Third-quarter 2022 sales and revenues increased 21% to $15.0 billion
Third-quarter 2022 profit per share of $3.87; adjusted profit per share of $3.95
Returned $2.0 billion to shareholders through share repurchases and dividends in the quarter
IRVING, Texas, Oct. 27, 2022 /PRNewswire/ —
|
Third Quarter |
|||
|
($ in billions except profit per share) |
2022 |
2021 |
|
|
Sales and Revenues |
$15.0 |
$12.4 |
|
|
Profit Per Share |
$3.87 |
$2.60 |
|
|
Adjusted Profit Per Share |
$3.95 |
$2.66 |
|
Caterpillar Inc. (NYSE: CAT) announced third-quarter 2022 sales and revenues of $15.0 billion, a 21% increase compared with $12.4 billion in the third quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume.
Operating profit margin was 16.2% for the third quarter of 2022, compared with 13.4% for the third quarter of 2021. Third-quarter 2022 profit per share was $3.87, compared with third-quarter 2021 profit per share of $2.60. Adjusted profit per share in the third quarter of 2022 was $3.95, compared with third-quarter 2021 adjusted profit per share of $2.66. Adjusted profit per share for both quarters excluded restructuring costs. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.
For the nine months ended September 30, 2022, enterprise operating cash flow was $5.0 billion, and the company ended the third quarter with $6.3 billion of enterprise cash. In the quarter, the company repurchased $1.4 billion of Caterpillar common stock and paid dividends of $0.6 billion.
“I’d like to thank our global Caterpillar team for delivering another quarter of double-digit top-line growth and record adjusted profit per share,” said Chairman and CEO Jim Umpleby. “Our team remains focused on serving our customers as we continued to see healthy demand across most of our end markets during the third quarter.”
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison Third Quarter 2022 vs. Third Quarter 2021
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar third-quarter 2022 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the third quarter of 2021 (at left) and the third quarter of 2022 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees.
Total sales and revenues for the third quarter of 2022 were $14.994 billion, an increase of $2.597 billion, or 21%, compared with $12.397 billion in the third quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories, higher sales of equipment to end users and higher services. Dealers increased inventories by $700 million during the third quarter of 2022, compared with a decrease of $300 million during the third quarter of 2021.
Sales were higher across the three primary segments.
|
Sales and Revenues by Segment |
|||||||||||||||
|
(Millions of dollars) |
Third |
Sales Volume |
Price Realization |
Currency |
Inter- |
Third |
$ Change |
% Change |
|||||||
|
Construction Industries |
$ 5,255 |
$ 423 |
$ 781 |
$ (229) |
$ 46 |
$ 6,276 |
$ 1,021 |
19 % |
|||||||
|
Resource Industries |
2,366 |
338 |
443 |
(59) |
(1) |
3,087 |
721 |
30 % |
|||||||
|
Energy & Transportation |
5,077 |
618 |
409 |
(171) |
253 |
6,186 |
1,109 |
22 % |
|||||||
|
All Other Segment |
119 |
2 |
— |
(2) |
(16) |
103 |
(16) |
(13 %) |
|||||||
|
Corporate Items and Eliminations |
(1,110) |
16 |
2 |
— |
(282) |
(1,374) |
(264) |
||||||||
|
Machinery, Energy & Transportation |
11,707 |
1,397 |
1,635 |
(461) |
— |
14,278 |
2,571 |
22 % |
|||||||
|
Financial Products Segment |
762 |
— |
— |
— |
57 |
819 |
57 |
7 % |
|||||||
|
Corporate Items and Eliminations |
(72) |
— |
— |
— |
(31) |
(103) |
(31) |
||||||||
|
Financial Products Revenues |
690 |
— |
— |
— |
26 |
716 |
26 |
4 % |
|||||||
|
Consolidated Sales and Revenues |
$ 12,397 |
$ 1,397 |
$ 1,635 |
$ (461) |
$ 26 |
$ 14,994 |
$ 2,597 |
21 % |
|||||||
|
Sales and Revenues by Geographic Region |
|||||||||||||||||||||||||||
|
North America |
Latin America |
EAME |
Asia/Pacific |
External Sales |
Inter-Segment |
Total Sales |
|||||||||||||||||||||
|
(Millions of dollars) |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
$ |
% Chg |
|||||||||||||
|
Third Quarter 2022 |
|||||||||||||||||||||||||||
|
Construction Industries |
$ 3,106 |
29 % |
$ 799 |
51 % |
$ 1,247 |
1 % |
$ 1,084 |
1 % |
$ 6,236 |
19 % |
$ 40 |
767 % |
$ 6,276 |
19 % |
|||||||||||||
|
Resource Industries |
1,122 |
66 % |
472 |
13 % |
526 |
15 % |
893 |
20 % |
3,013 |
32 % |
74 |
(1 %) |
3,087 |
30 % |
|||||||||||||
|
Energy & Transportation |
2,422 |
26 % |
468 |
42 % |
1,280 |
12 % |
827 |
11 % |
4,997 |
21 % |
1,189 |
27 % |
6,186 |
22 % |
|||||||||||||
|
All Other Segment |
16 |
(11 %) |
— |
— % |
4 |
33 % |
15 |
7 % |
35 |
— % |
68 |
(19 %) |
103 |
(13 %) |
|||||||||||||
|
Corporate Items and Eliminations |
1 |
— |
— |
(4) |
(3) |
(1,371) |
(1,374) |
||||||||||||||||||||
|
Machinery, Energy & Transportation |
6,667 |
33 % |
1,739 |
36 % |
3,057 |
8 % |
2,815 |
9 % |
14,278 |
22 % |
— |
— % |
14,278 |
22 % |
|||||||||||||
|
Financial Products Segment |
522 |
9 % |
90 |
32 % |
100 |
(5 %) |
107 |
(4 %) |
819 |
7 % |
— |
— % |
819 |
7 % |
|||||||||||||
|
Corporate Items and Eliminations |
(54) |
(20) |
(12) |
(17) |
(103) |
— |
(103) |
||||||||||||||||||||
|
Financial Products Revenues |
468 |
6 % |
70 |
27 % |
88 |
(8 %) |
90 |
(8 %) |
716 |
4 % |
— |
— % |
716 |
4 % |
|||||||||||||
|
Consolidated Sales and Revenues |
$ 7,135 |
31 % |
$ 1,809 |
36 % |
$ 3,145 |
7 % |
$ 2,905 |
9 % |
$ 14,994 |
21 % |
$ — |
— % |
$ 14,994 |
21 % |
|||||||||||||
|
Third Quarter 2021 |
|||||||||||||||||||||||||||
|
Construction Industries |
$ 2,417 |
$ 528 |
$ 1,240 |
$ 1,076 |
$ 5,261 |
$ (6) |
$ 5,255 |
||||||||||||||||||||
|
Resource Industries |
674 |
417 |
456 |
744 |
2,291 |
75 |
2,366 |
||||||||||||||||||||
|
Energy & Transportation |
1,924 |
329 |
1,144 |
744 |
4,141 |
936 |
5,077 |
||||||||||||||||||||
|
All Other Segment |
18 |
— |
3 |
14 |
35 |
84 |
119 |
||||||||||||||||||||
|
Corporate Items and Eliminations |
(19) |
— |
— |
(2) |
(21) |
(1,089) |
(1,110) |
||||||||||||||||||||
|
Machinery, Energy & Transportation |
5,014 |
1,274 |
2,843 |
2,576 |
11,707 |
— |
11,707 |
||||||||||||||||||||
|
Financial Products Segment |
478 |
68 |
105 |
111 |
762 |
— |
762 |
||||||||||||||||||||
|
Corporate Items and Eliminations |
(37) |
(13) |
(9) |
(13) |
(72) |
— |
(72) |
||||||||||||||||||||
|
Financial Products Revenues |
441 |
55 |
96 |
98 |
690 |
— |
690 |
||||||||||||||||||||
|
Consolidated Sales and Revenues |
$ 5,455 |
$ 1,329 |
$ 2,939 |
$ 2,674 |
$ 12,397 |
$ — |
$ 12,397 |
||||||||||||||||||||
Consolidated Operating Profit
Consolidated Operating Profit Comparison Third Quarter 2022 vs. Third Quarter 2021
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar third-quarter 2022 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the third quarter of 2021 (at left) and the third quarter of 2022 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation’s other operating (income) expenses.
