(19 %) |
35 |
(10 %) |
76 |
(4 %) |
111 |
(6 %) |
|||||||||||||
|
Corporate Items and Eliminations |
(48) |
— |
(1) |
(5) |
(54) |
(1,385) |
(1,439) |
||||||||||||||||||||
|
Machinery, Energy & Transportation |
7,458 |
32 % |
1,453 |
9 % |
3,322 |
9 % |
2,866 |
2 % |
15,099 |
17 % |
— |
— % |
15,099 |
17 % |
|||||||||||||
|
Financial Products Segment |
575 |
14 % |
104 |
42 % |
114 |
19 % |
109 |
(2 %) |
902 |
15 % |
— |
— % |
902 |
15 % |
|||||||||||||
|
Corporate Items and Eliminations |
(83) |
(18) |
(18) |
(20) |
(139) |
— |
(139) |
||||||||||||||||||||
|
Financial Products Revenues |
492 |
5 % |
86 |
54 % |
96 |
10 % |
89 |
(4 %) |
763 |
9 % |
— |
— % |
763 |
9 % |
|||||||||||||
|
Consolidated Sales and Revenues |
$ 7,950 |
30 % |
$ 1,539 |
10 % |
$ 3,418 |
9 % |
$ 2,955 |
1 % |
$ 15,862 |
17 % |
$ — |
— % |
$ 15,862 |
17 % |
|||||||||||||
|
First Quarter 2022 |
|||||||||||||||||||||||||||
|
Construction Industries |
$ 2,720 |
$ 627 |
$ 1,277 |
$ 1,462 |
$ 6,086 |
$ 29 |
$ 6,115 |
||||||||||||||||||||
|
Resource Industries |
1,018 |
399 |
594 |
748 |
2,759 |
71 |
2,830 |
||||||||||||||||||||
|
Energy & Transportation |
1,938 |
310 |
1,184 |
600 |
4,032 |
1,006 |
5,038 |
||||||||||||||||||||
|
All Other Segment |
18 |
— |
5 |
16 |
39 |
79 |
118 |
||||||||||||||||||||
|
Corporate Items and Eliminations |
(24) |
1 |
(2) |
(5) |
(30) |
(1,185) |
(1,215) |
||||||||||||||||||||
|
Machinery, Energy & Transportation |
5,670 |
1,337 |
3,058 |
2,821 |
12,886 |
— |
12,886 |
||||||||||||||||||||
|
Financial Products Segment |
503 |
73 |
96 |
111 |
783 |
— |
783 |
||||||||||||||||||||
|
Corporate Items and Eliminations |
(36) |
(17) |
(9) |
(18) |
(80) |
— |
(80) |
||||||||||||||||||||
|
Financial Products Revenues |
467 |
56 |
87 |
93 |
703 |
— |
703 |
||||||||||||||||||||
|
Consolidated Sales and Revenues |
$ 6,137 |
$ 1,393 |
$ 3,145 |
$ 2,914 |
$ 13,589 |
$ — |
$ 13,589 |
||||||||||||||||||||
Consolidated Operating Profit
Consolidated Operating Profit Comparison
First Quarter 2023 vs. First Quarter 2022
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar first-quarter 2023 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the first quarter of 2022 (at left) and the first quarter of 2023 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s board of directors and employees. The bar titled Longwall Divestiture is included in total restructuring costs. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation’s other operating (income) expenses.
Operating profit for the first quarter of 2023 was $2.731 billion, an increase of $876 million, or 47%, compared with $1.855 billion in the first quarter of 2022. The increase was primarily due to favorable price realization and higher sales volume, partially offset by the impact of the divestiture of the company’s Longwall business and higher manufacturing costs. Unfavorable manufacturing costs largely reflected higher material costs.
In the first quarter of 2023, the divestiture of the company’s Longwall business was finalized, resulting in an unfavorable impact to operating profit of $586 million, primarily a non-cash item driven by the release of accumulated foreign currency translation. This impact was included in total restructuring costs.
|
Profit by Segment |
|||||||
|
(Millions of dollars) |
First Quarter |
First Quarter |
$ Change |
% Change |
|||
|
Construction Industries |
$ 1,790 |
$ 1,057 |
$ 733 |
69 % |
|||
|
Resource Industries |
764 |
361 |
403 |
112 % |
|||
|
Energy & Transportation |
1,057 |
538 |
519 |
96 % |
|||
|
All Other Segment |
11 |
3 |
8 |
267 % |
|||
|
Corporate Items and Eliminations |
(1,008) |
(244) |
(764) |
||||
|
Machinery, Energy & Transportation |
2,614 |
1,715 |
899 |
52 % |
|||
|
Financial Products Segment |
232 |
238 |
(6) |
(3 %) |
|||
|
Corporate Items and Eliminations |
25 |
(17) |
42 |
||||
|
Financial Products |
257 |
221 |
36 |
16 % |
|||
|
Consolidating Adjustments |
(140) |
(81) |
(59) |
||||
|
Consolidated Operating Profit |
$ 2,731 |
$ 1,855 |
$ 876 |
47 % |
|||
Other Profit/Loss and Tax Items
- Other income (expense) in the first quarter of 2023 was income of $32 million, compared with income of $253 million in the first quarter of 2022. The change was primarily driven by unfavorable impacts from foreign currency exchange, commodity hedges and pension and other postemployment benefit (OPEB) plan costs, all partially offset by higher investment and interest income.
