Summary
Caterpillar Inc. reported robust performance in its 2018 10-K filing, with sales and revenues increasing by 20% to $54.72 billion, driven by broad-based demand across all three primary segments: Construction Industries, Resource Industries, and Energy & Transportation. This significant revenue growth translated into a substantial improvement in profitability, with profit per share rising from $1.26 in 2017 to $10.26 in 2018. The company also saw its operating profit margin improve significantly to 15.2% from 9.8% in the prior year, demonstrating effective cost management and price realization. Financially, Caterpillar maintained a strong liquidity position with $7.86 billion in cash and short-term investments. The company returned capital to shareholders through dividends and share repurchases, announcing a new $10 billion share repurchase authorization for 2019. The filing highlights Caterpillar's commitment to strategic growth initiatives, including investments in research and development, while navigating a complex global economic landscape and managing operational and financial risks. The company's diversified business segments and geographic presence contributed to its overall positive financial results.
Financial Highlights
54 data points| Revenue | $54.72B |
| Cost of Revenue | $37.00B |
| Gross Profit | $17.73B |
| R&D Expenses | $1.85B |
| SG&A Expenses | $5.48B |
| Operating Expenses | $46.43B |
| Operating Income | $8.29B |
| Net Income | $6.15B |
| EPS (Basic) | $10.39 |
| EPS (Diluted) | $10.26 |
| Shares Outstanding (Basic) | 591.40M |
| Shares Outstanding (Diluted) | 599.40M |
Key Highlights
- 1Sales and revenues increased by 20% to $54.72 billion in 2018, up from $45.46 billion in 2017, driven by higher sales volume across all segments and regions.
- 2Profit per share surged to $10.26 in 2018, a significant increase from $1.26 in 2017, reflecting strong operational performance and benefits from U.S. tax reform.
- 3Operating profit margin improved to 15.2% in 2018, up from 9.8% in 2017, indicating enhanced profitability and operational efficiency.
- 4Machinery, Energy & Transportation (ME&T) operating cash flow was $6.3 billion, sufficient to cover capital expenditures and dividends.
- 5Caterpillar repurchased $3.80 billion of its common stock in 2018 and announced a new $10 billion share repurchase authorization effective January 1, 2019.
- 6Restructuring costs decreased significantly to $386 million in 2018 from $1.256 billion in 2017, reflecting the completion of major restructuring actions.
- 7The Financial Products segment's profit decreased by 23% to $505 million, primarily due to an increase in the provision for credit losses at Cat Financial.