Operating profit for the third quarter of 2022 was $2.425 billion, an increase of $761 million, or 46%, compared with $1.664 billion in the third quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume, partially offset by higher manufacturing costs and higher selling, general and administrative (SG&A) and research and development (R&D) expenses. Unfavorable manufacturing costs largely reflected higher material costs, freight and the impact of manufacturing inefficiencies. SG&A/R&D expenses increased primarily due to investments aligned with the company’s strategy for profitable growth and higher short-term incentive compensation expense.
|
Profit by Segment |
|||||||
|
(Millions of dollars) |
Third Quarter |
Third Quarter |
$ Change |
% Change |
|||
|
Construction Industries |
$ 1,209 |
$ 866 |
$ 343 |
40 % |
|||
|
Resource Industries |
506 |
280 |
226 |
81 % |
|||
|
Energy & Transportation |
935 |
706 |
229 |
32 % |
|||
|
All Other Segment |
8 |
5 |
3 |
60 % |
|||
|
Corporate Items and Eliminations |
(373) |
(286) |
(87) |
||||
|
Machinery, Energy & Transportation |
2,285 |
1,571 |
714 |
45 % |
|||
|
Financial Products Segment |
220 |
173 |
47 |
27 % |
|||
|
Corporate Items and Eliminations |
30 |
(7) |
37 |
||||
|
Financial Products |
250 |
166 |
84 |
51 % |
|||
|
Consolidating Adjustments |
(110) |
(73) |
(37) |
||||
|
Consolidated Operating Profit |
$ 2,425 |
$ 1,664 |
$ 761 |
46 % |
|||
|
Corporate Items and Eliminations included corporate-level expenses, timing differences (as some expenses are reported in segment profit on a cash basis), methodology differences between segment and consolidated external reporting (the company values segment inventories and cost of sales using a current cost methodology), certain restructuring costs and inter-segment eliminations. |
|||||||
Other Profit/Loss and Tax Items
Other income (expense) in the third quarter of 2022 was income of $242 million, compared with income of $225 million in the third quarter of 2021. The change was primarily driven by favorable impacts from foreign currency exchange and higher investment and interest income, partially offset by lower gains on marketable securities and lower pension and other postemployment benefit (OPEB) plan income.
The provision for income taxes for the third quarter of 2022 reflected an estimated annual global tax rate of approximately 23%, compared with 25% for the third quarter of 2021, excluding the discrete items discussed below. The comparative tax rate for full-year 2021 was 23%.
In the third quarter of 2022, the company reached a settlement with the U.S. Internal Revenue Service (IRS) that resolves all issues for tax years 2007 through 2016, without any penalties. The company’s settlement includes, among other issues, the resolution of disputed tax treatment of profits earned by Caterpillar SARL (CSARL) from certain parts transactions. The company vigorously contested the IRS’s application of the “substance-over-form” or “assignment-of-income” judicial doctrines and its proposed increases to tax and imposition of accuracy related penalties. The settlement does not include any increases to tax in the United States based on those judicial doctrines and does not include any penalties. The final tax assessed by the IRS for all issues under the settlement was $490 million for the ten-year period. This amount was primarily paid in the third quarter of 2022, and the associated estimated interest of $250 million is expected to be paid by the end of 2022. The settlement was within the total amount of gross unrecognized tax benefits for uncertain tax positions and enables us to avoid the costs and burdens of further disputes with the IRS. As a result of the settlement, the company recorded a discrete tax benefit of $41 million to reflect changes in estimates of prior years’ taxes and related interest, net of tax. The company is subject to the continuous examination of our income tax returns by the IRS, and tax years subsequent to 2016 are not yet under examination.
The provision for income taxes in third quarter of 2022 also included a $20 million benefit due to a decrease in the estimated annual tax rate, compared to $39 million in the third quarter of 2021. The company also recorded a discrete tax benefit of $36 million to reflect changes in estimates related to the prior year’s U.S. taxes in the third quarter of 2021.
|
CONSTRUCTION INDUSTRIES |
||||||||||||||||
|
(Millions of dollars) |
||||||||||||||||
|
Segment Sales |
||||||||||||||||
|
Third |
Sales |
Price |
Currency |
Inter- |
Third |
$ Change |
% Change |
|||||||||
|
Total Sales |
$ 5,255 |
$ 423 |
$ 781 |
$ (229) |
$ 46 |
$ 6,276 |
$ 1,021 |
19 % |
||||||||
|
Sales by Geographic Region |
||||||||||||||||
|
Third |
Third |
$ Change |
% Change |
|||||||||||||
|
North America |
$ 3,106 |
$ 2,417 |
$ 689 |
29 % |
||||||||||||
|
Latin America |
799 |
528 |
271 |
51 % |
||||||||||||
|
EAME |
1,247 |
1,240 |
7 |
1 % |
||||||||||||
|
Asia/Pacific |
1,084 |
1,076 |
8 |
1 % |
||||||||||||
|
External Sales |
6,236 |
5,261 |
975 |
19 % |
||||||||||||
|
Inter-segment |
40 |
(6) |
46 |
767 % |
||||||||||||
|
Total Sales |
$ 6,276 |
$ 5,255 |
$ 1,021 |
19 % |
||||||||||||
|
Segment Profit |
||||||||||||||||
|
Third |
Third |
Change |
% Change |
|||||||||||||
|
Segment Profit |
$ 1,209 |
$ 866 |
$ 343 |
40 % |
||||||||||||
|
Segment Profit Margin |
19.3 % |
16.5 % |
2.8 pts |
|||||||||||||
Construction Industries’ total sales were $6.276 billion in the third quarter of 2022, an increase of $1.021 billion, or 19%, compared with $5.255 billion in the third quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories. Dealer inventory increased during the third quarter of 2022, compared with a decrease during the third quarter of 2021.
In North America, sales increased due to favorable price realization and higher sales volume. Higher sales volume was driven by the impact from changes in dealer inventories. Dealer inventory decreased during the third quarter of 2021, compared with an increase during the third quarter of 2022.
Sales increased in Latin America primarily due to higher sales volume and favorable price realization. Higher sales volume was driven by higher sales of equipment to end users and the impact from changes in dealer inventories. Dealer inventory increased more during the third quarter of 2022 than during the third quarter of 2021.
In EAME, sales were about flat. Unfavorable currency impacts, primarily related to the euro, were offset by favorable price realization.
Sales were about flat in Asia/Pacific. Favorable price realization was offset by unfavorable currency impacts, primarily related to the Japanese yen and Australian dollar.
Construction Industries’ profit was $1.209 billion in the third quarter of 2022, an increase of $343 million, or 40%, compared with $866 million in the third quarter of 2021. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs largely reflected higher material costs, freight and the impact of manufacturing inefficiencies. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives and higher short-term incentive compensation expense.
|
RESOURCE INDUSTRIES |
||||||||||||||||
|
(Millions of dollars) |
||||||||||||||||
|
Segment Sales |
||||||||||||||||
|
Third |
Sales |
Price |
Currency |
Inter- |
Third |
$ Change |
% Change |
|||||||||
|
Total Sales |
$ 2,366 |
$ 338 |
$ 443 |
$ (59) |
$ (1) |
$ 3,087 |
$ 721 |
30 % |
||||||||
|
Sales by Geographic Region |
||||||||||||||||
|
Third |
Third |
$ Change |
% Change |
|||||||||||||
|
North America |
$ 1,122 |
$ 674 |
$ 448 |
66 % |
||||||||||||
|
Latin America |
472 |
417 |
55 |
13 % |
||||||||||||
|
EAME |
526 |
456 |
70 |
15 % |
||||||||||||
|
Asia/Pacific |
893 |
744 |
149 |
20 % |
||||||||||||
|
External Sales |
3,013 |
2,291 |
722 |
32 % |
||||||||||||
|
Inter-segment |
74 |
75 |
(1) |
(1 %) |
||||||||||||
|
Total Sales |
$ 3,087 |
$ 2,366 |
$ 721 |
30 % |
||||||||||||
|
Segment Profit |
||||||||||||||||
|
Third |
Third |
Change |
% Change |
|||||||||||||
|
Segment Profit |
$ 506 |
$ 280 |
$ 226 |
81 % |
||||||||||||
|
Segment Profit Margin |
16.4 % |
11.8 % |
4.6 pts |
|||||||||||||
Resource Industries’ total sales were $3.087 billion in the third quarter of 2022, an increase of $721 million, or 30%, compared with $2.366 billion in the third quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume. The increase in sales volume was due to the impact of changes in dealer inventories, higher sales of aftermarket parts and higher sales of equipment to end users. Dealer inventory decreased during the third quarter of 2021, compared with an increase during the third quarter of 2022.