- The provision for income taxes for the first quarter of 2023 reflected an estimated annual global tax rate of 23%, compared with 24% for the first quarter of 2022, excluding the discrete items discussed below. The comparative tax rate for full-year 2022 was approximately 23%.
The estimated annual global tax rate excludes the impact of the nondeductible loss of $586 million related to the divestiture of the company’s Longwall business in the first quarter of 2023. In addition, a discrete tax benefit of $32 million was recorded in the first quarter of 2023, compared with a $12 million benefit in the first quarter of 2022, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.
|
CONSTRUCTION INDUSTRIES |
||||||||||||||||
|
(Millions of dollars) |
||||||||||||||||
|
Segment Sales |
||||||||||||||||
|
First Quarter |
Sales |
Price |
Currency |
Inter- |
First Quarter |
$ Change |
% Change |
|||||||||
|
Total Sales |
$ 6,115 |
$ (173) |
$ 942 |
$ (151) |
$ 13 |
$ 6,746 |
$ 631 |
10 % |
||||||||
|
Sales by Geographic Region |
||||||||||||||||
|
First Quarter |
First Quarter |
$ Change |
% Change |
|||||||||||||
|
North America |
$ 3,608 |
$ 2,720 |
$ 888 |
33 % |
||||||||||||
|
Latin America |
599 |
627 |
(28) |
(4 %) |
||||||||||||
|
EAME |
1,336 |
1,277 |
59 |
5 % |
||||||||||||
|
Asia/Pacific |
1,161 |
1,462 |
(301) |
(21 %) |
||||||||||||
|
External Sales |
6,704 |
6,086 |
618 |
10 % |
||||||||||||
|
Inter-segment |
42 |
29 |
13 |
45 % |
||||||||||||
|
Total Sales |
$ 6,746 |
$ 6,115 |
$ 631 |
10 % |
||||||||||||
|
Segment Profit |
||||||||||||||||
|
First Quarter |
First Quarter |
Change |
% Change |
|||||||||||||
|
Segment Profit |
$ 1,790 |
$ 1,057 |
$ 733 |
69 % |
||||||||||||
|
Segment Profit Margin |
26.5 % |
17.3 % |
9.2 pts |
|||||||||||||
Construction Industries’ total sales were $6.746 billion in the first quarter of 2023, an increase of $631 million, or 10%, compared with $6.115 billion in the first quarter of 2022. The increase was due to favorable price realization, partially offset by lower sales volume and unfavorable currency impacts primarily related to the Japanese yen, euro and Chinese yuan. The decrease in sales volume was driven by the impact from changes in dealer inventories. Dealer inventory increased more during the first quarter of 2022 than during the first quarter of 2023.
- In North America, sales increased due to favorable price realization and higher sales volume. Higher sales volume was 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 2022.
- Sales decreased in Latin America primarily due to lower sales volume, partially offset by favorable price realization. Lower sales volume was driven by the impact from changes in dealer inventories. Dealer inventory increased during the first quarter of 2022, compared with a decrease during the first quarter of 2023.
- In EAME, sales increased primarily due to favorable price realization, partially offset by unfavorable currency impacts, mainly related to the euro.
- Sales decreased in Asia/Pacific primarily due to lower sales volume and unfavorable currency impacts, primarily related to the Japanese yen and Chinese yuan, partially offset by favorable price realization. Lower sales volume was driven by the impact from changes in dealer inventories and lower sales of equipment to end users. Dealer inventory increased more during the first quarter of 2022 than during the first quarter of 2023.
Construction Industries’ profit was $1.790 billion in the first quarter of 2023, an increase of $733 million, or 69%, compared with $1.057 billion in the first quarter of 2022. The increase was mainly due to favorable price realization, partially offset by lower sales volume, including an unfavorable mix of products, and unfavorable manufacturing costs. Unfavorable manufacturing costs largely reflected higher material costs.
