Summary
Caterpillar Inc. (CAT) reported robust financial results for the third quarter and the first nine months of 2021, showcasing a significant recovery and growth compared to the same periods in 2020. Total sales and revenues saw a substantial increase, driven by higher end-user demand for equipment and services across all primary segments, coupled with favorable price realization. The company also benefited from dealers adjusting their inventory levels, though the pace of inventory reduction slowed in the third quarter of 2021 compared to the prior year. Profitability also saw a marked improvement, with operating profit and profit per share increasing significantly. This was attributed to higher sales volumes, favorable pricing, and improved operational efficiencies, partially offset by increased manufacturing costs, selling, general, and administrative expenses, and research and development investments. The company's proactive management of supply chain disruptions and strategic pricing actions helped mitigate some of these cost pressures. Caterpillar ended the period with a strong cash position, underscoring its financial resilience and operational effectiveness amidst evolving global business conditions.
Financial Highlights
53 data points| Revenue | $12.40B |
| Cost of Revenue | $8.62B |
| Gross Profit | $3.78B |
| R&D Expenses | $427.00M |
| SG&A Expenses | $1.34B |
| Operating Expenses | $10.73B |
| Operating Income | $1.66B |
| Net Income | $1.43B |
| EPS (Basic) | $2.62 |
| EPS (Diluted) | $2.60 |
| Shares Outstanding (Basic) | 544.00M |
| Shares Outstanding (Diluted) | 547.60M |
Key Highlights
- 1Total sales and revenues increased by 25% to $12.397 billion in Q3 2021 compared to Q3 2020, and by 22% to $37.173 billion for the nine months ended September 30, 2021, driven by higher demand and price realization.
- 2Operating profit margin improved to 13.4% in Q3 2021 (from 10.0% in Q3 2020) and 14.2% for the nine months ended September 30, 2021 (from 10.4% in the prior year period).
- 3Profit per share for Q3 2021 was $2.60, a significant increase from $1.22 in Q3 2020. For the nine months, profit per share was $7.94, up from $4.05 in the prior year.
- 4Enterprise operating cash flow was strong at $5.8 billion for the first nine months of 2021.
- 5Caterpillar ended Q3 2021 with $9.4 billion in enterprise cash, maintaining a solid liquidity position.
- 6Sales and revenues increased across all three primary segments (Construction Industries, Resource Industries, and Energy & Transportation), reflecting broad-based demand recovery.
- 7The company is actively managing supply chain disruptions and associated cost increases through proactive measures and strategic pricing.