Resource Industries’ profit was $506 million in the third quarter of 2022, an increase of $226 million, or 81%, compared with $280 million in the third quarter of 2021. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs largely reflected higher material costs, freight and the impact of manufacturing inefficiencies. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives.
|
ENERGY & TRANSPORTATION |
||||||||||||||||
|
(Millions of dollars) |
||||||||||||||||
|
Segment Sales |
||||||||||||||||
|
Third |
Sales |
Price |
Currency |
Inter- |
Third |
$ Change |
% Change |
|||||||||
|
Total Sales |
$ 5,077 |
$ 618 |
$ 409 |
$ (171) |
$ 253 |
$ 6,186 |
$ 1,109 |
22 % |
||||||||
|
Sales by Application |
||||||||||||||||
|
Third |
Third |
$ Change |
% Change |
|||||||||||||
|
Oil and Gas |
$ 1,323 |
$ 1,088 |
$ 235 |
22 % |
||||||||||||
|
Power Generation |
1,320 |
1,010 |
310 |
31 % |
||||||||||||
|
Industrial |
1,158 |
948 |
210 |
22 % |
||||||||||||
|
Transportation |
1,196 |
1,095 |
101 |
9 % |
||||||||||||
|
External Sales |
4,997 |
4,141 |
856 |
21 % |
||||||||||||
|
Inter-segment |
1,189 |
936 |
253 |
27 % |
||||||||||||
|
Total Sales |
$ 6,186 |
$ 5,077 |
$ 1,109 |
22 % |
||||||||||||
|
Segment Profit |
||||||||||||||||
|
Third |
Third |
Change |
% Change |
|||||||||||||
|
Segment Profit |
$ 935 |
$ 706 |
$ 229 |
32 % |
||||||||||||
|
Segment Profit Margin |
15.1 % |
13.9 % |
1.2 pts |
|||||||||||||
Energy & Transportation’s total sales were $6.186 billion in the third quarter of 2022, an increase of $1.109 billion, or 22%, compared with $5.077 billion in the third quarter of 2021. Sales increased across all applications and inter-segment sales. The increase in sales was primarily due to higher sales volume and favorable price realization, partially offset by unfavorable currency impacts.
Oil and Gas – Sales increased due to higher sales of reciprocating engine aftermarket parts and engines used in gas compression and well servicing applications.
Power Generation – Sales increased in large reciprocating engines, primarily data center applications, and small reciprocating engines. Turbines and turbine-related services increased as well.
Industrial – Sales were up across all regions.
Transportation – Sales increased in reciprocating engine aftermarket parts and marine applications. International locomotive deliveries were also higher.
Energy & Transportation’s profit was $935 million in the third quarter of 2022, an increase of $229 million, or 32%, compared with $706 million in the third quarter of 2021. The increase was driven by favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs largely reflected higher material costs, freight and the impact of manufacturing inefficiencies. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives, higher labor-related costs and higher short-term incentive compensation expense.
|
FINANCIAL PRODUCTS SEGMENT |
||||||||||||||||
|
(Millions of dollars) |
||||||||||||||||
|
Revenues by Geographic Region |
||||||||||||||||
|
Third |
Third |
$ Change |
% Change |
|||||||||||||
|
North America |
$ 522 |
$ 478 |
$ 44 |
9 % |
||||||||||||
|
Latin America |
90 |
68 |
22 |
32 % |
||||||||||||
|
EAME |
100 |
105 |
(5) |
(5 %) |
||||||||||||
|
Asia/Pacific |
107 |
111 |
(4) |
(4 %) |
||||||||||||
|
Total Revenues |
$ 819 |
$ 762 |
$ 57 |
7 % |
||||||||||||
|
Segment Profit |
||||||||||||||||
|
Third |
Third |
Change |
% Change |
|||||||||||||
|
Segment Profit |
$ 220 |
$ 173 |
$ 47 |
27 % |
||||||||||||
Financial Products’ segment revenues were $819 million in the third quarter of 2022, an increase of $57 million, or 7%, compared with $762 million in the third quarter of 2021. The increase was primarily due to higher average financing rates in North America and Latin America.
Financial Products’ segment profit was $220 million in the third quarter of 2022, an increase of $47 million, or 27%, compared with $173 million in the third quarter of 2021. The increase was mainly due to a favorable impact from a lower provision for credit losses at Cat Financial, partially offset by mark-to-market adjustments on derivative contracts.
At the end of the third quarter of 2022, past dues at Cat Financial were 2.00%, compared with 2.41% at the end of the third quarter of 2021. Past dues decreased across all our portfolio segments, with the exception of an increase in Latin America. Write-offs, net of recoveries, were $13 million for the third quarter of 2022, compared with $76 million for the third quarter of 2021. As of September 30, 2022, Cat Financial’s allowance for credit losses totaled $339 million, or 1.30% of finance receivables, compared with $376 million, or 1.41% of finance receivables, at June 30, 2022. The allowance for credit losses at year-end 2021 was $337 million, or 1.22% of finance receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $343 million in the third quarter of 2022, an increase of $50 million from the third quarter of 2021, primarily driven by increased expenses due to timing differences, partially offset by favorable impacts of segment reporting methodology differences and lower corporate costs.
Notes
i. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.ii. Sales of equipment to end users is demonstrated by the company’s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Thursday, October 27, 2022.iii. Information on non-GAAP financial measures is included in the appendix on page 13.iv. Some amounts within this report are rounded to the millions or billions and may not add.v. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Thursday, October 27, 2022, to discuss its 2022 third-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.
About CaterpillarWith 2021 sales and revenues of $51.0 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.
Caterpillar’s latest financial results are also available online:
https://investors.caterpillar.com/overview/default.aspx
https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)
Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “forecast,” “target,” “guide,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers’ needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment’s risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial’s customers; (xviii) currency fluctuations; (xix) our or Cat Financial’s compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar’s Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.
The company believes it is important to separately quantify the profit impact of one significant item in order for the company’s results to be meaningful to readers. This item consists of (i) restructuring costs, which were incurred to generate longer-term benefits. The company does not consider this item indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2022, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans along with any other discrete items.
Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:
|
(Dollars in millions except per share data) |
Operating |
Operating |
Profit |
Provision |
Effective |
Profit |
Profit per |
|||||||
|
Three Months Ended September 30, 2022 – U.S. GAAP |
$ 2,425 |
16.2 % |
$ 2,558 |
$ 527 |
20.6 % |
$ 2,041 |
$ 3.87 |
|||||||
|
Restructuring costs |
49 |
0.3 % |
49 |
9 |
18.4 % |
40 |
$ 0.08 |
|||||||
|
Three Months Ended September 30, 2022 – Adjusted |
$ 2,474 |
16.5 % |
$ 2,607 |
$ 536 |
20.6 % |
$ 2,081 |
$ 3.95 |
|||||||
|
Three Months Ended September 30, 2021 – U.S. GAAP |
$ 1,664 |
13.4 % |
$ 1,775 |
$ 368 |
20.7 % |
$ 1,426 |
$ 2.60 |
|||||||
|
Restructuring costs |
35 |
0.3 % |
35 |
6 |
15.0 % |
29 |
$ 0.06 |
|||||||
|
Three Months Ended September 30, 2021 – Adjusted |
$ 1,699 |
13.7 % |
$ 1,810 |
$ 374 |
20.7 % |
$ 1,455 |
$ 2.66 |
|||||||
Supplemental Consolidating Data
The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:
Consolidated – Caterpillar Inc. and its subsidiaries.