|
RESOURCE INDUSTRIES |
||||||||||||||||
|
(Millions of dollars) |
||||||||||||||||
|
Segment Sales |
||||||||||||||||
|
First Quarter |
Sales |
Price |
Currency |
Inter- |
First Quarter |
$ Change |
% Change |
|||||||||
|
Total Sales |
$ 2,830 |
$ 157 |
$ 472 |
$ (29) |
$ (3) |
$ 3,427 |
$ 597 |
21 % |
||||||||
|
Sales by Geographic Region |
||||||||||||||||
|
First Quarter |
First Quarter |
$ Change |
% Change |
|||||||||||||
|
North America |
$ 1,308 |
$ 1,018 |
$ 290 |
28 % |
||||||||||||
|
Latin America |
474 |
399 |
75 |
19 % |
||||||||||||
|
EAME |
599 |
594 |
5 |
1 % |
||||||||||||
|
Asia/Pacific |
978 |
748 |
230 |
31 % |
||||||||||||
|
External Sales |
3,359 |
2,759 |
600 |
22 % |
||||||||||||
|
Inter-segment |
68 |
71 |
(3) |
(4 %) |
||||||||||||
|
Total Sales |
$ 3,427 |
$ 2,830 |
$ 597 |
21 % |
||||||||||||
|
Segment Profit |
||||||||||||||||
|
First Quarter |
First Quarter |
Change |
% Change |
|||||||||||||
|
Segment Profit |
$ 764 |
$ 361 |
$ 403 |
112 % |
||||||||||||
|
Segment Profit Margin |
22.3 % |
12.8 % |
9.5 pts |
|||||||||||||
Resource Industries’ total sales were $3.427 billion in the first quarter of 2023, an increase of $597 million, or 21%, compared with $2.830 billion in the first quarter of 2022. The increase was primarily due to favorable price realization and higher sales volume. The increase in sales volume was due to higher sales of equipment to end users, partially offset by lower aftermarket parts sales volume.
Resource Industries’ profit was $764 million in the first quarter of 2023, an increase of $403 million, or 112%, compared with $361 million in the first quarter of 2022. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs. Unfavorable manufacturing costs largely reflected higher material costs.
|
ENERGY & TRANSPORTATION |
||||||||||||||||
|
(Millions of dollars) |
||||||||||||||||
|
Segment Sales |
||||||||||||||||
|
First Quarter |
Sales |
Price |
Currency |
Inter- |
First Quarter |
$ Change |
% Change |
|||||||||
|
Total Sales |
$ 5,038 |
$ 621 |
$ 480 |
$ (78) |
$ 193 |
$ 6,254 |
$ 1,216 |
24 % |
||||||||
|
Sales by Application |
||||||||||||||||
|
First Quarter |
First Quarter |
$ Change |
% Change |
|||||||||||||
|
Oil and Gas |
$ 1,314 |
$ 948 |
$ 366 |
39 % |
||||||||||||
|
Power Generation |
1,284 |
1,012 |
272 |
27 % |
||||||||||||
|
Industrial |
1,255 |
1,020 |
235 |
23 % |
||||||||||||
|
Transportation |
1,202 |
1,052 |
150 |
14 % |
||||||||||||
|
External Sales |
5,055 |
4,032 |
1,023 |
25 % |
||||||||||||
|
Inter-segment |
1,199 |
1,006 |
193 |
19 % |
||||||||||||
|
Total Sales |
$ 6,254 |
$ 5,038 |
$ 1,216 |
24 % |
||||||||||||
|
Segment Profit |
||||||||||||||||
|
First Quarter |
First Quarter |
Change |
% Change |
|||||||||||||
|
Segment Profit |
$ 1,057 |
$ 538 |
$ 519 |
96 % |
||||||||||||
|
Segment Profit Margin |
16.9 % |
10.7 % |
6.2 pts |
|||||||||||||
Energy & Transportation’s total sales were $6.254 billion in the first quarter of 2023, an increase of $1.216 billion, or 24%, compared with $5.038 billion in the first quarter of 2022. Sales increased across all applications and inter-segment sales. The increase in sales was primarily due to higher sales volume and favorable price realization.
- Oil and Gas – Sales increased for reciprocating engine aftermarket parts and engines used in well servicing and gas compression applications. Turbines and turbine-related services increased as well.
- Power Generation – Sales increased in large reciprocating engines, primarily data center applications, and small reciprocating engines. Turbines and turbine-related services increased as well.
- Industrial – Sales were up across all regions.
- Transportation – Sales increased in rail services and marine. International locomotive deliveries were also higher.
Energy & Transportation’s profit was $1.057 billion in the first quarter of 2023, an increase of $519 million, or 96%, compared with $538 million in the first quarter of 2022. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs were driven by higher material costs. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives.
|
FINANCIAL PRODUCTS SEGMENT |
||||||||||||||||
|
(Millions of dollars) |
||||||||||||||||
|
Revenues by Geographic Region |
||||||||||||||||
|
First Quarter |
First Quarter |
$ Change |
% Change |
|||||||||||||
|
North America |
$ 575 |
$ 503 |
$ 72 |
14 % |
||||||||||||
|
Latin America |
104 |
73 |
31 |
42 % |
||||||||||||
|
EAME |
114 |
96 |
18 |
19 % |
||||||||||||
|
Asia/Pacific |
109 |
111 |
(2) |
(2 %) |
||||||||||||
|
Total Revenues |
$ 902 |
$ 783 |
$ 119 |
15 % |
||||||||||||
|
Segment Profit |
||||||||||||||||
|
First Quarter |
First Quarter |
Change |
% Change |
|||||||||||||
|
Segment Profit |
$ 232 |
$ 238 |
$ (6) |
(3 %) |
||||||||||||
Financial Products’ segment revenues were $902 million in the first quarter of 2023, an increase of $119 million, or 15%, compared with $783 million in the first quarter of 2022. The increase was primarily due to higher average financing rates across all regions.
