Caterpillar, Inc. CAT

NYS: CAT | ISIN: US1491231015   13/11/2024
387,07 USD (-1,51%)
(-1,51%)   13/11/2024

Caterpillar Reports Second-Quarter 2024 Results

  • Second-quarter 2024 profit per share of $5.48; adjusted profit per share of $5.99
  • Enterprise operating cash flow was $3.0 billion in the second quarter of 2024
  • Deployed $2.5 billion of cash for share repurchases and dividends in the second quarter


Second Quarter

($ in billions except profit per share)


2024

2023

Sales and Revenues


$16.7

$17.3

Profit Per Share


$5.48

$5.67

Adjusted Profit Per Share


$5.99

$5.55





Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.

 

IRVING, Texas, Aug. 6, 2024 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced second-quarter 2024 results. Sales and revenues for the second quarter of 2024 were $16.7 billion, a 4% decrease compared with $17.3 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume, partially offset by favorable price realization.

Operating profit margin was 20.9% for the second quarter of 2024, compared with 21.1% for the second quarter of 2023. Adjusted operating profit margin was 22.4% for the second quarter of 2024, compared with 21.3% for the second quarter of 2023. Second-quarter 2024 profit per share was $5.48, compared with second-quarter 2023 profit per share of $5.67. Adjusted profit per share in the second quarter of 2024 was $5.99, compared with second-quarter 2023 adjusted profit per share of $5.55. For the second quarter of 2024 and 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring costs. Second-quarter 2023 adjusted profit per share also excluded a discrete tax benefit to adjust deferred tax balances.

For the second quarter of 2024, enterprise operating cash flow was $3.0 billion, and the company ended the second quarter with $4.3 billion of enterprise cash. In the quarter, the company deployed $1.8 billion of cash for repurchases of Caterpillar common stock and $0.6 billion of cash for dividends.

"I'd like to thank our team for delivering another strong quarter, including higher adjusted operating profit margin, record adjusted profit per share and robust ME&T free cash flow," said Chairman and CEO Jim Umpleby. "Our results continue to reflect the benefit of the diversity of our end markets as well as the disciplined execution of our strategy for long-term profitable growth."

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison
Second Quarter 2024 vs. Second Quarter 2023 

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2024 earnings.  

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2023 (at left) and the second 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 second quarter of 2024 were $16.689 billion, a decrease of $629 million, or 4%, compared with $17.318 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $1.206 billion, partially offset by favorable price realization of $578 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2024, compared with an increase during the second quarter of 2023.

In the three primary segments, sales were lower in Construction Industries and Resource Industries and higher in Energy & Transportation.

Sales and Revenues by Segment

(Millions of dollars)

Second
Quarter
2023


Sales

Volume


Price

Realization


Currency


Inter-
Segment /
Other


Second
Quarter
2024


$

Change


%

Change

















Construction Industries

$        7,154


$         (588)


$           178


$           (55)


$             (6)


$        6,683


$         (471)


(7 %)

Resource Industries

3,563


(475)


133


(9)


(6)


3,206


(357)


(10 %)

Energy & Transportation

7,219


(129)


264


(12)


(5)


7,337


118


2 %

All Other Segment

116


(7)


3


(1)


(3)


108


(8)


(7 %)

Corporate Items and Eliminations

(1,507)


(7)




20


(1,494)


13



Machinery, Energy & Transportation

16,545


(1,206)


578


(77)



15,840


(705)


(4 %)

















Financial Products Segment

923





81


1,004


81


9 %

Corporate Items and Eliminations

(150)





(5)


(155)


(5)



Financial Products Revenues

773





76


849


76


10 %

















Consolidated Sales and Revenues

$       17,318


$       (1,206)


$           578


$           (77)


$            76


$       16,689


$         (629)


(4 %)

















 

Sales and Revenues by Geographic Region


North America


Latin America


EAME


Asia/Pacific


External Sales
and Revenues


Inter-Segment


Total Sales
and Revenues

(Millions of dollars)

$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg

Second Quarter 2024




























Construction Industries

$   3,957


— %


$     677


20 %


$   1,047


(27 %)


$     975


(15 %)


$   6,656


(7 %)


$       27


(18 %)


$   6,683


(7 %)

Resource Industries

1,206


(10 %)


524


(3 %)


442


(15 %)


950


(12 %)


3,122


(10 %)


84


(7 %)


3,206


(10 %)

Energy & Transportation

3,308


6 %


439


(4 %)


1,421


(4 %)


912


1 %


6,080


2 %


1,257


— %


7,337


2 %

All Other Segment

13


(19 %)



— %


4


— %


12


(14 %)


29


(15 %)


79


(4 %)


108


(7 %)

Corporate Items and Eliminations

(20)




(1)




(21)




(5)




(47)




(1,447)




(1,494)



Machinery, Energy & Transportation

8,464


1 %


1,639


5 %


2,893


(16 %)


