Caterpillar Reports Third-Quarter 2024 Results
Third-quarter 2024 profit per share of $5.06; adjusted profit per share of $5.17
Enterprise operating cash flow was $3.6 billion in the third quarter of 2024
Deployed $1.5 billion of cash for share repurchases and dividends in the third quarter
Third Quarter
($ in billions except profit per share)
2024
2023
Sales and Revenues
$16.1
$16.8
Profit Per Share
$5.06
$5.45
Adjusted Profit Per Share
$5.17
$5.52
Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.
IRVING, Texas, Oct. 30, 2024 /PRNewswire/ -- Caterpillar Inc. (NYSE:CAT) announced third-quarter 2024 results. Sales and revenues for the third quarter of 2024 were $16.1 billion, a 4% decrease compared with $16.8 billion in the third quarter of 2023. The decrease was primarily due to lower sales volume.
Operating profit margin was 19.5% for the third quarter of 2024, compared with 20.5% for the third quarter of 2023. Adjusted operating profit margin was 20.0% for the third quarter of 2024, compared with 20.8% for the third quarter of 2023. Third-quarter 2024 profit per share was $5.06, compared with third-quarter 2023 profit per share of $5.45. Adjusted profit per share in the third quarter of 2024 was $5.17, compared with third-quarter 2023 adjusted profit per share of $5.52. For the third quarter of 2024 and 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring costs.
For the third quarter of 2024, enterprise operating cash flow was $3.6 billion, and the company ended the third quarter with $5.6 billion of enterprise cash. In the quarter, the company deployed $0.8 billion of cash for repurchases of Caterpillar common stock and $0.7 billion of cash for dividends.
"I'd like to thank our global team for delivering strong adjusted operating profit margin and adjusted profit per share while generating robust ME&T free cash flow," said Chairman and CEO Jim Umpleby. "Our third-quarter results reflect the benefit of the diversity of our end markets."
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues ComparisonThird Quarter 2024 vs. Third Quarter 2023
To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar third-quarter 2024 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the third quarter of 2023 (at left) and the third quarter of 2024 (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 2024 were $16.106 billion, a decrease of $704 million, or 4%, compared with $16.810 billion in the third quarter of 2023. The decrease was primarily due to lower sales volume of $759 million. The decrease in sales volume was mainly driven by lower sales of equipment to end users. In addition, changes in dealer inventories had an unfavorable impact to sales volume. Dealer inventory increased less during the third quarter of 2024 than during the third quarter of 2023.
In the three primary segments, sales were lower in Construction Industries and Resource Industries and higher in Energy & Transportation.
Sales and Revenues by Segment
(Millions of dollars)
ThirdQuarter2023
Sales
Volume
Price
Realization
Currency
Inter-Segment /Other
ThirdQuarter2024
$
Change
%
Change
Construction Industries
$ 6,999
$ (458)
$ (147)
$ (64)
$ 15
$ 6,345
$ (654)
(9 %)
Resource Industries
3,351
(352)
38
(11)
2
3,028
(323)
(10 %)
Energy & Transportation
6,859
57
213
(20)
78
7,187
328
5 %
All Other Segment
106
(2)
1
—
(13)
92
(14)
(13 %)
Corporate Items and Eliminations
(1,327)
(4)
(1)
(7)
(82)
(1,421)
(94)
Machinery, Energy & Transportation
15,988
(759)
104
(102)
—
15,231
(757)
(5 %)
Financial Products Segment