Financial Products’ segment profit was $232 million in the first quarter of 2023, a decrease of $6 million, or 3%, compared with $238 million in the first quarter of 2022. The decrease was mainly due to unfavorable impacts from equity securities, currency exchange losses and mark-to-market adjustments on derivative contracts. These unfavorable impacts were partially offset by higher net yield on average earning assets and lower provision for credit losses at Cat Financial.
At the end of the first quarter of 2023, past dues at Cat Financial were 2.00%, compared with 2.05% at the end of the first quarter of 2022. Write-offs, net of recoveries, were $10 million for the first quarter of 2023, compared with $8 million for the first quarter of 2022. As of March 31, 2023, Cat Financial’s allowance for credit losses totaled $348 million, or 1.27% of finance receivables, compared with $346 million, or 1.29% of finance receivables at December 31, 2022.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $983 million in the first quarter of 2023, an increase of $722 million from the first quarter of 2022, primarily driven by the impact of the divestiture of the company’s Longwall business and increased expenses due to timing differences.
In the first quarter of 2023, the divestiture of the company’s Longwall business was finalized, resulting in an unfavorable impact to operating profit of $586 million, primarily a non-cash item driven by the release of accumulated foreign currency translation. This impact was included in total restructuring costs.
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 27, 2023.
iii. Information on non-GAAP financial measures is included in the appendix on page 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 27, 2023, to discuss its 2023 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 2022 sales and revenues of $59.4 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 two significant items in order for the company’s results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of the company’s Longwall business and (ii) other restructuring costs. 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 2023, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans along with any other discrete items.
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 |
Effective |
Profit |
Profit per |
|||||||
|
Three Months Ended March 31, 2023 – U.S. GAAP |
$ 2,731 |
17.2 % |
$ 2,634 |
$ 708 |
26.9 % |
$ 1,943 |
$ 3.74 |
|||||||
|
Restructuring costs – Longwall divestiture |
586 |
3.7 % |
586 |
— |
— % |
586 |
1.13 |
|||||||
|
Other restructuring costs |
25 |
0.2 % |
25 |
5 |
20.0 % |
20 |
0.04 |
|||||||
|
Three Months Ended March 31, 2023 – Adjusted |
$ 3,342 |
21.1 % |
$ 3,245 |
$ 713 |
22.0 % |
$ 2,549 |
$ 4.91 |
|||||||
|
Three Months Ended March 31, 2022 – U.S. GAAP |
$ 1,855 |
13.7 % |
$ 1,999 |
$ 469 |
23.4 % |
$ 1,537 |
$ 2.86 |
|||||||
|
Restructuring costs |
13 |
0.1 % |
13 |
2 |
13.0 % |
11 |
0.02 |
|||||||
|
Three Months Ended March 31, 2022 – Adjusted |
$ 1,868 |
13.7 % |
$ 2,012 |
$ 471 |
23.4 % |
$ 1,548 |
$ 2.88 |
|||||||
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 14 to 22 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 |
|||
|
2023 |
2022 |
||
|
Sales and revenues: |
|||
|
Sales of Machinery, Energy & Transportation |
$ 15,099 |
$ 12,886 |
|
|
Revenues of Financial Products |
763 |
703 |
|
|
Total sales and revenues |
15,862 |
13,589 |
|
|
Operating costs: |
|||
|
Cost of goods sold |
10,103 |
9,559 |
|
|
Selling, general and administrative expenses |
1,463 |
1,346 |
|
|
Research and development expenses |
472 |
457 |
|
|
Interest expense of Financial Products |
217 |
106 |
|
|
Other operating (income) expenses |
876 |
266 |
|
|
Total operating costs |
13,131 |
11,734 |
|
|
Operating profit |
2,731 |
1,855 |
|
|
Interest expense excluding Financial Products |
129 |
109 |
|
|
Other income (expense) |
32 |
253 |
|
|
Consolidated profit before taxes |
2,634 |
1,999 |
|
|
Provision (benefit) for income taxes |
708 |
469 |
|
|
Profit of consolidated companies |
1,926 |
1,530 |
|
|
Equity in profit (loss) of unconsolidated affiliated companies |