2,844


(9 %)


15,840


(4 %)



— %


15,840


(4 %)





























Financial Products Segment

668


13 %


101


(1 %)


124


5 %


111


1 %


1,004


9 %



— %


1,004


9 %

Corporate Items and Eliminations

(89)




(21)




(20)




(25)




(155)







(155)



Financial Products Revenues

579


14 %


80


(1 %)


104


7 %


86


(1 %)


849


10 %



— %


849


10 %





























Consolidated Sales and Revenues

$   9,043


1 %


$   1,719


5 %


$   2,997


(15 %)


$   2,930


(9 %)


$ 16,689


(4 %)


$        —


— %


$ 16,689


(4 %)





























Second Quarter 2023




























Construction Industries

$   3,968




$     566




$   1,438




$   1,149




$   7,121




$       33




$   7,154



Resource Industries

1,342




538




517




1,076




3,473




90




3,563



Energy & Transportation

3,120




459




1,479




899




5,957




1,262




7,219



All Other Segment

16







4




14




34




82




116



Corporate Items and Eliminations

(32)




(2)




(2)




(4)




(40)




(1,467)




(1,507)



Machinery, Energy & Transportation

8,414




1,561




3,436




3,134




16,545







16,545































Financial Products Segment

593




102




118




110




923







923



Corporate Items and Eliminations

(85)




(21)




(21)




(23)




(150)







(150)



Financial Products Revenues

508




81




97




87




773







773































Consolidated Sales and Revenues

$   8,922




$   1,642




$   3,533




$   3,221




$ 17,318




$        —




$ 17,318































Consolidated Operating Profit

Consolidated Operating Profit Comparison
Second Quarter 2024 vs. Second Quarter 2023 

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2024 earnings.  

The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2023 (at left) and the second 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 second quarter of 2024 was $3.482 billion, a decrease of $170 million, or 5%, compared with $3.652 billion in the second quarter of 2023. Favorable price realization of $578 million was more than offset by the profit impact of lower sales volume of $431 million, higher restructuring costs of $227 million and higher selling, general and administrative (SG&A) and research and development (R&D) expenses of $79 million. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives.

In the second quarter of 2024, restructuring costs increased primarily due to the divestiture of two non-U.S. entities.

Profit (Loss) by Segment

(Millions of dollars)

Second Quarter
2024


Second Quarter
2023


$

Change


%

 Change

Construction Industries

$                 1,741


$                 1,803


$                    (62)


(3 %)

Resource Industries

718


740


(22)


(3 %)

Energy & Transportation

1,525


1,269


256


20 %

All Other Segment

21


10


11


110 %

Corporate Items and Eliminations

(344)


(272)


(72)



Machinery, Energy & Transportation

3,661


3,550


111


3 %









Financial Products Segment

227


240


(13)


(5 %)

Corporate Items and Eliminations

(243)


17


(260)



Financial Products

(16)


257


(273)


(106 %)









Consolidating Adjustments

(163)


(155)


(8)











Consolidated Operating Profit

$                 3,482


$                 3,652


$                  (170)


(5 %)









Other Profit/Loss and Tax Items

  • Other income (expense) in the second quarter of 2024 was income of $155 million, compared with income of $127 million in the second quarter of 2023. The change was primarily driven by favorable impacts from commodity hedges.

  • The effective tax rate for the second quarter of 2024 was 23.9% compared to 20.6% for the second quarter of 2023. Excluding the discrete items discussed below, the second quarter 2024 estimated annual tax rate was 22.5% compared with 23.0% for the second quarter of 2023.

    The 2024 estimated annual tax rate excludes the impact of second-quarter losses of $228 million for the divestiture of two non-U.S. entities with no related tax benefit. In addition, a discrete tax benefit of $4 million was recorded in the second quarter of 2024 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. In the second quarter of 2023, the company recorded a discrete tax benefit of $88 million due to a change in the valuation allowance for certain deferred tax assets.

    Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.

CONSTRUCTION INDUSTRIES

(Millions of dollars)

















Segment Sales

















Second
Quarter 2023


Sales
Volume


Price
Realization


Currency


Inter-
Segment


Second
Quarter 2024


$

 Change


%

 Change

Total Sales


$       7,154


$         (588)


$        178


$          (55)


$               (6)


$          6,683


$     (471)


(7 %)


















Sales by Geographic Region











Second
Quarter 2024


Second
Quarter 2023


$

Change


%

Change









North America


$       3,957


$       3,968


$        (11)


— %









Latin America


677


566


111


20 %









EAME


1,047


1,438


(391)


(27 %)









Asia/Pacific


975


1,149


(174)


(15 %)









External Sales


6,656


7,121


(465)


(7 %)









Inter-segment


27


33


(6)


(18 %)









Total Sales


$       6,683


$       7,154


$      (471)


(7 %)


























Segment Profit











Second
Quarter 2024


Second
Quarter 2023


 

Change


%

Change









Segment Profit


$       1,741


$       1,803


$        (62)


(3 %)









Segment Profit Margin


26.1 %


25.2 %


           0.9 pts




























Construction Industries' total sales were $6.683 billion in the second quarter of 2024, a decrease of $471 million, or 7%, compared with $7.154 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $588 million, partially offset by favorable price realization of $178 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory remained about flat during the second quarter of 2024, compared to an increase during the second quarter of 2023.

