CATERPILLAR INC Quarterly Report for Q1 Ended Mar 31, 2021

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.

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.

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