Machinery, Energy & Transportation (ME&T) – The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T’s information relates to the design, manufacturing and marketing of its products.
Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.
Consolidating Adjustments – Eliminations of transactions between ME&T and Financial Products.
The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.
Pages 14 to 24 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.
|
Caterpillar Inc.Condensed Consolidated Statement of Results of Operations(Unaudited)(Dollars in millions except per share data) |
|||||||
|
Three Months Ended |
Nine Months Ended |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
Sales and revenues: |
|||||||
|
Sales of Machinery, Energy & Transportation |
$ 14,278 |
$ 11,707 |
$ 40,703 |
$ 35,091 |
|||
|
Revenues of Financial Products |
716 |
690 |
2,127 |
2,082 |
|||
|
Total sales and revenues |
14,994 |
12,397 |
42,830 |
37,173 |
|||
|
Operating costs: |
|||||||
|
Cost of goods sold |
10,202 |
8,617 |
29,736 |
25,510 |
|||
|
Selling, general and administrative expenses |
1,401 |
1,340 |
4,172 |
3,943 |
|||
|
Research and development expenses |
476 |
427 |
1,413 |
1,247 |
|||
|
Interest expense of Financial Products |
151 |
111 |
377 |
352 |
|||
|
Other operating (income) expenses |
339 |
238 |
908 |
854 |
|||
|
Total operating costs |
12,569 |
10,733 |
36,606 |
31,906 |
|||
|
Operating profit |
2,425 |
1,664 |
6,224 |
5,267 |
|||
|
Interest expense excluding Financial Products |
109 |
114 |
326 |
376 |
|||
|
Other income (expense) |
242 |
225 |
755 |
751 |
|||
|
Consolidated profit before taxes |
2,558 |
1,775 |
6,653 |
5,642 |
|||
|
Provision (benefit) for income taxes |
527 |
368 |
1,423 |
1,313 |
|||
|
Profit of consolidated companies |
2,031 |
1,407 |
5,230 |
4,329 |
|||
|
Equity in profit (loss) of unconsolidated affiliated companies |
9 |
21 |
20 |
44 |
|||
|
Profit of consolidated and affiliated companies |
2,040 |
1,428 |
5,250 |
4,373 |
|||
|
Less: Profit (loss) attributable to noncontrolling interests |
(1) |
2 |
(1) |
4 |
|||
|
Profit 1 |
$ 2,041 |
$ 1,426 |
$ 5,251 |
$ 4,369 |
|||
|
Profit per common share |
$ 3.89 |
$ 2.62 |
$ 9.91 |
$ 8.00 |
|||
|
Profit per common share — diluted 2 |
$ 3.87 |
$ 2.60 |
$ 9.85 |
$ 7.94 |
|||
|
Weighted-average common shares outstanding (millions) |
|||||||
|
– Basic |
525.0 |
544.0 |
530.1 |
545.8 |
|||
|
– Diluted 2 |
527.6 |
547.6 |
533.2 |
550.2 |
|||
|
1 |
Profit attributable to common shareholders. |
|
2 |
Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. |
|
Caterpillar Inc. |
|||
|
September 30, |
December 31, |
||
|
Assets |
|||
|
Current assets: |
|||
|
Cash and cash equivalents |
$ 6,346 |
$ 9,254 |
|
|
Receivables – trade and other |
8,158 |
8,477 |
|
|
Receivables – finance |
8,918 |
8,898 |
|
|
Prepaid expenses and other current assets |
2,295 |
2,788 |
|
|
Inventories |
16,860 |
14,038 |
|
|
Total current assets |
42,577 |
43,455 |
|
|
Property, plant and equipment – net |
11,643 |
12,090 |
|
|
Long-term receivables – trade and other |
1,278 |
1,204 |
|
|
Long-term receivables – finance |
11,859 |
12,707 |
|
|
Noncurrent deferred and refundable income taxes |
2,218 |
1,840 |
|
|
Intangible assets |
806 |
1,042 |
|
|
Goodwill |
6,092 |
6,324 |
|
|
Other assets |
4,434 |
4,131 |
|
|
Total assets |
$ 80,907 |
$ 82,793 |
|
|
Liabilities |
|||
|
Current liabilities: |
|||
|
Short-term borrowings: |
|||
|
— Machinery, Energy & Transportation |
$ 3 |
$ 9 |
|
|
— Financial Products |
4,199 |
5,395 |
|
|
Accounts payable |
8,260 |
8,154 |
|
|
Accrued expenses |
4,013 |
3,757 |
|
|
Accrued wages, salaries and employee benefits |
2,204 |
2,242 |
|
|
Customer advances |
1,831 |
1,087 |
|
|
Dividends payable |
— |
595 |
|
|
Other current liabilities |
2,878 |
2,256 |
|
|
Long-term debt due within one year: |
|||
|
— Machinery, Energy & Transportation |
120 |
45 |
|
|
— Financial Products |
6,694 |
6,307 |
|
|
Total current liabilities |
30,202 |
29,847 |
|
|
Long-term debt due after one year: |
|||
|
— Machinery, Energy & Transportation |
9,479 |
9,746 |
|
|
— Financial Products |
16,030 |
16,287 |
|
|
Liability for postemployment benefits |
5,038 |
5,592 |
|
|
Other liabilities |
4,536 |
4,805 |
|
|
Total liabilities |
65,285 |
66,277 |
|
|
Shareholders’ equity |
|||
|
Common stock |
6,523 |
6,398 |
|
|
Treasury stock |
(30,883) |
(27,643) |
|
|
Profit employed in the business |
43,304 |
39,282 |
|
|
Accumulated other comprehensive income (loss) |
(3,353) |
(1,553) |
|
|
Noncontrolling interests |
31 |
32 |
|
|
Total shareholders’ equity |
15,622 |
16,516 |
|
|
Total liabilities and shareholders’ equity |
$ 80,907 |
$ 82,793 |
|
|
Caterpillar Inc.Condensed Consolidated Statement of Cash Flow(Unaudited)(Millions of dollars) |
|||
|
Nine Months Ended |
|||
|
2022 |
2021 |
||
|
Cash flow from operating activities: |
|||
|
Profit of consolidated and affiliated companies |
$ 5,250 |
$ 4,373 |
|
|
Adjustments for non-cash items: |
|||
|
Depreciation and amortization |
1,661 |
1,766 |
|
|
Provision (benefit) for deferred income taxes |
(349) |
(321) |
|
|
Other |
132 |
102 |
|
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
|||
|
Receivables – trade and other |
365 |
(326) |
|
|
Inventories |
(3,088) |
(2,195) |
|
|
Accounts payable |
786 |
1,232 |
|
|
Accrued expenses |
70 |
46 |
|
|
Accrued wages, salaries and employee benefits |
15 |
934 |
|
|
Customer advances |
751 |
39 |
|
|
Other assets – net |
57 |
138 |
|
|
Other liabilities – net |
(623) |
(2) |
|
|
Net cash provided by (used for) operating activities |
5,027 |
5,786 |
|
|
Cash flow from investing activities: |
|||
|
Capital expenditures – excluding equipment leased to others |
(868) |
(673) |
|
|
Expenditures for equipment leased to others |
(1,023) |
(1,014) |
|
|
Proceeds from disposals of leased assets and property, plant and equipment |
666 |
877 |
|
|
Additions to finance receivables |
(9,914) |
(9,603) |
|
|
Collections of finance receivables |
9,738 |
9,221 |
|
|
Proceeds from sale of finance receivables |
50 |
44 |
|
|
Investments and acquisitions (net of cash acquired) |
(44) |
(449) |
|
|
Proceeds from sale of businesses and investments (net of cash sold) |
1 |
23 |
|
|
Proceeds from sale of securities |
2,080 |
424 |
|
|
Investments in securities |
(2,399) |
(934) |
|
|
Other – net |
15 |
(8) |
|
|
Net cash provided by (used for) investing activities |
(1,698) |
(2,092) |
|
|
Cash flow from financing activities: |