  • Sales in North America were about flat. Lower sales volume was offset by favorable price realization. Lower sales volume was mainly driven by lower sales of equipment to end users.
  • Sales increased in Latin America mainly due to higher sales volume. Higher sales volume was primarily driven by the impact from changes in dealer inventories. Dealer inventory increased during the second quarter of 2024, compared with a decrease during the second quarter of 2023.
  • In EAME, sales decreased primarily due to lower sales volume. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2024, compared with an increase during the second quarter of 2023.
  • Sales decreased in Asia/Pacific mainly due to lower sales volume and unfavorable currency impacts primarily related to the Japanese yen. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2024, compared with an increase during the second quarter of 2023.

Construction Industries' segment profit was $1.741 billion in the second quarter of 2024, a decrease of $62 million, or 3%, compared with $1.803 billion in the second quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $288 million and higher SG&A/R&D expenses of $30 million, partially offset by favorable price realization of $178 million, favorable manufacturing costs of $62 million and favorable other segment items of $16 million. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives. Favorable manufacturing costs largely reflected lower material costs. Favorable other segment items primarily consisted of favorable currency impacts.

RESOURCE INDUSTRIES

(Millions of dollars)

















Segment Sales

















Second
Quarter 2023


Sales
Volume


Price
Realization


Currency


Inter-
Segment


Second
Quarter 2024


$

 Change


%

 Change

Total Sales


$       3,563


$         (475)


$        133


$            (9)


$               (6)


$          3,206


$     (357)


(10 %)


















Sales by Geographic Region











Second
Quarter 2024


Second
Quarter 2023


$

Change


%

Change









North America


$       1,206


$       1,342


$      (136)


(10 %)









Latin America


524


538


(14)


(3 %)









EAME


442


517


(75)


(15 %)









Asia/Pacific


950


1,076


(126)


(12 %)









External Sales


3,122


3,473


(351)


(10 %)









Inter-segment


84


90


(6)


(7 %)









Total Sales


$       3,206


$       3,563


$      (357)


(10 %)


























Segment Profit











Second
Quarter 2024


Second
Quarter 2023


 

Change


%

Change









Segment Profit


$          718


$          740


$        (22)


(3 %)









Segment Profit Margin


22.4 %


20.8 %


           1.6 pts 




























Resource Industries' total sales were $3.206 billion in the second quarter of 2024, a decrease of $357 million, or 10%, compared with $3.563 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $475 million, partially offset by favorable price realization of $133 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased more during the second quarter of 2024 than during the second quarter of 2023.

Resource Industries' segment profit was $718 million in the second quarter of 2024, a decrease of $22 million, or 3%, compared with $740 million in the second quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $169 million, unfavorable other segment items of $16 million and higher SG&A/R&D expenses of $14 million, partially offset by favorable price realization of $133 million and favorable manufacturing costs of $44 million. Unfavorable other segment items primarily consisted of unfavorable currency impacts. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives. Favorable manufacturing costs largely reflected lower freight.

ENERGY & TRANSPORTATION

(Millions of dollars)

















Segment Sales

















Second
Quarter 2023


Sales
Volume


Price
Realization


Currency


Inter-
Segment


Second
Quarter 2024


$

 Change


%

 Change

Total Sales


$       7,219


$         (129)


$        264


$          (12)


$               (5)


$          7,337


$      118


2 %


















Sales by Application











Second
Quarter 2024


Second
Quarter 2023


$

Change


%

Change









Oil and Gas


$       1,829


$       1,760


$          69


4 %









Power Generation


1,885


1,645


240


15 %









Industrial


1,045


1,318


(273)


(21 %)









Transportation


1,321


1,234


87


7 %









External Sales


6,080


5,957


123


2 %









Inter-segment


1,257


1,262


(5)


— %









Total Sales


$       7,337


$       7,219


$        118


2 %


























Segment Profit











Second
Quarter 2024


Second
Quarter 2023


 

Change


%

Change









Segment Profit


$       1,525


$       1,269


$        256


20 %









Segment Profit Margin


20.8 %


17.6 %


           3.2 pts




























Energy & Transportation's total sales were $7.337 billion in the second quarter of 2024, an increase of $118 million, or 2%, compared with $7.219 billion in the second quarter of 2023. Sales increased across all applications except Industrial. The increase in sales was primarily due to favorable price realization of $264 million, partially offset by lower sales volume of $129 million.

