Summary
Caterpillar Inc. reported a strong financial performance for the second quarter and first six months of 2021, demonstrating significant recovery and growth compared to the same periods in 2020. Total sales and revenues saw substantial increases, driven by higher end-user demand across all regions and segments, particularly in Construction Industries and Resource Industries. The company's operating profit margin improved considerably, reflecting higher sales volume, favorable price realization, and the reinstatement of short-term incentive compensation. Profit per share saw a significant jump, with adjusted profit per share also showing robust growth. The company maintained a strong liquidity position with a substantial amount of enterprise cash. While supply chain disruptions and cost pressures remain a focus, Caterpillar has implemented safeguards and contingency plans to mitigate these impacts. The positive financial results and outlook suggest a healthy recovery and continued momentum for the company.
Financial Highlights
53 data points| Revenue | $12.89B |
| Cost of Revenue | $8.88B |
| Gross Profit | $4.01B |
| R&D Expenses | $446.00M |
| SG&A Expenses | $1.36B |
| Operating Expenses | $11.10B |
| Operating Income | $1.79B |
| Net Income | $1.41B |
| EPS (Basic) | $2.58 |
| EPS (Diluted) | $2.56 |
| Shares Outstanding (Basic) | 547.90M |
| Shares Outstanding (Diluted) | 552.10M |
Key Highlights
- 1Total sales and revenues increased by 29% in Q2 2021 to $12.889 billion and by 20% for the first six months to $24.776 billion, driven by strong end-user demand across all regions and segments.
- 2Operating profit margin improved significantly to 13.9% in Q2 2021 (vs. 7.8% in Q2 2020) and 14.5% for the first six months (vs. 10.6% in the prior year), reflecting higher sales volume and price realization.
- 3Profit per share surged to $2.56 in Q2 2021 (vs. $0.84 in Q2 2020) and $5.33 for the first six months (vs. $2.83 in the prior year), with adjusted profit per share also showing substantial growth.
- 4The company ended Q2 2021 with $10.8 billion in enterprise cash, indicating a strong liquidity position.
- 5The Energy & Transportation segment saw a 20% increase in sales in Q2 2021, driven by growth across all applications, including Oil and Gas, Power Generation, and Industrial sectors.
- 6The Financial Products segment reported a significant increase in profit to $243 million in Q2 2021 (vs. $148 million in Q2 2020), primarily due to lower provision for credit losses and higher net yield.
- 7Caterpillar has resumed its share repurchase program and increased its quarterly dividend by 8% to $1.11 per share, signaling confidence in its financial health and future prospects.