16 |
7 |
|
|
Profit of consolidated and affiliated companies |
1,942 |
1,537 |
|
|
Less: Profit (loss) attributable to noncontrolling interests |
(1) |
— |
|
|
Profit 1 |
$ 1,943 |
$ 1,537 |
|
|
Profit per common share |
$ 3.76 |
$ 2.88 |
|
|
Profit per common share — diluted 2 |
$ 3.74 |
$ 2.86 |
|
|
Weighted-average common shares outstanding (millions) |
|||
|
– Basic |
516.2 |
534.5 |
|
|
– Diluted 2 |
519.4 |
538.3 |
|
|
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, |
||
|
Assets |
|||
|
Current assets: |
|||
|
Cash and cash equivalents |
$ 6,789 |
$ 7,004 |
|
|
Receivables – trade and other |
9,230 |
8,856 |
|
|
Receivables – finance |
9,119 |
9,013 |
|
|
Prepaid expenses and other current assets |
2,889 |
2,642 |
|
|
Inventories |
17,633 |
16,270 |
|
|
Total current assets |
45,660 |
43,785 |
|
|
Property, plant and equipment – net |
11,973 |
12,028 |
|
|
Long-term receivables – trade and other |
1,209 |
1,265 |
|
|
Long-term receivables – finance |
11,845 |
12,013 |
|
|
Noncurrent deferred and refundable income taxes |
2,405 |
2,213 |
|
|
Intangible assets |
694 |
758 |
|
|
Goodwill |
5,309 |
5,288 |
|
|
Other assets |
4,554 |
4,593 |
|
|
Total assets |
$ 83,649 |
$ 81,943 |
|
|
Liabilities |
|||
|
Current liabilities: |
|||
|
Short-term borrowings: |
|||
|
— Machinery, Energy & Transportation |
$ — |
$ 3 |
|
|
— Financial Products |
5,841 |
5,954 |
|
|
Accounts payable |
8,951 |
8,689 |
|
|
Accrued expenses |
4,121 |
4,080 |
|
|
Accrued wages, salaries and employee benefits |
1,368 |
2,313 |
|
|
Customer advances |
2,202 |
1,860 |
|
|
Dividends payable |
— |
620 |
|
|
Other current liabilities |
3,035 |
2,690 |
|
|
Long-term debt due within one year: |
|||
|
— Machinery, Energy & Transportation |
37 |
120 |
|
|
— Financial Products |
6,287 |
5,202 |
|
|
Total current liabilities |
31,842 |
31,531 |
|
|
Long-term debt due after one year: |
|||
|
— Machinery, Energy & Transportation |
9,558 |
9,498 |
|
|
— Financial Products |
15,315 |
16,216 |
|
|
Liability for postemployment benefits |
4,069 |
4,203 |
|
|
Other liabilities |
4,695 |
4,604 |
|
|
Total liabilities |
65,479 |
66,052 |
|
|
Shareholders’ equity |
|||
|
Common stock |
6,546 |
6,560 |
|
|
Treasury stock |
(32,108) |
(31,748) |
|
|
Profit employed in the business |
45,457 |
43,514 |
|
|
Accumulated other comprehensive income (loss) |
(1,746) |
(2,457) |
|
|
Noncontrolling interests |
21 |
22 |
|
|
Total shareholders’ equity |
18,170 |
15,891 |
|
|
Total liabilities and shareholders’ equity |
$ 83,649 |
$ 81,943 |
|
|
Caterpillar Inc. Condensed Consolidated Statement of Cash Flow (Unaudited) (Millions of dollars) |
|||
|
Three Months Ended March 31, |
|||
|
2023 |
2022 |
||
|
Cash flow from operating activities: |
|||
|
Profit of consolidated and affiliated companies |
$ 1,942 |
$ 1,537 |
|
|
Adjustments for non-cash items: |
|||
|
Depreciation and amortization |
532 |
557 |
|
|
Provision (benefit) for deferred income taxes |
(191) |
(99) |
|
|
Loss on divestiture |
572 |
— |
|
|
Other |
117 |
(52) |
|
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
|||
|
Receivables – trade and other |
(329) |
(372) |
|
|
Inventories |
(1,403) |
(1,032) |
|
|
Accounts payable |
477 |
452 |
|
|
Accrued expenses |
38 |
(74) |
|
|
Accrued wages, salaries and employee benefits |
(950) |
(965) |
|
|
Customer advances |
365 |
311 |
|
|
Other assets – net |
107 |
99 |
|
|
Other liabilities – net |
296 |
(49) |
|
|
Net cash provided by (used for) operating activities |
1,573 |
313 |
|
|
Cash flow from investing activities: |
|||
|
Capital expenditures – excluding equipment leased to others |
(422) |
(346) |
|
|
Expenditures for equipment leased to others |
(328) |
(333) |
|
|
Proceeds from disposals of leased assets and property, plant and equipment |
184 |
269 |
|
|
Additions to finance receivables |
(3,020) |
(2,988) |
|
|
Collections of finance receivables |
3,169 |
2,966 |
|
|
Proceeds from sale of finance receivables |
24 |
9 |
|
|
Investments and acquisitions (net of cash acquired) |
(5) |
(8) |
|
|
Proceeds from sale of businesses and investments (net of cash sold) |
(14) |
— |
|
|
Proceeds from sale of securities |