  • Oil and Gas – Sales increased for turbines and turbine-related services.
  • Power Generation – Sales increased in large reciprocating engines, primarily data center applications. Turbines and turbine-related services increased as well.
  • Industrial – Sales decreased in EAME and North America.
  • Transportation – Sales increased in rail services and marine.

Energy & Transportation's segment profit was $1.525 billion in the second quarter of 2024, an increase of $256 million, or 20%, compared with $1.269 billion in the second quarter of 2023. The increase was mainly due to favorable price realization of $264 million.

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

















Revenues by Geographic Region











Second
Quarter 2024


Second
Quarter 2023


$

Change


%

Change









North America


$             668


$             593


$               75


13 %









Latin America


101


102


(1)


(1 %)









EAME


124


118


6


5 %









Asia/Pacific


111


110


1


1 %









Total Revenues


$          1,004


$             923


$               81


9 %


























Segment Profit











Second
Quarter 2024


Second
Quarter 2023


 

Change


%

Change









Segment Profit


$             227


$             240


$             (13)


(5 %)


























Financial Products' segment revenues were $1.004 billion in the second quarter of 2024, an increase of $81 million, or 9%, compared with $923 million in the second quarter of 2023. The increase was primarily due to a favorable impact from higher average financing rates across all regions of $50 million and a favorable impact from higher average earning assets driven by North America of $32 million.

Financial Products' segment profit was $227 million in the second quarter of 2024, a decrease of $13 million, or 5%, compared with $240 million in the second quarter of 2023. The decrease was mainly due to higher provision for credit losses at Cat Financial of $27 million and an increase in SG&A expenses of $15 million, partially offset by the absence of prior year unfavorable currency impacts of $14 million and a favorable impact from higher average earning assets of $12 million.

At the end of the second quarter of 2024, past dues at Cat Financial were 1.74%, compared with 2.15% at the end of the second quarter of 2023. Write-offs, net of recoveries, were $18 million for the second quarter of 2024, compared with $8 million for the second quarter of 2023. As of June 30, 2024, Cat Financial's allowance for credit losses totaled $254 million, or 0.89% of finance receivables, compared with $281 million, or 1.01% of finance receivables at March 31, 2024. The allowance for credit losses at year-end 2023 was $331 million, or 1.18% of finance receivables.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $587 million in the second quarter of 2024, an increase of $332 million from the second quarter of 2023, primarily driven by higher restructuring costs and higher corporate costs.

In the second quarter of 2024, restructuring costs increased primarily due to the divestiture of two non-U.S. entities.

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 Tuesday, Aug. 6, 2024.
iii.  Information on non-GAAP financial measures is included in the appendix on pages 13 and 14.
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 Tuesday, Aug. 6, 2024, to discuss its 2024 second-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 costs related to the divestiture of two non-U.S. entities in 2024, (ii) other restructuring income/costs and (iii) certain deferred tax valuation allowance adjustments 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
Profit


Operating
Profit Margin


Profit Before
Taxes


Provision
(Benefit) for
Income Taxes



Profit


Profit per
Share















Three Months Ended June 30, 2024 - U.S. GAAP


$           3,482


20.9 %


$           3,500


$             836



$           2,681


$            5.48

Restructuring costs - divestiture of two non-U.S. entities


228


1.3 %


228




228


0.47

Other restructuring (income) costs


30


0.2 %


30


6



24


0.04

Three Months Ended June 30, 2024 - Adjusted


$           3,740


22.4 %


$           3,758


$             842



$           2,933


$            5.99















Three Months Ended June 30, 2023 - U.S. GAAP


$           3,652


21.1 %


$           3,652


$             752



$           2,922


$            5.67

Other restructuring (income) costs


31


0.2 %


31


6



25


0.05

Deferred tax valuation allowance adjustments



— %



88



(88)


(0.17)

Three Months Ended June 30, 2023 - Adjusted


$           3,683


21.3 %


$           3,683


$             846



$           2,859


$            5.55















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 is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. For the three months ended June 30, 2024, and 2023, these items consist of (i) restructuring costs related to the divestiture of two non-U.S. entities in 2024, (ii) certain deferred tax valuation allowance adjustments 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
Taxes


Provision
(Benefit) for
Income Taxes


Effective Tax
Rate








Three Months Ended June 30, 2024 - U.S. GAAP


$           3,500


$             836


23.9 %

Restructuring costs - divestiture of two non-U.S. entities


228




Excess stock-based compensation



4



Annual effective tax rate, excluding discrete items


$           3,728


$             840


22.5 %








Excess stock-based compensation



(4)



Other restructuring (income) costs


30


6










Three Months Ended June 30, 2024 - Adjusted


$           3,758


$             842










Three Months Ended June 30, 2023 - U.S. GAAP


$           3,652


$             752


20.6 %

Deferred tax valuation allowance adjustments



88



Annual effective tax rate, excluding discrete items


$           3,652


$             840


23.0 %








Other restructuring (income) costs


31


6










Three Months Ended June 30, 2023 - Adjusted


$           3,683


$             846



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 16 to 26 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
June 30,