|||
|
Dividends paid |
(1,820) |
(1,733) |
|
|
Common stock issued, including treasury shares reissued |
2 |
122 |
|
|
Common shares repurchased |
(3,309) |
(1,622) |
|
|
Proceeds from debt issued (original maturities greater than three months) |
5,570 |
6,931 |
|
|
Payments on debt (original maturities greater than three months) |
(5,289) |
(8,620) |
|
|
Short-term borrowings – net (original maturities three months or less) |
(1,311) |
1,324 |
|
|
Other – net |
(1) |
(4) |
|
|
Net cash provided by (used for) financing activities |
(6,158) |
(3,602) |
|
|
Effect of exchange rate changes on cash |
(79) |
(9) |
|
|
Increase (decrease) in cash, cash equivalents and restricted cash |
(2,908) |
83 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
9,263 |
9,366 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ 6,355 |
$ 9,449 |
|
|
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less. |
|
Caterpillar Inc.Supplemental Data for Results of OperationsFor the Three Months Ended September 30, 2022(Unaudited)(Millions of dollars) |
|||||||||||||||
|
Supplemental Consolidating Data |
|||||||||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
||||||||||||
|
Sales and revenues: |
|||||||||||||||
|
Sales of Machinery, Energy & Transportation |
$ 14,278 |
$ 14,278 |
$ — |
$ — |
|||||||||||
|
Revenues of Financial Products |
716 |
— |
852 |
(136) |
1 |
||||||||||
|
Total sales and revenues |
14,994 |
14,278 |
852 |
(136) |
|||||||||||
|
Operating costs: |
|||||||||||||||
|
Cost of goods sold |
10,202 |
10,203 |
— |
(1) |
2 |
||||||||||
|
Selling, general and administrative expenses |
1,401 |
1,271 |
136 |
(6) |
2 |
||||||||||
|
Research and development expenses |
476 |
476 |
— |
— |
|||||||||||
|
Interest expense of Financial Products |
151 |
— |
151 |
— |
|||||||||||
|
Other operating (income) expenses |
339 |
43 |
315 |
(19) |
2 |
||||||||||
|
Total operating costs |
12,569 |
11,993 |
602 |
(26) |
|||||||||||
|
Operating profit |
2,425 |
2,285 |
250 |
(110) |
|||||||||||
|
Interest expense excluding Financial Products |
109 |
110 |
— |
(1) |
3 |
||||||||||
|
Other income (expense) |
242 |
160 |
(27) |
109 |
4 |
||||||||||
|
Consolidated profit before taxes |
2,558 |
2,335 |
223 |
— |
|||||||||||
|
Provision (benefit) for income taxes |
527 |
464 |
63 |
— |
|||||||||||
|
Profit of consolidated companies |
2,031 |
1,871 |
160 |
— |
|||||||||||
|
Equity in profit (loss) of unconsolidated affiliated companies |
9 |
11 |
— |
(2) |
5 |
||||||||||
|
Profit of consolidated and affiliated companies |
2,040 |
1,882 |
160 |
(2) |
|||||||||||
|
Less: Profit (loss) attributable to noncontrolling interests |
(1) |
(1) |
2 |
(2) |
6 |
||||||||||
|
Profit 7 |
$ 2,041 |
$ 1,883 |
$ 158 |
$ — |
|||||||||||
|
1 |
Elimination of Financial Products’ revenues earned from ME&T. |
|
2 |
Elimination of net expenses recorded by ME&T paid to Financial Products. |
|
3 |
Elimination of interest expense recorded between Financial Products and ME&T. |
|
4 |
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T. |
|
5 |
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries. |
|
6 |
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries. |
|
7 |
Profit attributable to common shareholders. |
|
Caterpillar Inc.Supplemental Data for Results of OperationsFor the Three Months Ended September 30, 2021(Unaudited)(Millions of dollars) |
||||||||||||||||
|
Supplemental Consolidating Data |
||||||||||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
|||||||||||||
|
Sales and revenues: |
||||||||||||||||
|
Sales of Machinery, Energy & Transportation |
$ 11,707 |
$ 11,707 |
$ — |
$ — |
||||||||||||
|
Revenues of Financial Products |
690 |
— |
787 |
(97) |
1 |
|||||||||||
|
Total sales and revenues |
12,397 |
11,707 |
787 |
(97) |
||||||||||||
|
Operating costs: |
||||||||||||||||
|
Cost of goods sold |
8,617 |
8,618 |
— |
(1) |
2 |
|||||||||||
|
Selling, general and administrative expenses |
1,340 |
1,147 |
200 |
(7) |
2 |
|||||||||||
|
Research and development expenses |
427 |
427 |
— |
— |
||||||||||||
|
Interest expense of Financial Products |
111 |
— |
111 |
— |
||||||||||||
|
Other operating (income) expenses |
238 |
(56) |
310 |
(16) |
2 |
|||||||||||
|
Total operating costs |
10,733 |
10,136 |
621 |
(24) |
||||||||||||
|
Operating profit |
1,664 |
1,571 |
166 |
(73) |
||||||||||||
|
Interest expense excluding Financial Products |
114 |
114 |
— |
— |
||||||||||||
|
Other income (expense) |
225 |
143 |
9 |
73 |
3 |
|||||||||||
|
Consolidated profit before taxes |
1,775 |
1,600 |
175 |
— |
||||||||||||
|
Provision (benefit) for income taxes |
368 |
331 |
37 |
— |
||||||||||||
|
Profit of consolidated companies |
1,407 |
1,269 |
138 |
— |
||||||||||||
|
Equity in profit (loss) of unconsolidated affiliated companies |
21 |
23 |
— |
(2) |
4 |
|||||||||||
|
Profit of consolidated and affiliated companies |
1,428 |
1,292 |
138 |
(2) |
||||||||||||
|
Less: Profit (loss) attributable to noncontrolling interests |
2 |
1 |
3 |
(2) |
5 |
|||||||||||
|
Profit 6 |
$ 1,426 |
$ 1,291 |
$ 135 |
$ — |
||||||||||||
|
1 |
Elimination of Financial Products’ revenues earned from ME&T. |
|
2 |
Elimination of net expenses recorded by ME&T paid to Financial Products. |
|
3 |
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T. |
|
4 |
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries. |
|
5 |
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries. |
|
6 |
Profit attributable to common shareholders. |
|
Caterpillar Inc.Supplemental Data for Results of OperationsFor the Nine Months Ended September 30, 2022(Unaudited)(Millions of dollars) |
||||||||||||||||
|
Supplemental Consolidating Data |
||||||||||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
|||||||||||||
|
Sales and revenues: |
||||||||||||||||
|
Sales of Machinery, Energy & Transportation |
$ 40,703 |
$ 40,703 |
$ — |
$ — |
||||||||||||
|
Revenues of Financial Products |
2,127 |
— |
2,493 |
(366) |
1 |
|||||||||||
|
Total sales and revenues |
42,830 |
40,703 |
2,493 |
(366) |
||||||||||||
|
Operating costs: |
||||||||||||||||
|
Cost of goods sold |
29,736 |
29,741 |
— |
(5) |
2 |
|||||||||||
|
Selling, general and administrative expenses |
4,172 |
3,714 |
475 |
(17) |
2 |
|||||||||||
|
Research and development expenses |
1,413 |
1,413 |
— |
— |
||||||||||||
|
Interest expense of Financial Products |
377 |
— |
377 |
— |
||||||||||||
|
Other operating (income) expenses |
908 |
31 |
936 |
(59) |
2 |
|||||||||||
