Summary
Caterpillar Inc. reported a solid increase in sales and revenues for the second quarter and first half of 2022 compared to the prior year. Total sales and revenues reached $14.25 billion in Q2 2022, an 11% increase, driven by favorable price realization and higher sales volumes across its primary segments. For the first half of 2022, sales and revenues grew by 12% to $27.84 billion. Despite the revenue growth, operating profit margin saw a slight decrease to 13.6% in Q2 2022 from 13.9% in Q2 2021, attributed to higher manufacturing, selling, general and administrative, and research and development expenses, largely due to increased material, freight, and incentive compensation costs. Profit per share also saw an increase, with Q2 2022 diluted EPS at $3.13 compared to $2.56 in Q2 2021. The company ended the quarter with $6.01 billion in enterprise cash and reported positive operating cash flow for the first six months of the year, though lower than the previous year.
Financial Highlights
53 data points| Revenue | $14.25B |
| Cost of Revenue | $9.97B |
| Gross Profit | $4.27B |
| R&D Expenses | $480.00M |
| SG&A Expenses | $1.43B |
| Operating Expenses | $12.30B |
| Operating Income | $1.94B |
| Net Income | $1.67B |
| EPS (Basic) | $3.15 |
| EPS (Diluted) | $3.13 |
| Shares Outstanding (Basic) | 531.00M |
| Shares Outstanding (Diluted) | 534.10M |
Key Highlights
- 1Total sales and revenues increased by 11% to $14.25 billion in Q2 2022 and by 12% to $27.84 billion for the first six months of 2022, driven by favorable price realization and higher sales volumes.
- 2Operating profit margin slightly decreased to 13.6% in Q2 2022 and 13.6% for the first six months, compared to 13.9% and 14.5% respectively in the prior year periods, impacted by higher manufacturing costs and increased SG&A/R&D expenses.
- 3Diluted earnings per share (EPS) increased to $3.13 in Q2 2022 from $2.56 in Q2 2021, and to $5.99 for the first six months from $5.33 in the prior year.
- 4The company maintained strong liquidity with $6.01 billion in enterprise cash at the end of Q2 2022.
- 5Operating cash flow for the first six months was $2.55 billion, down from $4.05 billion in the prior year, primarily due to higher incentive compensation payments and increased working capital requirements.
- 6Construction Industries, Resource Industries, and Energy & Transportation segments all reported sales increases for both the quarter and year-to-date periods.
- 7The company's order backlog stood at approximately $28.5 billion at the end of Q2 2022, with about $5.3 billion expected to be filled beyond the next twelve months.