Six Months Ended
June 30,


2024


2023


2024


2023

Sales and revenues:








  Sales of Machinery, Energy & Transportation

$       15,840


$      16,545


$       30,800


$     31,644

  Revenues of Financial Products

849


773


1,688


1,536

  Total sales and revenues

16,689


17,318


32,488


33,180









Operating costs:








  Cost of goods sold

10,150


11,065


19,812


21,168

  Selling, general and administrative expenses

1,652


1,528


3,229


2,991

  Research and development expenses

535


528


1,055


1,000

  Interest expense of Financial Products

314


245


612


462

  Other operating (income) expenses

556


300


779


1,176

  Total operating costs

13,207


13,666


25,487


26,797









Operating profit

3,482


3,652


7,001


6,383









  Interest expense excluding Financial Products

137


127


280


256

  Other income (expense)

155


127


311


159









Consolidated profit before taxes

3,500


3,652


7,032


6,286









  Provision (benefit) for income taxes

836


752


1,524


1,460

  Profit of consolidated companies

2,664


2,900


5,508


4,826









  Equity in profit (loss) of unconsolidated affiliated companies

17


24


27


40









Profit of consolidated and affiliated companies

2,681


2,924


5,535


4,866









Less: Profit (loss) attributable to noncontrolling interests


2


(2)


1









Profit 1

$         2,681


$        2,922


$         5,537


$       4,865

















Profit per common share

$          5.50


$          5.70


$         11.28


$         9.46

Profit per common share — diluted 2

$          5.48


$          5.67


$         11.23


$         9.41









Weighted-average common shares outstanding (millions)








– Basic

487.2


512.9


490.7


514.3

– Diluted 2

489.5


515.0


493.3


517.1










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)



June 30,
2024


December 31,
2023

Assets




Current assets:




Cash and cash equivalents

$                     4,341


$                     6,978

Receivables – trade and other

9,421


9,310

Receivables – finance

9,516


9,510

Prepaid expenses and other current assets

2,736


4,586

Inventories

17,082


16,565

Total current assets

43,096


46,949





Property, plant and equipment – net

12,582


12,680

Long-term receivables – trade and other

1,181


1,238

Long-term receivables – finance

12,797


12,664

Noncurrent deferred and refundable income taxes

2,920


2,816

Intangible assets

488


564

Goodwill

5,264


5,308

Other assets

5,008


5,257

Total assets

$                   83,336


$                   87,476





Liabilities




Current liabilities:




Short-term borrowings:




-- Machinery, Energy & Transportation

$                           —


$                           —

-- Financial Products

5,298


4,643

Accounts payable

7,575


7,906

Accrued expenses

4,947


4,958

Accrued wages, salaries and employee benefits

1,677


2,757

Customer advances

2,324


1,929

Dividends payable

684


649

Other current liabilities

2,882


3,123

Long-term debt due within one year:




-- Machinery, Energy & Transportation

45


1,044

-- Financial Products

8,132


7,719

Total current liabilities

33,564


34,728





Long-term debt due after one year:




-- Machinery, Energy & Transportation

8,537


8,579

-- Financial Products

15,299


15,893

Liability for postemployment benefits

3,993


4,098

Other liabilities

4,807


4,675

Total liabilities

66,200


67,973





Shareholders' equity




Common stock

5,517


6,403

Treasury stock

(41,612)


(36,339)

Profit employed in the business

55,455


51,250

Accumulated other comprehensive income (loss)

(2,230)


(1,820)

Noncontrolling interests

6


9

Total shareholders' equity

17,136


19,503

Total liabilities and shareholders' equity

$                   83,336


$                   87,476

 

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)



Six Months Ended

June 30,


2024


2023

Cash flow from operating activities:




Profit of consolidated and affiliated companies

$              5,535


$              4,866

Adjustments to reconcile profit to net cash provided by operating activities:




Depreciation and amortization

1,055


1,074

Provision (benefit) for deferred income taxes

(133)


(355)

(Gain) loss on divestiture

164


572

Other

105


106

Changes in assets and liabilities, net of acquisitions and divestitures:




Receivables – trade and other

(245)


(465)

Inventories

(643)


(1,560)

Accounts payable

(21)


34

Accrued expenses

69


381

Accrued wages, salaries and employee benefits

(1,056)


(562)

Customer advances

341


284

Other assets – net

20


81

Other liabilities – net

(118)


366

Net cash provided by (used for) operating activities

5,073


4,822

Cash flow from investing activities:




Capital expenditures – excluding equipment leased to others

(841)


(683)

Expenditures for equipment leased to others

(614)


(774)

Proceeds from disposals of leased assets and property, plant and equipment

342


368

Additions to finance receivables

(7,446)


(6,973)