|
Total operating costs |
36,606 |
34,899 |
1,788 |
(81) |
||||||||||||
|
Operating profit |
6,224 |
5,804 |
705 |
(285) |
||||||||||||
|
Interest expense excluding Financial Products |
326 |
327 |
— |
(1) |
3 |
|||||||||||
|
Other income (expense) |
755 |
497 |
(26) |
284 |
4 |
|||||||||||
|
Consolidated profit before taxes |
6,653 |
5,974 |
679 |
— |
||||||||||||
|
Provision (benefit) for income taxes |
1,423 |
1,250 |
173 |
— |
||||||||||||
|
Profit of consolidated companies |
5,230 |
4,724 |
506 |
— |
||||||||||||
|
Equity in profit (loss) of unconsolidated affiliated companies |
20 |
26 |
— |
(6) |
5 |
|||||||||||
|
Profit of consolidated and affiliated companies |
5,250 |
4,750 |
506 |
(6) |
||||||||||||
|
Less: Profit (loss) attributable to noncontrolling interests |
(1) |
(1) |
6 |
(6) |
6 |
|||||||||||
|
Profit 7 |
$ 5,251 |
$ 4,751 |
$ 500 |
$ — |
||||||||||||
|
1 |
Elimination of Financial Products’ revenues earned from ME&T. |
|
2 |
Elimination of net expenses recorded by ME&T paid to Financial Products. |
|
3 |
Elimination of interest expense recorded between Financial Products and ME&T. |
|
4 |
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T. |
|
5 |
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries. |
|
6 |
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries. |
|
7 |
Profit attributable to common shareholders. |
|
Caterpillar Inc.Supplemental Data for Results of OperationsFor the Nine Months Ended September 30, 2021(Unaudited)(Millions of dollars)
|
||||||||||||||||
|
Supplemental Consolidating Data |
||||||||||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
|||||||||||||
|
Sales and revenues: |
||||||||||||||||
|
Sales of Machinery, Energy & Transportation |
$ 35,091 |
$ 35,091 |
$ — |
$ — |
||||||||||||
|
Revenues of Financial Products |
2,082 |
— |
2,371 |
(289) |
1 |
|||||||||||
|
Total sales and revenues |
37,173 |
35,091 |
2,371 |
(289) |
||||||||||||
|
Operating costs: |
||||||||||||||||
|
Cost of goods sold |
25,510 |
25,515 |
— |
(5) |
2 |
|||||||||||
|
Selling, general and administrative expenses |
3,943 |
3,471 |
483 |
(11) |
2 |
|||||||||||
|
Research and development expenses |
1,247 |
1,247 |
— |
— |
||||||||||||
|
Interest expense of Financial Products |
352 |
— |
352 |
— |
||||||||||||
|
Other operating (income) expenses |
854 |
(30) |
931 |
(47) |
2 |
|||||||||||
|
Total operating costs |
31,906 |
30,203 |
1,766 |
(63) |
||||||||||||
|
Operating profit |
5,267 |
4,888 |
605 |
(226) |
||||||||||||
|
Interest expense excluding Financial Products |
376 |
376 |
— |
— |
||||||||||||
|
Other income (expense) |
751 |
819 |
56 |
(124) |
3 |
|||||||||||
|
Consolidated profit before taxes |
5,642 |
5,331 |
661 |
(350) |
||||||||||||
|
Provision (benefit) for income taxes |
1,313 |
1,158 |
155 |
— |
||||||||||||
|
Profit of consolidated companies |
4,329 |
4,173 |
506 |
(350) |
||||||||||||
|
Equity in profit (loss) of unconsolidated affiliated companies |
44 |
52 |
— |
(8) |
4 |
|||||||||||
|
Profit of consolidated and affiliated companies |
4,373 |
4,225 |
506 |
(358) |
||||||||||||
|
Less: Profit (loss) attributable to noncontrolling interests |
4 |
3 |
9 |
(8) |
5 |
|||||||||||
|
Profit 6 |
$ 4,369 |
$ 4,222 |
$ 497 |
$ (350) |
||||||||||||
|
1 |
Elimination of Financial Products’ revenues earned from ME&T. |
|
2 |
Elimination of net expenses recorded by ME&T paid to Financial Products. |
|
3 |
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T. |
|
4 |
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries. |
|
5 |
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries. |
|
6 |
Profit attributable to common shareholders. |
|
Caterpillar Inc.Supplemental Data for Financial PositionAt September 30, 2022(Unaudited)(Millions of dollars) |
||||||||||||||||
|
Supplemental Consolidating Data |
||||||||||||||||
|
Consolidated |
Machinery, Energy & Transportation |
Financial Products |
Consolidating Adjustments |
|||||||||||||
|
Assets |
||||||||||||||||
|
Current assets: |
||||||||||||||||
|
Cash and cash equivalents |
$ 6,346 |
$ 5,403 |
$ 943 |
$ — |
||||||||||||
|
Receivables – trade and other |
8,158 |
3,134 |
652 |
4,372 |
1,2 |
|||||||||||
|
Receivables – finance |
8,918 |
— |
13,446 |
(4,528) |
2 |
|||||||||||
|
Prepaid expenses and other current assets |
2,295 |
2,013 |
316 |
(34) |
3 |
|||||||||||
|
Inventories |
16,860 |
16,860 |
— |
— |
||||||||||||
|
Total current assets |
42,577 |
27,410 |
15,357 |
(190) |
||||||||||||
|
Property, plant and equipment – net |
11,643 |
7,810 |
3,833 |
— |
||||||||||||
|
Long-term receivables – trade and other |
1,278 |
319 |
512 |
447 |
1,2 |
|||||||||||
|
Long-term receivables – finance |
11,859 |
— |
12,338 |
(479) |
2 |
|||||||||||
|
Noncurrent deferred and refundable income taxes |
2,218 |
2,745 |
106 |
(633) |
4 |
|||||||||||
|
Intangible assets |
806 |
806 |
— |
— |
||||||||||||
|
Goodwill |
6,092 |
6,092 |
— |
— |
||||||||||||
|
Other assets |
4,434 |
3,663 |
1,946 |
(1,175) |
5 |
|||||||||||
|
Total assets |
$ 80,907 |
$ 48,845 |
$ 34,092 |
$ (2,030) |
||||||||||||
|
Liabilities |
||||||||||||||||
|
Current liabilities: |
||||||||||||||||
|
Short-term borrowings |
$ 4,202 |
$ 3 |
$ 4,199 |
$ — |
||||||||||||
|
Accounts payable |
8,260 |
8,149 |
267 |
(156) |
6 |
|||||||||||
|
Accrued expenses |
4,013 |
3,622 |
391 |
— |
||||||||||||
|
Accrued wages, salaries and employee benefits |
2,204 |
2,160 |
44 |
— |
||||||||||||
|
Customer advances |
1,831 |
1,831 |
— |
— |
||||||||||||
|
Other current liabilities |
2,878 |
2,126 |
807 |
(55) |
4,7 |
|||||||||||
|
Long-term debt due within one year |
6,814 |
120 |
6,694 |
— |
||||||||||||
|
Total current liabilities |
30,202 |
18,011 |
12,402 |
(211) |
||||||||||||
|
Long-term debt due after one year |
25,509 |
9,511 |
16,030 |
(32) |
8 |
|||||||||||
|
Liability for postemployment benefits |
5,038 |
5,038 |
— |
— |
||||||||||||
|
Other liabilities |
4,536 |
3,659 |
1,565 |
(688) |
4 |
|||||||||||
|
Total liabilities |
65,285 |
36,219 |
29,997 |
(931) |
||||||||||||
|
Shareholders’ equity |
||||||||||||||||
|
Common stock |
6,523 |
6,523 |
905 |
(905) |
9 |
|||||||||||
|
Treasury stock |
(30,883) |
(30,883) |
— |
— |
||||||||||||
|
Profit employed in the business |
43,304 |
38,898 |
4,395 |
11 |
9 |
|||||||||||
|
Accumulated other comprehensive income (loss) |
(3,353) |
(1,946) |
(1,407) |
— |
||||||||||||
|
Noncontrolling interests |
31 |
34 |
202 |
(205) |
9 |
|||||||||||
|
Total shareholders’ equity |
