Summary
Caterpillar Inc. reported solid results for the second quarter and first half of 2019, demonstrating a year-over-year increase in both sales and profit. Total sales and revenues for the second quarter reached $14.432 billion, a 3% increase from the prior year, driven by higher demand, favorable price realization, and a positive impact from changes in dealer inventories. This growth was tempered slightly by unfavorable currency impacts. For the six-month period, sales and revenues grew by 4% to $27.898 billion. Profit per share saw a healthy increase, reaching $2.83 for the second quarter and $6.08 for the six months, compared to $2.82 and $5.56 respectively in the prior year. The company highlighted strong operating cash flow for its Machinery, Energy & Transportation (ME&T) segment, with capital being actively deployed through share repurchases and dividends. Despite some challenges like higher manufacturing costs and unfavorable product mix in certain segments, Caterpillar's overall performance indicates resilience and strategic execution in a dynamic market environment.
Financial Highlights
52 data points| Revenue | $14.43B |
| Cost of Revenue | $9.94B |
| Gross Profit | $3.73B |
| R&D Expenses | $441.00M |
| SG&A Expenses | $1.31B |
| Operating Expenses | $12.22B |
| Operating Income | $2.21B |
| Net Income | $1.62B |
| EPS (Basic) | $2.85 |
| EPS (Diluted) | $2.83 |
| Shares Outstanding (Basic) | 567.80M |
| Shares Outstanding (Diluted) | 573.10M |
Key Highlights
- 1Total sales and revenues increased by 3% to $14.432 billion in Q2 2019 compared to $14.011 billion in Q2 2018.
- 2Profit per share rose to $2.83 in Q2 2019 from $2.82 in Q2 2018.
- 3For the first six months of 2019, sales and revenues increased by 4% to $27.898 billion, and profit per share increased by 9% to $6.08.
- 4The Machinery, Energy & Transportation (ME&T) segment reported robust operating cash flow of $2.0 billion for Q2 2019 and $2.8 billion for the first six months.
- 5The company returned significant capital to shareholders, repurchasing $1.4 billion of common stock in Q2 2019 and paying a dividend of $492 million.
- 6Construction Industries and Resource Industries segments showed strong sales growth, up 5% and 11% respectively in Q2 2019, driven by higher demand and price realization.
- 7Financial Products segment revenues increased by 5% in Q2 2019, with profit up 44%, benefiting from lower provision for credit losses and higher average earning assets.