Collections of finance receivables

6,743


6,759

Proceeds from sale of finance receivables

37


29

Investments and acquisitions (net of cash acquired)

(32)


(20)

Proceeds from sale of businesses and investments (net of cash sold)

(61)


(14)

Proceeds from maturities and sale of securities

2,574


463

Investments in securities

(523)


(1,078)

Other – net

57


41

Net cash provided by (used for) investing activities

236


(1,882)

Cash flow from financing activities:




Dividends paid

(1,283)


(1,238)

Common stock issued, including treasury shares reissued

8


(22)

Payments to purchase common stock

(6,275)


(1,829)

Proceeds from debt issued (original maturities greater than three months)

4,151


3,299

Payments on debt (original maturities greater than three months)

(5,217)


(2,303)

Short-term borrowings – net (original maturities three months or less)

687


(406)

Net cash provided by (used for) financing activities

(7,929)


(2,499)

Effect of exchange rate changes on cash

(17)


(60)

Increase (decrease) in cash, cash equivalents and restricted cash

(2,637)


381

Cash, cash equivalents and restricted cash at beginning of period

6,985


7,013

Cash, cash equivalents and restricted cash at end of period

$              4,348


$              7,394


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 June 30, 2024

(Unaudited)

(Millions of dollars)





Supplemental Consolidating Data



Consolidated


Machinery,
Energy &
Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          15,840


$                15,840


$                —


$                 —


Revenues of Financial Products

849



1,043


(194)

1

Total sales and revenues

16,689


15,840


1,043


(194)











Operating costs:









Cost of goods sold

10,150


10,152



(2)

2

Selling, general and administrative expenses

1,652


1,449


185


18

2

Research and development expenses

535


535




Interest expense of Financial Products

314



314



Other operating (income) expenses

556


43


560


(47)

2

Total operating costs

13,207


12,179


1,059


(31)











Operating profit

3,482


3,661


(16)


(163)











Interest expense excluding Financial Products

137


137




Other income (expense)

155


(21)


13


163

3










Consolidated profit before taxes

3,500


3,503


(3)












Provision (benefit) for income taxes

836


786


50



Profit of consolidated companies

2,664


2,717


(53)












Equity in profit (loss) of unconsolidated affiliated companies

17


17













Profit of consolidated and affiliated companies

2,681


2,734


(53)












Less: Profit (loss) attributable to noncontrolling interests














Profit 4

$            2,681


$                  2,734


$               (53)


$                 —




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 June 30, 2023

(Unaudited)

(Millions of dollars)







Supplemental Consolidating Data



Consolidated


Machinery,
Energy &
Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          16,545


$              16,545


$                —


$                 —


Revenues of Financial Products

773



955


(182)

1

Total sales and revenues

17,318


16,545


955


(182)











Operating costs:









Cost of goods sold

11,065


11,068



(3)

2

Selling, general and administrative expenses

1,528


1,389


143


(4)

2

Research and development expenses

528


528




Interest expense of Financial Products

245



245



Other operating (income) expenses

300


10


310


(20)

2

Total operating costs

13,666


12,995


698


(27)











Operating profit

3,652


3,550


257


(155)











Interest expense excluding Financial Products

127


127




Other income (expense)

127


(10)


(18)


155

3










Consolidated profit before taxes

3,652


3,413


239












Provision (benefit) for income taxes

752


691


61



Profit of consolidated companies

2,900


2,722


178












Equity in profit (loss) of unconsolidated affiliated companies

24


24













Profit of consolidated and affiliated companies

2,924


2,746


178












Less: Profit (loss) attributable to noncontrolling interests

2


(1)


3












Profit 4

$            2,922


$                2,747


$              175


$                 —



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

Profit attributable to common shareholders

 

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2024

(Unaudited)

(Millions of dollars)







Supplemental Consolidating Data



Consolidated


Machinery,
Energy &
Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          30,800


$                30,800


$                —


$                 —


Revenues of Financial Products

1,688



2,072


(384)

1

Total sales and revenues

32,488


30,800


2,072


(384)











Operating costs:









Cost of goods sold

19,812


19,816



(4)

2

Selling, general and administrative expenses

3,229


2,862


363


4

2

Research and development expenses

1,055


1,055




Interest expense of Financial Products

612



612



Other operating (income) expenses

779


2


845


(68)

2

Total operating costs

25,487


23,735


1,820


(68)











Operating profit

7,001


7,065


252


(316)











Interest expense excluding Financial Products

280


280




Other income (expense)

311


(41)


36


316

3










Consolidated profit before taxes

7,032


6,744


288












Provision (benefit) for income taxes

1,524


1,401


123



Profit of consolidated companies

5,508


5,343


165












Equity in profit (loss) of unconsolidated affiliated companies

27


27













Profit of consolidated and affiliated companies

5,535


5,370


165












Less: Profit (loss) attributable to noncontrolling interests

(2)


(3)