15,622 |
12,626 |
4,095 |
(1,099) |
||||||||||||
|
Total liabilities and shareholders’ equity |
$ 80,907 |
$ 48,845 |
$ 34,092 |
$ (2,030) |
||||||||||||
|
1 |
Elimination of receivables between ME&T and Financial Products. |
|
2 |
Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables. |
|
3 |
Elimination of ME&T’s insurance premiums that are prepaid to Financial Products. |
|
4 |
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction. |
|
5 |
Elimination of other intercompany assets between ME&T and Financial Products. |
|
6 |
Elimination of payables between ME&T and Financial Products. |
|
7 |
Elimination of prepaid insurance in Financial Products’ other liabilities. |
|
8 |
Elimination of debt between ME&T and Financial Products. |
|
9 |
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries. |
|
Caterpillar Inc.Supplemental Data for Financial PositionAt December 31, 2021(Unaudited)(Millions of dollars) |
||||||||||||||||
|
Supplemental Consolidating Data |
||||||||||||||||
|
Consolidated |
Machinery, Energy & Transportation |
Financial Products |
Consolidating Adjustments |
|||||||||||||
|
Assets |
||||||||||||||||
|
Current assets: |
||||||||||||||||
|
Cash and cash equivalents |
$ 9,254 |
$ 8,428 |
$ 826 |
$ — |
||||||||||||
|
Receivables – trade and other |
8,477 |
3,279 |
435 |
4,763 |
1,2 |
|||||||||||
|
Receivables – finance |
8,898 |
— |
13,828 |
(4,930) |
2 |
|||||||||||
|
Prepaid expenses and other current assets |
2,788 |
2,567 |
358 |
(137) |
3 |
|||||||||||
|
Inventories |
14,038 |
14,038 |
— |
— |
||||||||||||
|
Total current assets |
43,455 |
28,312 |
15,447 |
(304) |
||||||||||||
|
Property, plant and equipment – net |
12,090 |
8,172 |
3,918 |
— |
||||||||||||
|
Long-term receivables – trade and other |
1,204 |
375 |
204 |
625 |
1,2 |
|||||||||||
|
Long-term receivables – finance |
12,707 |
— |
13,358 |
(651) |
2 |
|||||||||||
|
Noncurrent deferred and refundable income taxes |
1,840 |
2,396 |
105 |
(661) |
4 |
|||||||||||
|
Intangible assets |
1,042 |
1,042 |
— |
— |
||||||||||||
|
Goodwill |
6,324 |
6,324 |
— |
— |
||||||||||||
|
Other assets |
4,131 |
3,388 |
1,952 |
(1,209) |
5 |
|||||||||||
|
Total assets |
$ 82,793 |
$ 50,009 |
$ 34,984 |
$ (2,200) |
||||||||||||
|
Liabilities |
||||||||||||||||
|
Current liabilities: |
||||||||||||||||
|
Short-term borrowings |
$ 5,404 |
$ 9 |
$ 5,395 |
$ — |
||||||||||||
|
Accounts payable |
8,154 |
8,079 |
242 |
(167) |
6 |
|||||||||||
|
Accrued expenses |
3,757 |
3,385 |
372 |
— |
||||||||||||
|
Accrued wages, salaries and employee benefits |
2,242 |
2,186 |
56 |
— |
||||||||||||
|
Customer advances |
1,087 |
1,086 |
1 |
— |
||||||||||||
|
Dividends payable |
595 |
595 |
— |
— |
||||||||||||
|
Other current liabilities |
2,256 |
1,773 |
642 |
(159) |
4,7 |
|||||||||||
|
Long-term debt due within one year |
6,352 |
45 |
6,307 |
— |
||||||||||||
|
Total current liabilities |
29,847 |
17,158 |
13,015 |
(326) |
||||||||||||
|
Long-term debt due after one year |
26,033 |
9,772 |
16,287 |
(26) |
8 |
|||||||||||
|
Liability for postemployment benefits |
5,592 |
5,592 |
— |
— |
||||||||||||
|
Other liabilities |
4,805 |
4,106 |
1,425 |
(726) |
4 |
|||||||||||
|
Total liabilities |
66,277 |
36,628 |
30,727 |
(1,078) |
||||||||||||
|
Shareholders’ equity |
||||||||||||||||
|
Common stock |
6,398 |
6,398 |
919 |
(919) |
9 |
|||||||||||
|
Treasury stock |
(27,643) |
(27,643) |
— |
— |
||||||||||||
|
Profit employed in the business |
39,282 |
35,390 |
3,881 |
11 |
9 |
|||||||||||
|
Accumulated other comprehensive income (loss) |
(1,553) |
(799) |
(754) |
— |
||||||||||||
|
Noncontrolling interests |
32 |
35 |
211 |
(214) |
9 |
|||||||||||
|
Total shareholders’ equity |
16,516 |
13,381 |
4,257 |
(1,122) |
||||||||||||
|
Total liabilities and shareholders’ equity |
$ 82,793 |
$ 50,009 |
$ 34,984 |
$ (2,200) |
||||||||||||
|
1 |
Elimination of receivables between ME&T and Financial Products. |
|
2 |
Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables. |
|
3 |
Elimination of ME&T’s insurance premiums that are prepaid to Financial Products. |
|
4 |
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction. |
|
5 |
Elimination of other intercompany assets between ME&T and Financial Products. |
|
6 |
Elimination of payables between ME&T and Financial Products. |
|
7 |
Elimination of prepaid insurance in Financial Products’ other liabilities. |
|
8 |
Elimination of debt between ME&T and Financial Products. |
|
9 |
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries. |
|
Caterpillar Inc.Supplemental Data for Cash FlowFor the Nine Months Ended September 30, 2022(Unaudited)(Millions of dollars) |
||||||||||||||||
|
Supplemental Consolidating Data |
||||||||||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
|||||||||||||
|
Cash flow from operating activities: |
||||||||||||||||
|
Profit of consolidated and affiliated companies |
$ 5,250 |
$ 4,750 |
$ 506 |
$ (6) |
1 |
|||||||||||
|
Adjustments for non-cash items: |
||||||||||||||||
|
Depreciation and amortization |
1,661 |
1,072 |
589 |
— |
||||||||||||
|
Provision (benefit) for deferred income taxes |
(349) |
(294) |
(55) |
— |
||||||||||||
|
Other |
132 |
(83) |
(123) |
338 |
2 |
|||||||||||
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
||||||||||||||||
|
Receivables – trade and other |
365 |
97 |
21 |
247 |
2,3 |
|||||||||||
|
Inventories |
(3,088) |
(3,074) |
— |
(14) |
2 |
|||||||||||
|
Accounts payable |
786 |
701 |
74 |
11 |
2 |
|||||||||||
|
Accrued expenses |
70 |
28 |
42 |
— |
||||||||||||
|
Accrued wages, salaries and employee benefits |
15 |
27 |
(12) |
— |
||||||||||||
|
Customer advances |
751 |
752 |
(1) |
— |
||||||||||||
|
Other assets – net |
57 |
128 |
(28) |
(43) |
2 |
|||||||||||
|
Other liabilities – net |
(623) |
(913) |
239 |
51 |
2 |
|||||||||||
|
Net cash provided by (used for) operating activities |
5,027 |
3,191 |
1,252 |
584 |
||||||||||||
|
Cash flow from investing activities: |
||||||||||||||||
|
Capital expenditures – excluding equipment leased to others |
(868) |
(860) |
(10) |
2 |
2 |
|||||||||||
|
Expenditures for equipment leased to others |
(1,023) |
(20) |
(1,024) |
21 |
2 |
|||||||||||
|
Proceeds from disposals of leased assets and property, plant and equipment |
666 |
63 |
612 |
(9) |
2 |
|||||||||||
|
Additions to finance receivables |
(9,914) |
— |
(10,584) |
670 |
3 |
|||||||||||
|
Collections of finance receivables |
9,738 |
— |
10,328 |
(590) |
3 |
|||||||||||
|