979
—
—
—
55
1,034
55
6 %
Corporate Items and Eliminations
(157)
—
—
—
(2)
(159)
(2)
Financial Products Revenues
822
—
—
—
53
875
53
6 %
Consolidated Sales and Revenues
$ 16,810
$ (759)
$ 104
$ (102)
$ 53
$ 16,106
$ (704)
(4 %)
Sales and Revenues by Geographic Region
North America
Latin America
EAME
Asia/Pacific
External Salesand Revenues
Inter-Segment
Total Salesand Revenues
(Millions of dollars)
$
% Chg
$
% Chg
$
% Chg
$
% Chg
$
% Chg
$
% Chg
$
% Chg
Third Quarter 2024
Construction Industries
$ 3,629
(11 %)
$ 658
19 %
$ 1,150
(15 %)
$ 875
(12 %)
$ 6,312
(10 %)
$ 33
83 %
$ 6,345
(9 %)
Resource Industries
1,131
(17 %)
498
— %
442
(13 %)
863
(3 %)
2,934
(10 %)
94
2 %
3,028
(10 %)
Energy & Transportation
3,214
8 %
449
(2 %)
1,486
4 %
856
(5 %)
6,005
4 %
1,182
7 %
7,187
5 %
All Other Segment
12
(25 %)
—
100 %
3
(40 %)
14
40 %
29
(3 %)
63
(17 %)
92
(13 %)
Corporate Items and Eliminations
(43)
(3)
9
(12)
(49)
(1,372)
(1,421)
Machinery, Energy & Transportation
7,943
(5 %)
1,602
6 %
3,090
(6 %)
2,596
(7 %)
15,231
(5 %)
—
— %
15,231
(5 %)
Financial Products Segment
695
11 %
97
(12 %)
130
(2 %)
112
2 %
1,034
6 %
—
— %
1,034
6 %
Corporate Items and Eliminations
(93)
(21)
(21)
(24)
(159)
—
(159)
Financial Products Revenues
602
12 %
76
(15 %)
109
(1 %)
88
1 %
875
6 %
—
— %
875
6 %
Consolidated Sales and Revenues
$ 8,545
(4 %)
$ 1,678
5 %
$ 3,199
(6 %)
$ 2,684
(7 %)
$ 16,106
(4 %)
$ ,
— %
$ 16,106
(4 %)
Third Quarter 2023
Construction Industries
$ 4,078
$ 555
$ 1,351
$ 997
$ 6,981
$ 18
$ 6,999
Resource Industries
1,366
499
508
886
3,259
92
3,351
Energy & Transportation
2,966
460
1,428
901
5,755
1,104
6,859
All Other Segment
16
(1)
5
10
30
76
106
Corporate Items and Eliminations
(35)
1
—
(3)
(37)
(1,290)
(1,327)
Machinery, Energy & Transportation
8,391
1,514
3,292
2,791
15,988
—
15,988
Financial Products Segment
627
110
132
110
979
—
979
Corporate Items and Eliminations
(91)
(21)
(22)
(23)
(157)
—
(157)
Financial Products Revenues
536
89
110
87
822
—
822
Consolidated Sales and Revenues
$ 8,927
$ 1,603
$ 3,402
$ 2,878
$ 16,810
$ ,
$ 16,810
Consolidated Operating Profit
Consolidated Operating Profit ComparisonThird Quarter 2024 vs. Third Quarter 2023
To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar third-quarter 2024 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the third quarter of 2023 (at left) and the third quarter of 2024 (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 2024 was $3.147 billion, a decrease of $302 million, or 9%, compared with $3.449 billion in the third quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $372 million, partially offset by favorable price realization of $104 million.
Profit (Loss) by Segment
(Millions of dollars)
Third Quarter2024
Third Quarter2023
$
Change
%
Change
Construction Industries
$ 1,486
$ 1,847
$ (361)
(20 %)
Resource Industries
619
730
(111)
(15 %)
Energy & Transportation
1,433
1,181
252
21 %
All Other Segment
(13)
21
(34)
(162 %)
Corporate Items and Eliminations
(427)
(386)
(41)
Machinery, Energy & Transportation
3,098
3,393
(295)
(9 %)
Financial Products Segment
246
203
43
21 %
Corporate Items and Eliminations
(30)
18
(48)
Financial Products
216
221
(5)
(2 %)
Consolidating Adjustments
(167)
(165)
(2)
Consolidated Operating Profit
$ 3,147
$ 3,449
$ (302)
(9 %)
Other Profit/Loss and Tax Items
Other income (expense) in the third quarter of 2024 was income of $76 million, compared with income of $195 million in the third quarter of 2023. The change was primarily driven by unfavorable foreign currency impacts.