1












Profit 4

$            5,537


$                  5,373


$              164


$                 —



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 Six Months Ended June 30, 2023

(Unaudited)

(Millions of dollars)







Supplemental Consolidating Data



Consolidated


Machinery,
Energy &
Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          31,644


$                31,644


$                —


$                 —


Revenues of Financial Products

1,536



1,890


(354)

1

Total sales and revenues

33,180


31,644


1,890


(354)











Operating costs:









Cost of goods sold

21,168


21,172



(4)

2

Selling, general and administrative expenses

2,991


2,709


301


(19)

2

Research and development expenses

1,000


1,000




Interest expense of Financial Products

462



462



Other operating (income) expenses

1,176


599


613


(36)

2

Total operating costs

26,797


25,480


1,376


(59)











Operating profit

6,383


6,164


514


(295)











Interest expense excluding Financial Products

256


256




Other income (expense)

159


(24)


(37)


220

3










Consolidated profit before taxes

6,286


5,884


477


(75)











Provision (benefit) for income taxes

1,460


1,339


121



Profit of consolidated companies

4,826


4,545


356


(75)











Equity in profit (loss) of unconsolidated affiliated companies

40


43



(3)

4










Profit of consolidated and affiliated companies

4,866


4,588


356


(78)











Less: Profit (loss) attributable to noncontrolling interests

1


(1)


5


(3)

5










Profit 6

$            4,865


$                  4,589


$              351


$                (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 June 30, 2024

(Unaudited)

(Millions of dollars)







Supplemental Consolidating Data



Consolidated


Machinery,

Energy &

Transportation


Financial

Products


Consolidating

Adjustments


Assets









Current assets:









Cash and cash equivalents

$             4,341


$                 3,481


$               860


$                 —


Receivables – trade and other

9,421


3,672


643


5,106

1,2

Receivables – finance

9,516



14,826


(5,310)

2

Prepaid expenses and other current assets

2,736


2,549


390


(203)

3

Inventories

17,082


17,082




Total current assets

43,096


26,784


16,719


(407)











Property, plant and equipment – net

12,582


8,653


3,929



Long-term receivables – trade and other

1,181


501


55


625

1,2

Long-term receivables – finance

12,797



13,490


(693)

2

Noncurrent deferred and refundable income taxes

2,920


3,433


120


(633)

4

Intangible assets

488


488




Goodwill

5,264


5,264




Other assets

5,008


3,934


2,112


(1,038)

5

Total assets

$           83,336


$               49,057


$           36,425


$            (2,146)











Liabilities









Current liabilities:









Short-term borrowings

$             5,298


$                     —


$             5,298


$                 —


Accounts payable

7,575


7,523


274


(222)

6,7

Accrued expenses

4,947


4,315


632



Accrued wages, salaries and employee benefits

1,677


1,637


40



Customer advances

2,324


2,303


3


18

7

Dividends payable

684


684




Other current liabilities

2,882


2,365


744


(227)

4,8

Long-term debt due within one year

8,177


45


8,132



Total current liabilities

33,564


18,872


15,123


(431)











Long-term debt due after one year

23,836


8,605


15,299


(68)

9

Liability for postemployment benefits

3,993


3,993




Other liabilities

4,807


3,931


1,550


(674)

4

Total liabilities

66,200


35,401


31,972


(1,173)











Shareholders' equity









Common stock

5,517


5,517


905


(905)

10

Treasury stock

(41,612)


(41,612)




Profit employed in the business

55,455


50,824


4,621


10

10

Accumulated other comprehensive income (loss)

(2,230)


(1,082)


(1,148)



Noncontrolling interests

6


9


75


(78)

10

Total shareholders' equity

17,136


13,656


4,453


(973)


Total liabilities and shareholders' equity

$           83,336


$               49,057


$           36,425


$            (2,146)




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 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,

Energy &

Transportation


Financial

Products


Consolidating

Adjustments


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 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 Six Months Ended June 30, 2024

(Unaudited)

(Millions of dollars)





Supplemental Consolidating Data



Consolidated


Machinery,
Energy &
Transportation


Financial

Products


Consolidating

Adjustments


Cash flow from operating activities:









Profit of consolidated and affiliated companies

$              5,535


$              5,370


$                165


$                  —


Adjustments to reconcile profit to net cash provided by operating activities:









Depreciation and amortization

1,055


662


393



Provision (benefit) for deferred income taxes

(133)


(81)


(52)



(Gain) loss on divestiture

164


(46)


210



Other

105


104


(280)


281

1

Changes in assets and liabilities, net of acquisitions and divestitures:









Receivables – trade and other

(245)


195


96


(536)

1,2

Inventories

(643)


(638)



(5)

1

Accounts payable

(21)


6


(58)


31

1

Accrued expenses

69


(41)


110



Accrued wages, salaries and employee benefits

(1,056)


(1,035)


(21)



Customer advances

341


341




Other assets – net

20


(108)