Net intercompany purchased receivables |
— |
— |
678 |
(678) |
3 |
|||||||||||
|
Proceeds from sale of finance receivables |
50 |
— |
50 |
— |
||||||||||||
|
Net intercompany borrowings |
— |
— |
5 |
(5) |
4 |
|||||||||||
|
Investments and acquisitions (net of cash acquired) |
(44) |
(44) |
— |
— |
||||||||||||
|
Proceeds from sale of businesses and investments (net of cash sold) |
1 |
1 |
— |
— |
||||||||||||
|
Proceeds from sale of securities |
2,080 |
1,820 |
260 |
— |
||||||||||||
|
Investments in securities |
(2,399) |
(1,925) |
(474) |
— |
||||||||||||
|
Other – net |
15 |
84 |
(69) |
— |
||||||||||||
|
Net cash provided by (used for) investing activities |
(1,698) |
(881) |
(228) |
(589) |
||||||||||||
|
Cash flow from financing activities: |
||||||||||||||||
|
Dividends paid |
(1,820) |
(1,820) |
— |
— |
||||||||||||
|
Common stock issued, including treasury shares reissued |
2 |
2 |
— |
— |
||||||||||||
|
Common shares repurchased |
(3,309) |
(3,309) |
— |
— |
||||||||||||
|
Net intercompany borrowings |
— |
(5) |
— |
5 |
4 |
|||||||||||
|
Proceeds from debt issued > 90 days |
5,570 |
— |
5,570 |
— |
||||||||||||
|
Payments on debt > 90 days |
(5,289) |
(20) |
(5,269) |
— |
||||||||||||
|
Short-term borrowings – net < 90 days |
(1,311) |
(138) |
(1,173) |
— |
||||||||||||
|
Other – net |
(1) |
(1) |
— |
— |
||||||||||||
|
Net cash provided by (used for) financing activities |
(6,158) |
(5,291) |
(872) |
5 |
||||||||||||
|
Effect of exchange rate changes on cash |
(79) |
(42) |
(37) |
— |
||||||||||||
|
Increase (decrease) in cash, cash equivalents and restricted cash |
(2,908) |
(3,023) |
115 |
— |
||||||||||||
|
Cash, cash equivalents and restricted cash at beginning of period |
9,263 |
8,433 |
830 |
— |
||||||||||||
|
Cash, cash equivalents and restricted cash at end of period |
$ 6,355 |
$ 5,410 |
$ 945 |
$ — |
||||||||||||
|
1 |
Elimination of equity profit earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries. |
|
2 |
Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. |
|
3 |
Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory. |
|
4 |
Elimination of net proceeds and payments to/from ME&T and Financial Products. |
|
Caterpillar Inc.Supplemental Data for Cash FlowFor the Nine Months Ended September 30, 2021(Unaudited)(Millions of dollars) |
||||||||||||||||
|
Supplemental Consolidating Data |
||||||||||||||||
|
Consolidated |
Machinery, |
Financial Products |
Consolidating Adjustments |
|||||||||||||
|
Cash flow from operating activities: |
||||||||||||||||
|
Profit of consolidated and affiliated companies |
$ 4,373 |
$ 4,225 |
$ 506 |
$ (358) |
1,5 |
|||||||||||
|
Adjustments for non-cash items: |
||||||||||||||||
|
Depreciation and amortization |
1,766 |
1,162 |
604 |
— |
||||||||||||
|
Provision (benefit) for deferred income taxes |
(321) |
(255) |
(66) |
— |
||||||||||||
|
Other |
102 |
104 |
(135) |
133 |
2 |
|||||||||||
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
||||||||||||||||
|
Receivables – trade and other |
(326) |
(338) |
40 |
(28) |
2,3 |
|||||||||||
|
Inventories |
(2,195) |
(2,194) |
— |
(1) |
2 |
|||||||||||
|
Accounts payable |
1,232 |
1,194 |
28 |
10 |
2 |
|||||||||||
|
Accrued expenses |
46 |
117 |
(71) |
— |
||||||||||||
|
Accrued wages, salaries and employee benefits |
934 |
905 |
29 |
— |
||||||||||||
|
Customer advances |
39 |
39 |
— |
— |
||||||||||||
|
Other assets – net |
138 |
133 |
24 |
(19) |
2 |
|||||||||||
|
Other liabilities – net |
(2) |
(193) |
144 |
47 |
2 |
|||||||||||
|
Net cash provided by (used for) operating activities |
5,786 |
4,899 |
1,103 |
(216) |
||||||||||||
|
Cash flow from investing activities: |
||||||||||||||||
|
Capital expenditures – excluding equipment leased to others |
(673) |
(670) |
(11) |
8 |
2 |
|||||||||||
|
Expenditures for equipment leased to others |
(1,014) |
(23) |
(997) |
6 |
2 |
|||||||||||
|
Proceeds from disposals of leased assets and property, plant and equipment |
877 |
71 |
818 |
(12) |
2 |
|||||||||||
|
Additions to finance receivables |
(9,603) |
— |
(10,292) |
689 |
3 |
|||||||||||
|
Collections of finance receivables |
9,221 |
— |
9,946 |
(725) |
3 |
|||||||||||
|
Net intercompany purchased receivables |
— |
— |
100 |
(100) |
3 |
|||||||||||
|
Proceeds from sale of finance receivables |
44 |
— |
44 |
— |
||||||||||||
|
Net intercompany borrowings |
— |
1,000 |
3 |
(1,003) |
4 |
|||||||||||
|
Investments and acquisitions (net of cash acquired) |
(449) |
(449) |
— |
— |
||||||||||||
|
Proceeds from sale of businesses and investments (net of cash sold) |
23 |
23 |
— |
— |
||||||||||||
|
Proceeds from sale of securities |
424 |
44 |
380 |
— |
||||||||||||
|
Investments in securities |
(934) |
(542) |
(392) |
— |
||||||||||||
|
Other – net |
(8) |
59 |
(67) |
— |
||||||||||||
|
Net cash provided by (used for) investing activities |
(2,092) |
(487) |
(468) |
(1,137) |
||||||||||||
|
Cash flow from financing activities: |
||||||||||||||||
|
Dividends paid |
(1,733) |
(1,733) |
(350) |
350 |
5 |
|||||||||||
|
Common stock issued, including treasury shares reissued |
122 |
122 |
— |
— |
||||||||||||
|
Common shares repurchased |
(1,622) |
(1,622) |
— |
— |
||||||||||||
|
Net intercompany borrowings |
— |
(3) |
(1,000) |
1,003 |
4 |
|||||||||||
|
Proceeds from debt issued > 90 days |
6,931 |
494 |
6,437 |
— |
||||||||||||
|
Payments on debt > 90 days |
(8,620) |
(1,910) |
(6,710) |
— |
||||||||||||
|
Short-term borrowings – net < 90 days |
1,324 |
(10) |
1,334 |
— |
||||||||||||
|
Other – net |
(4) |
(4) |
— |
— |
||||||||||||
|
Net cash provided by (used for) financing activities |
(3,602) |
(4,666) |
(289) |
1,353 |
||||||||||||
|
Effect of exchange rate changes on cash |
(9) |
(14) |
5 |
— |
||||||||||||
|
Increase (decrease) in cash, cash equivalents and restricted cash |
83 |
(268) |
351 |
— |
||||||||||||
|
Cash, cash equivalents and restricted cash at beginning of period |
9,366 |
8,822 |
544 |
— |
||||||||||||
|
Cash, cash equivalents and restricted cash at end of period |
$ 9,449 |
$ 8,554 |
$ 895 |
$ — |
||||||||||||
|
1 |
Elimination of equity profit earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries. |
|
2 |
Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. |
|
3 |
Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory. |
|
4 |
Elimination of net proceeds and payments to/from ME&T and Financial Products. |
|
5 |
Elimination of dividend activity between Financial Products and ME&T. |
SOURCE Caterpillar Inc.
