Summary
Caterpillar Inc. reported a robust third quarter and first nine months of 2018, demonstrating significant year-over-year improvements in sales, revenues, and profitability. Total sales and revenues for the third quarter reached $13.51 billion, an 18% increase driven by strong demand across its Machinery, Energy & Transportation (ME&T) segments. This top-line growth translated into substantial profit improvement, with profit per share rising to $2.88 compared to $1.77 in the prior year's third quarter. The ME&T segment experienced a notable increase in operating profit margin to 15.8%, up from 13.2% in Q3 2017, reflecting higher sales volume, favorable price realization, and a lower effective tax rate. For the first nine months of 2018, Caterpillar's performance was equally strong, with total sales and revenues up 24% to $40.38 billion, and profit per share more than doubling to $8.45 from $3.44. The company's strategic focus on cost management and operational efficiency, alongside favorable market conditions, contributed to this impressive financial turnaround. While the company incurred restructuring costs, these were significantly lower than the prior year, and the company ended the period with a strong cash position of $8.0 billion, supporting its capital deployment priorities including share repurchases and dividends.
Financial Highlights
49 data points| Revenue | $13.51B |
| Cost of Revenue | $9.02B |
| Gross Profit | $3.74B |
| R&D Expenses | $479.00M |
| SG&A Expenses | $1.30B |
| Operating Expenses | $11.38B |
| Operating Income | $2.13B |
| Net Income | $1.73B |
| EPS (Basic) | $2.92 |
| EPS (Diluted) | $2.88 |
| Shares Outstanding (Basic) | 592.10M |
| Shares Outstanding (Diluted) | 599.40M |
Key Highlights
- 1Third-quarter sales and revenues increased by 18% to $13.51 billion, driven by robust demand across all primary segments.
- 2Profit per share for the third quarter rose to $2.88, a significant increase from $1.77 in the same period last year.
- 3Operating profit margin for ME&T improved to 15.8% in Q3 2018 from 13.2% in Q3 2017.
- 4Nine-month sales and revenues grew by 24% to $40.38 billion, with profit per share more than doubling to $8.45.
- 5Restructuring costs decreased significantly year-over-year, with Q3 costs at $110 million compared to $90 million in Q3 2017, and nine-month costs at $293 million compared to $1.011 billion in the prior year.
- 6The company's cash and short-term investments totaled $8.0 billion as of September 30, 2018, indicating a healthy liquidity position.
- 7Caterpillar repurchased $2.0 billion of common stock in the first nine months of 2018 and had $3.5 billion remaining under its repurchase authorization.