5


123

1

Other liabilities – net

(118)


(156)


147


(109)

1

Net cash provided by (used for) operating activities

5,073


4,573


715


(215)


Cash flow from investing activities:









Capital expenditures – excluding equipment leased to others

(841)


(831)


(13)


3

1

Expenditures for equipment leased to others

(614)


(10)


(612)


8

1

Proceeds from disposals of leased assets and property, plant and equipment

342


13


335


(6)

1

Additions to finance receivables

(7,446)



(7,951)


505

2

Collections of finance receivables

6,743



7,176


(433)

2

Net intercompany purchased receivables



(138)


138

2

Proceeds from sale of finance receivables

37



37



Net intercompany borrowings



9


(9)

3

Investments and acquisitions (net of cash acquired)

(32)


(32)




Proceeds from sale of businesses and investments (net of cash sold)

(61)


92


(153)



Proceeds from maturities and sale of securities

2,574


2,402


172



Investments in securities

(523)


(300)


(223)



Other – net

57


47


10



Net cash provided by (used for) investing activities

236


1,381


(1,351)


206


Cash flow from financing activities:









Dividends paid

(1,283)


(1,283)




Common stock issued, including treasury shares reissued

8


8




Payments to purchase common stock

(6,275)


(6,275)




Net intercompany borrowings


(9)



9

3

Proceeds from debt issued (original maturities greater than three months)

4,151



4,151



Payments on debt (original maturities greater than three months)

(5,217)


(1,014)


(4,203)



Short-term borrowings – net (original maturities three months or less)

687



687



Net cash provided by (used for) financing activities

(7,929)


(8,573)


635


9


Effect of exchange rate changes on cash

(17)


(7)


(10)



Increase (decrease) in cash, cash equivalents and restricted cash

(2,637)


(2,626)


(11)



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

$              4,348


$              3,485


$                863


$                  —



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 Six Months Ended June 30, 2023

(Unaudited)

 (Millions of dollars)







Supplemental Consolidating Data



Consolidated


Machinery,
Energy &
Transportation


Financial

Products


Consolidating

Adjustments


Cash flow from operating activities:









Profit of consolidated and affiliated companies

$              4,866


$              4,588


$                356


$                 (78)

1,5

Adjustments to reconcile profit to net cash provided by operating activities:









Depreciation and amortization

1,074


690


384



Provision (benefit) for deferred income taxes

(355)


(338)


(17)



(Gain) loss on divestiture

572


572




Other

106


198


(368)


276

2

Changes in assets and liabilities, net of acquisitions and divestitures:









Receivables – trade and other

(465)


132


57


(654)

2,3

Inventories

(1,560)


(1,558)



(2)

2

Accounts payable

34


(28)


2


60

2

Accrued expenses

381


318


63



Accrued wages, salaries and employee benefits

(562)


(550)


(12)



Customer advances

284


283


1



Other assets – net

81


149


5


(73)

2

Other liabilities – net

366


211


71


84

2

Net cash provided by (used for) operating activities

4,822


4,667


542


(387)


Cash flow from investing activities:









Capital expenditures – excluding equipment leased to others

(683)


(678)


(11)


6

2

Expenditures for equipment leased to others

(774)


(7)


(772)


5

2

Proceeds from disposals of leased assets and property, plant and equipment

368


27


350


(9)

2

Additions to finance receivables

(6,973)



(7,957)


984

3

Collections of finance receivables

6,759



7,516


(757)

3

Net intercompany purchased receivables



(83)


83

3

Proceeds from sale of finance receivables

29



29



Net intercompany borrowings



4


(4)

4

Investments and acquisitions (net of cash acquired)

(20)


(20)




Proceeds from sale of businesses and investments (net of cash sold)

(14)


(14)




Proceeds from sale of securities

463


332


131



Investments in securities

(1,078)


(866)


(212)



Other – net

41


41




Net cash provided by (used for) investing activities

(1,882)


(1,185)


(1,005)


308


Cash flow from financing activities:









Dividends paid

(1,238)


(1,238)


(75)


75

5

Common stock issued, including treasury shares reissued

(22)


(22)




Payments to purchase common stock

(1,829)


(1,829)




Net intercompany borrowings


(4)



4

4

Proceeds from debt issued (original maturities greater than three months)

3,299



3,299



Payments on debt (original maturities greater than three months)

(2,303)


(95)


(2,208)



Short-term borrowings – net (original maturities three months or less)

(406)


(3)


(403)



Net cash provided by (used for) financing activities

(2,499)


(3,191)


613


79


Effect of exchange rate changes on cash

(60)


(12)


(48)



Increase (decrease) in cash, cash equivalents and restricted cash

381


279


102



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

$              7,394


$              6,328


$              1,066


$                  —




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.

 

Cision View original content:https://www.prnewswire.com/news-releases/caterpillar-reports-second-quarter-2024-results-302215400.html

SOURCE Caterpillar Inc.

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