239 |
571 |
|
|
Investments in securities |
(536) |
(1,438) |
|
|
Other – net |
26 |
(15) |
|
|
Net cash provided by (used for) investing activities |
(683) |
(1,313) |
|
|
Cash flow from financing activities: |
|||
|
Dividends paid |
(620) |
(595) |
|
|
Common stock issued, including treasury shares reissued |
(25) |
(28) |
|
|
Common shares repurchased |
(400) |
(820) |
|
|
Proceeds from debt issued (original maturities greater than three months) |
1,517 |
2,131 |
|
|
Payments on debt (original maturities greater than three months) |
(1,475) |
(1,387) |
|
|
Short-term borrowings – net (original maturities three months or less) |
(103) |
(1,016) |
|
|
Net cash provided by (used for) financing activities |
(1,106) |
(1,715) |
|
|
Effect of exchange rate changes on cash |
(1) |
(16) |
|
|
Increase (decrease) in cash, cash equivalents and restricted cash |
(217) |
(2,731) |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
7,013 |
9,263 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ 6,796 |
$ 6,532 |
|
|
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, 2023 (Unaudited) (Millions of dollars) |
||||||||
|
Supplemental Consolidating Data |
||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating 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 Results of Operations For the Three Months Ended March 31, 2022 (Unaudited) (Millions of dollars) |
||||||||
|
Supplemental Consolidating Data |
||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
|||||
|
Sales and revenues: |
||||||||
|
Sales of Machinery, Energy & Transportation |
$ 12,886 |
$ 12,886 |
$ — |
$ — |
||||
|
Revenues of Financial Products |
703 |
— |
813 |
(110) |
1 |
|||
|
Total sales and revenues |
13,589 |
12,886 |
813 |
(110) |
||||
|
Operating costs: |
||||||||
|
Cost of goods sold |
9,559 |
9,560 |
— |
(1) |
2 |
|||
|
Selling, general and administrative expenses |
1,346 |
1,182 |
172 |
(8) |
2 |
|||
|
Research and development expenses |
457 |
457 |
— |
— |
||||
|
Interest expense of Financial Products |
106 |
— |
106 |
— |
||||
|
Other operating (income) expenses |
266 |
(28) |
314 |
(20) |
2 |
|||
|
Total operating costs |
11,734 |
11,171 |
592 |
(29) |
||||
|
Operating profit |
1,855 |
1,715 |
221 |
(81) |
||||
|
Interest expense excluding Financial Products |
109 |
109 |
— |
— |
||||
|
Other income (expense) |
253 |
157 |
15 |
81 |
3 |
|||
|
Consolidated profit before taxes |
1,999 |
1,763 |
236 |
— |
||||
|
Provision (benefit) for income taxes |
469 |
412 |
57 |
— |
||||
|
Profit of consolidated companies |
1,530 |
1,351 |
179 |
— |
||||
|
Equity in profit (loss) of unconsolidated affiliated companies |
7 |
8 |
— |
(1) |
4 |
|||
|
Profit of consolidated and affiliated companies |
1,537 |
1,359 |
179 |
(1) |
||||
|
Less: Profit (loss) attributable to noncontrolling interests |
— |
— |
1 |
(1) |
5 |
|||
|
Profit 6 |
$ 1,537 |
$ 1,359 |
$ 178 |
$ — |
||||
|
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, 2023 (Unaudited) (Millions of dollars) |
||||||||
|
Supplemental Consolidating Data |
||||||||
|
Consolidated |
Machinery, Energy & Transportation |
Financial Products |
Consolidating Adjustments |
|||||
|
Assets |
||||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ 6,789 |
$ 6,017 |
$ 772 |
$ — |
||||
|
Receivables – trade and other |
9,230 |
3,481 |
477 |
5,272 |
1,2 |
|||
|
Receivables – finance |
9,119 |
— |
14,655 |
(5,536) |
2 |
|||
|
Prepaid expenses and other current assets |
2,889 |
2,629 |
289 |
(29) |
3 |
|||
|
Inventories |
17,633 |
17,633 |
— |
— |
||||
|
Total current assets |
45,660 |
29,760 |
16,193 |
(293) |
||||
|
Property, plant and equipment – net |
11,973 |
8,090 |
3,883 |
— |
||||
|
Long-term receivables – trade and other |
1,209 |
463 |
276 |
470 |
1,2 |
|||
|
Long-term receivables – finance |
11,845 |
— |
12,346 |
(501) |
2 |
|||
|
Noncurrent deferred and refundable income taxes |
2,405 |
2,923 |
118 |
(636) |
4 |
|||
|
Intangible assets |
694 |
694 |
— |
— |
||||
|
Goodwill |
5,309 |
5,309 |
— |
— |
||||
|
Other assets |
4,554 |
3,795 |
1,940 |
(1,181) |
5 |
|||
|
Total assets |
$ 83,649 |
$ 51,034 |
$ 34,756 |
$ (2,141) |
||||
|
Liabilities |
||||||||
