10-QPeriod: Q2 FY2024

CATERPILLAR INC Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 7, 2024For Securities:CAT

Summary

Caterpillar Inc. reported its second-quarter 2024 financial results, showing a slight decrease in total sales and revenues to $16.69 billion, down 4% from the prior year, primarily driven by lower sales volume partially offset by favorable price realization. The company's operating profit margin was 20.9%, a slight decrease from 21.1% in Q2 2023, though adjusted operating profit margin improved to 22.4%. Profit per share for the quarter was $5.48, down from $5.67 in the prior year, impacted by increased restructuring costs. For the first six months of 2024, total sales and revenues were $32.49 billion, down 2% year-over-year. The company reported strong operating cash flow of $5.1 billion for the period. Caterpillar maintained a healthy enterprise cash position of $4.3 billion at the end of the second quarter. Looking ahead, Caterpillar anticipates slightly lower full-year sales and revenues compared to 2023, with expectations for increased services revenues and a focus on strategic investments and returning capital to shareholders.

Financial Highlights

53 data points
Beta

Revenue

$16.69B

39.2% Gross Margin

Net Income

$2.68B

16.1% Net Margin

EPS (Diluted)

$5.48

Total Assets

$83.34B

Cash & Equivalents

$4.35B

Free Cash Flow

$2.68B

Financial Statements
Beta
Revenue$16.69B
Cost of Revenue$10.15B
Gross Profit$6.54B
R&D Expenses$535.00M
SG&A Expenses$1.65B
Operating Expenses$13.21B
Operating Income$3.48B
Net Income$2.68B
EPS (Basic)$5.50
EPS (Diluted)$5.48
Shares Outstanding (Basic)487.20M
Shares Outstanding (Diluted)489.50M

Key Highlights

  • 1Total sales and revenues for Q2 2024 decreased by 4% to $16.69 billion, primarily due to lower sales volume, partially offset by favorable price realization.
  • 2Operating profit margin for Q2 2024 was 20.9%, with an adjusted operating profit margin of 22.4%, an improvement from 21.3% in Q2 2023.
  • 3Profit per share for Q2 2024 was $5.48, down from $5.67 in Q2 2023, impacted by higher restructuring costs and other factors.
  • 4For the first six months of 2024, total sales and revenues decreased by 2% to $32.49 billion.
  • 5Enterprise operating cash flow for the first six months of 2024 was $5.1 billion.
  • 6Caterpillar ended Q2 2024 with $4.3 billion in enterprise cash.
  • 7The company expects full-year 2024 sales and revenues to be slightly lower than 2023, with a focus on services revenue growth and capital return to shareholders.

Frequently Asked Questions

The primary driver for the 4% decrease in total sales and revenues to $16.69 billion was a lower sales volume, which was partially offset by favorable price realization. Changes in dealer inventories also played a significant role, with dealer inventory decreasing in Q2 2024 compared to an increase in Q2 2023.

Caterpillar's operating profit margin slightly decreased to 20.9% in Q2 2024 from 21.1% in Q2 2023. However, the adjusted operating profit margin improved to 22.4% from 21.3%, indicating underlying operational improvements when excluding certain items. Profit per share for the quarter was $5.48, down from $5.67 in the prior year, impacted by factors including higher restructuring costs.

For the full year 2024, Caterpillar anticipates slightly lower sales and revenues compared to 2023. The company expects continued growth in services revenues and plans to fund strategic growth initiatives and return capital to shareholders through dividends and share repurchases. Restructuring costs are expected to be around $450 million for the year.

Caterpillar ended the second quarter of 2024 with $4.3 billion in enterprise cash. For the first six months of 2024, the company generated $5.1 billion in operating cash flow, indicating strong liquidity. Caterpillar maintains a robust global credit facility and is focused on maintaining a strong financial position, funding operations, and returning capital to shareholders.