10-QPeriod: Q1 FY2021

CATERPILLAR INC Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 5, 2021For Securities:CAT

Summary

Caterpillar Inc. reported a strong first quarter for 2021, demonstrating significant revenue and profit growth compared to the same period in 2020. Total sales and revenues increased by 12% to $11.887 billion, driven by higher sales volumes across its primary segments, particularly in Asia/Pacific and Latin America, along with favorable currency impacts. The company's operating profit margin improved to 15.3%, up from 13.2% in the prior year, reflecting increased sales and improved profitability in the Financial Products segment. Profit per share also saw a substantial increase, reaching $2.77 compared to $1.98 in the first quarter of 2020. This growth was bolstered by higher sales, favorable foreign exchange movements, and a lower effective tax rate, despite increased Selling, General & Administrative (SG&A) and Research & Development (R&D) expenses, partly due to the reinstatement of short-term incentive compensation. Caterpillar ended the quarter with a robust cash position of $11.3 billion, indicating solid liquidity and operational performance.

Financial Highlights

52 data points
Beta

Revenue

$11.89B

32.6% Gross Margin

Net Income

$1.53B

12.9% Net Margin

EPS (Diluted)

$2.77

Total Assets

$80.73B

Cash & Equivalents

$11.35B

Free Cash Flow

$1.68B

Financial Statements
Beta
Revenue$11.89B
Cost of Revenue$8.01B
Gross Profit$3.88B
R&D Expenses$374.00M
SG&A Expenses$1.24B
Operating Expenses$10.07B
Operating Income$1.81B
Net Income$1.53B
EPS (Basic)$2.80
EPS (Diluted)$2.77
Shares Outstanding (Basic)546.40M
Shares Outstanding (Diluted)551.40M

Key Highlights

  • 1Total sales and revenues increased by 12% to $11.887 billion in Q1 2021, up from $10.635 billion in Q1 2020.
  • 2Operating profit margin improved to 15.3% from 13.2% in the prior year's quarter.
  • 3Profit per share rose to $2.77 in Q1 2021, compared to $1.98 in Q1 2020.
  • 4Enterprise operating cash flow was $1.928 billion, and the company ended the quarter with $11.3 billion in cash.
  • 5Sales increased across all primary segments, with notable growth in Asia/Pacific (32%) and Latin America (26%).
  • 6The Financial Products segment saw an increase in profit, driven by favorable equity securities performance and a lower provision for credit losses.
  • 7Caterpillar acquired SPM Oil & Gas for $356 million, strengthening its Energy & Transportation segment offerings.

Frequently Asked Questions

Caterpillar's revenue increased by 12% to $11.887 billion in the first quarter of 2021. This growth was primarily attributed to higher sales volume, driven by increased end-user demand and a strategic increase in dealer inventories, alongside favorable currency impacts from the euro and Australian dollar.

Profitability improved significantly, with operating profit increasing by 29% and the operating profit margin rising to 15.3% from 13.2% in Q1 2020. Profit per share also saw a substantial jump to $2.77 from $1.98, supported by higher sales volumes, favorable foreign exchange, and a lower effective tax rate, despite increased operating expenses.

Caterpillar maintains a strong liquidity position, ending the first quarter of 2021 with $11.34 billion in cash and short-term investments. Enterprise operating cash flow was $1.928 billion for the quarter, reflecting healthy cash generation from operations.

Yes, Caterpillar completed the acquisition of SPM Oil & Gas on February 1, 2021, for $356 million. This acquisition, which falls within the Energy & Transportation segment, is expected to expand the company's offerings in the well service industry.