|
Current liabilities: |
||||||||
|
Short-term borrowings |
$ 5,841 |
$ — |
$ 5,841 |
$ — |
||||
|
Accounts payable |
8,951 |
8,893 |
342 |
(284) |
6,7 |
|||
|
Accrued expenses |
4,121 |
3,646 |
461 |
14 |
7 |
|||
|
Accrued wages, salaries and employee benefits |
1,368 |
1,341 |
27 |
— |
||||
|
Customer advances |
2,202 |
2,196 |
— |
6 |
7 |
|||
|
Other current liabilities |
3,035 |
2,400 |
687 |
(52) |
4,8 |
|||
|
Long-term debt due within one year |
6,324 |
37 |
6,287 |
— |
||||
|
Total current liabilities |
31,842 |
18,513 |
13,645 |
(316) |
||||
|
Long-term debt due after one year |
24,873 |
9,589 |
15,315 |
(31) |
9 |
|||
|
Liability for postemployment benefits |
4,069 |
4,069 |
— |
— |
||||
|
Other liabilities |
4,695 |
3,786 |
1,601 |
(692) |
4 |
|||
|
Total liabilities |
65,479 |
35,957 |
30,561 |
(1,039) |
||||
|
Shareholders’ equity |
||||||||
|
Common stock |
6,546 |
6,546 |
905 |
(905) |
10 |
|||
|
Treasury stock |
(32,108) |
(32,108) |
— |
— |
||||
|
Profit employed in the business |
45,457 |
41,277 |
4,169 |
11 |
10 |
|||
|
Accumulated other comprehensive income (loss) |
(1,746) |
(657) |
(1,089) |
— |
||||
|
Noncontrolling interests |
21 |
19 |
210 |
(208) |
10 |
|||
|
Total shareholders’ equity |
18,170 |
15,077 |
4,195 |
(1,102) |
||||
|
Total liabilities and shareholders’ equity |
$ 83,649 |
$ 51,034 |
$ 34,756 |
$ (2,141) |
||||
|
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, 2022 (Unaudited) (Millions of dollars) |
||||||||
|
Supplemental Consolidating Data |
||||||||
|
Consolidated |
Machinery, Energy & Transportation |
Financial Products |
Consolidating Adjustments |
|||||
|
Assets |
||||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ 7,004 |
$ 6,042 |
$ 962 |
$ — |
||||
|
Receivables – trade and other |
8,856 |
3,710 |
519 |
4,627 |
1,2 |
|||
|
Receivables – finance |
9,013 |
— |
13,902 |
(4,889) |
2 |
|||
|
Prepaid expenses and other current assets |
2,642 |
2,488 |
290 |
(136) |
3 |
|||
|
Inventories |
16,270 |
16,270 |
— |
— |
||||
|
Total current assets |
43,785 |
28,510 |
15,673 |
(398) |
||||
|
Property, plant and equipment – net |
12,028 |
8,186 |
3,842 |
— |
||||
|
Long-term receivables – trade and other |
1,265 |
418 |
339 |
508 |
1,2 |
|||
|
Long-term receivables – finance |
12,013 |
— |
12,552 |
(539) |
2 |
|||
|
Noncurrent deferred and refundable income taxes |
2,213 |
2,755 |
115 |
(657) |
4 |
|||
|
Intangible assets |
758 |
758 |
— |
— |
||||
|
Goodwill |
5,288 |
5,288 |
— |
— |
||||
|
Other assets |
4,593 |
3,882 |
1,892 |
(1,181) |
5 |
|||
|
Total assets |
$ 81,943 |
$ 49,797 |
$ 34,413 |
$ (2,267) |
||||
|
Liabilities |
||||||||
|
Current liabilities: |
||||||||
|
Short-term borrowings |
$ 5,957 |
$ 3 |
$ 5,954 |
$ — |
||||
|
Accounts payable |
8,689 |
8,657 |
294 |
(262) |
6 |
|||
|
Accrued expenses |
4,080 |
3,687 |
393 |
— |
||||
|
Accrued wages, salaries and employee benefits |
2,313 |
2,264 |
49 |
— |
||||
|
Customer advances |
1,860 |
1,860 |
— |
— |
||||
|
Dividends payable |
620 |
620 |
— |
— |
||||
|
Other current liabilities |
2,690 |
2,215 |
635 |
(160) |
4,7 |
|||
|
Long-term debt due within one year |
5,322 |
120 |
5,202 |
— |
||||
|
Total current liabilities |
31,531 |
19,426 |
12,527 |
(422) |
||||
|
Long-term debt due after one year |
25,714 |
9,529 |
16,216 |
(31) |
8 |
|||
|
Liability for postemployment benefits |
4,203 |
4,203 |
— |
— |
||||
|
Other liabilities |
4,604 |
3,677 |
1,638 |
(711) |
4 |
|||
|
Total liabilities |
66,052 |
36,835 |
30,381 |
(1,164) |
||||
|
Shareholders’ equity |
||||||||
|
Common stock |
6,560 |
6,560 |
905 |
(905) |
9 |
|||
|
Treasury stock |
(31,748) |
(31,748) |
— |
— |
||||
|
Profit employed in the business |
43,514 |
39,435 |
4,068 |
11 |
9 |
|||
|
Accumulated other comprehensive income (loss) |
(2,457) |
(1,310) |
(1,147) |
— |
||||
|
Noncontrolling interests |
22 |
25 |
206 |
(209) |
9 |
|||
|
Total shareholders’ equity |
15,891 |
12,962 |
4,032 |
(1,103) |
||||
|
Total liabilities and shareholders’ equity |
$ 81,943 |
$ 49,797 |
$ 34,413 |
$ (2,267) |
||||
|
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 |
Elimination of prepaid insurance in Financial Products’ other liabilities. |
