Summary
Caterpillar Inc. (CAT) reported strong sales and revenue growth for the fiscal year 2022, reaching $59.427 billion, a 17% increase over 2021, driven by favorable price realization and higher sales volumes across its Construction Industries, Resource Industries, and Energy & Transportation segments. Despite increased manufacturing costs and SG&A expenses, the company maintained a healthy operating profit margin of 13.3%. A significant event was a $925 million goodwill impairment charge related to the Rail division, impacting the overall profit per share. However, adjusted profit per share saw a notable increase, reflecting underlying operational strength. The company's outlook for 2023 remains positive, with expectations for continued sales growth driven by strong order backlogs and improving supply chain dynamics. Caterpillar is strategically investing in services, digital technologies, electrification, and autonomy to fuel long-term profitable growth. The company's robust operating cash flow and substantial liquidity position underscore its financial stability, enabling continued returns to shareholders through dividends and share repurchases, while maintaining a mid-A credit rating. Investors should monitor commodity price trends and global economic conditions, as these remain key factors influencing demand for Caterpillar's products.
Financial Highlights
55 data points| Revenue | $59.43B |
| Cost of Revenue | $41.35B |
| Gross Profit | $18.08B |
| R&D Expenses | $1.81B |
| SG&A Expenses | $5.65B |
| Operating Expenses | $51.52B |
| Operating Income | $7.90B |
| Net Income | $6.71B |
| EPS (Basic) | $12.72 |
| EPS (Diluted) | $12.64 |
| Shares Outstanding (Basic) | 526.90M |
| Shares Outstanding (Diluted) | 530.40M |
Key Highlights
- 1Total sales and revenues increased by 17% to $59.427 billion in 2022, up from $50.971 billion in 2021.
- 2Operating profit increased by 15% to $7.904 billion, with an operating profit margin of 13.3%.
- 3Profit per share was $12.64 in 2022, compared to $11.83 in 2021. Adjusted profit per share was $13.84 in 2022, up from $10.81 in 2021.
- 4A goodwill impairment charge of $925 million was recorded for the Rail reporting unit.
- 5Enterprise operating cash flow was $7.8 billion in 2022.
- 6The order backlog increased to approximately $30.4 billion at December 31, 2022, up from $23.1 billion at December 31, 2021.