|
8 |
Elimination of debt between ME&T and Financial Products. |
|
9 |
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, 2023 (Unaudited) (Millions of dollars) |
||||||||
|
Supplemental Consolidating Data |
||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
|||||
|
Cash flow from operating activities: |
||||||||
|
Profit of consolidated and affiliated companies |
$ 1,942 |
$ 1,842 |
$ 178 |
$ (78) |
1,5 |
|||
|
Adjustments for non-cash items: |
||||||||
|
Depreciation and amortization |
532 |
342 |
190 |
— |
||||
|
Provision (benefit) for deferred income taxes |
(191) |
(169) |
(22) |
— |
||||
|
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. |
|
Caterpillar Inc. Supplemental Data for Cash Flow For the Three Months Ended March 31, 2022 (Unaudited) (Millions of dollars) |
||||||||
|
Supplemental Consolidating Data |
||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
|||||
|
Cash flow from operating activities: |
||||||||
|
Profit of consolidated and affiliated companies |
$ 1,537 |
$ 1,359 |
$ 179 |
$ (1) |
1 |
|||
|
Adjustments for non-cash items: |
||||||||
|
Depreciation and amortization |
557 |
358 |
199 |
— |
||||
|
Provision (benefit) for deferred income taxes |
(99) |
(83) |
(16) |
— |
||||
|
Other |
(52) |
(46) |
(89) |
83 |
2 |
|||
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
||||||||
|
Receivables – trade and other |
(372) |
(257) |
(7) |
(108) |
2,3 |
|||
|
Inventories |
(1,032) |
(1,030) |
— |
(2) |
2 |
|||
|
Accounts payable |
452 |
393 |
40 |
19 |
2 |
|||
|
Accrued expenses |
(74) |
(1) |
(73) |
— |
||||
|
Accrued wages, salaries and employee benefits |
(965) |
(940) |
(25) |
— |
||||
|
Customer advances |
311 |
311 |
— |
— |
||||
|
Other assets – net |
99 |
137 |
(17) |
(21) |
2 |
|||
|
Other liabilities – net |
(49) |
(279) |
202 |
28 |
2 |
|||
|
Net cash provided by (used for) operating activities |
313 |
(78) |
393 |
(2) |
||||
|
Cash flow from investing activities: |
||||||||
|
Capital expenditures – excluding equipment leased to others |
(346) |
(344) |
(3) |
1 |
2 |
|||
|
Expenditures for equipment leased to others |
(333) |
(4) |
(335) |
6 |
2 |
|||
|
Proceeds from disposals of leased assets and property, plant and equipment |
269 |
33 |
241 |
(5) |
2 |
|||
|
Additions to finance receivables |
(2,988) |
— |
(3,139) |
151 |
3 |
|||
|
Collections of finance receivables |
2,966 |
— |
3,159 |
(193) |
3 |
|||
|
Net intercompany purchased receivables |
— |
— |
(42) |
42 |
3 |
|||
|
Proceeds from sale of finance receivables |
9 |
— |
9 |
— |
||||
|
Net intercompany borrowings |
— |
— |
1 |
(1) |
4 |
|||
|
Investments and acquisitions (net of cash acquired) |
(8) |
(8) |
— |
— |
||||
|
Proceeds from sale of securities |
571 |
478 |
93 |
— |
||||
|
Investments in securities |
(1,438) |
(1,266) |
(172) |
— |
||||
|
Other – net |
(15) |
18 |
(33) |
— |
||||
|
Net cash provided by (used for) investing activities |
(1,313) |
(1,093) |
(221) |
1 |
||||
|
Cash flow from financing activities: |
||||||||
|
Dividends paid |
(595) |
(595) |
— |
— |
||||
|
Common stock issued, including treasury shares reissued |
(28) |
(28) |
— |
— |
||||
|
Common shares repurchased |
(820) |
(820) |
— |
— |
||||
|
Net intercompany borrowings |
— |
(1) |
— |
1 |
4 |
|||
|
Proceeds from debt issued > 90 days |
2,131 |
— |
2,131 |
— |
||||
|
Payments on debt > 90 days |
(1,387) |
(6) |
(1,381) |
— |
||||
|
Short-term borrowings – net < 90 days |
(1,016) |
(124) |
(892) |
— |
||||
|
Net cash provided by (used for) financing activities |
(1,715) |
(1,574) |
(142) |
1 |
||||
|
Effect of exchange rate changes on cash |
(16) |
(21) |
5 |
— |
||||
|
Increase (decrease) in cash, cash equivalents and restricted cash |
(2,731) |
(2,766) |
35 |
— |
||||
|
Cash, cash equivalents and restricted cash at beginning of period |
9,263 |
8,433 |
830 |
— |
||||
|
Cash, cash equivalents and restricted cash at end of period |
$ 6,532 |
$ 5,667 |
$ 865 |
$ — |
||||
|
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. |
View original content:https://www.prnewswire.com/news-releases/caterpillar-reports-first-quarter-2023-results-301809458.html
SOURCE Caterpillar Inc.