The effective tax rate for the third quarter of 2024 was 20.7% compared to 20.9% for the third quarter of 2023. Excluding the discrete items discussed below, the estimated annual tax rate was 22.5% for the third quarters of 2024 and 2023.In the third quarter of 2024, the company recorded discrete tax benefits of $47 million to reflect changes in estimates related to prior years. In addition, a discrete tax benefit of $7 million was recorded in the third quarter of 2024, compared with a $22 million benefit in the third quarter of 2023, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company also recorded a $34 million benefit in the third quarter of 2023 due to a decrease from the second-quarter estimated annual tax rate. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.
CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
ThirdQuarter 2023
SalesVolume
PriceRealization
Currency
Inter-Segment
ThirdQuarter 2024
$
Change
%
Change
Total Sales
$ 6,999
$ (458)
$ (147)
$ (64)
$ 15
$ 6,345
$ (654)
(9 %)
Sales by Geographic Region
ThirdQuarter 2024
ThirdQuarter 2023
$
Change
%
Change
North America
$ 3,629
$ 4,078
$ (449)
(11 %)
Latin America
658
555
103
19 %
EAME
1,150
1,351
(201)
(15 %)
Asia/Pacific
875
997
(122)
(12 %)
External Sales
6,312
6,981
(669)
(10 %)
Inter-segment
33
18
15
83 %
Total Sales
$ 6,345
$ 6,999
$ (654)
(9 %)
Segment Profit
ThirdQuarter 2024
ThirdQuarter 2023
Change
%
Change
Segment Profit
$ 1,486
$ 1,847
$ (361)
(20 %)
Segment Profit Margin
23.4 %
26.4 %
(3.0 pts)
Construction Industries' total sales were $6.345 billion in the third quarter of 2024, a decrease of $654 million, or 9%, compared with $6.999 billion in the third quarter of 2023. The decrease was primarily due to lower sales volume of $458 million and unfavorable price realization of $147 million. The decrease in sales volume was mainly driven by lower sales of equipment to end users.
In North America, sales decreased primarily due to lower sales volume. Lower sales volume was mainly driven by lower sales of equipment to end users and the impact from changes in dealer inventories. Dealer inventory increased less during the third quarter of 2024 than during the third quarter of 2023.
Sales increased in Latin America mainly due to higher sales volume, partially offset by unfavorable currency impacts, primarily related to the Brazilian real, and unfavorable price realization. Higher sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory increased during the third quarter of 2024, compared with a decrease during the third quarter of 2023.
In EAME, sales decreased primarily due to lower sales volume. Lower sales volume was mainly driven by lower sales of equipment to end users.
Sales decreased in Asia/Pacific mainly due to lower sales volume and unfavorable currency impacts primarily related to the Japanese yen. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the third quarter of 2024, compared with an increase during the third quarter of 2023.
Construction Industries' segment profit was $1.486 billion in the third quarter of 2024, a decrease of $361 million, or 20%, compared with $1.847 billion in the third quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $276 million and unfavorable price realization of $147 million.
RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
ThirdQuarter 2023
SalesVolume
PriceRealization
Currency
Inter-Segment
ThirdQuarter 2024
$
Change
%
Change
Total Sales
$ 3,351
$ (352)
$ 38
$ (11)
$ 2
$ 3,028
$ (323)
(10 %)
Sales by Geographic Region
ThirdQuarter 2024
ThirdQuarter 2023
$
Change
%
Change
North America
$ 1,131
$ 1,366
$ (235)
(17 %)
Latin America
498
499
(1)
— %
EAME
442
508
(66)
(13 %)
Asia/Pacific
863
886
(23)
(3 %)
External Sales
2,934
3,259
(325)
(10 %)
Inter-segment
94
92
2
2 %
Total Sales
$ 3,028
$ 3,351
$ (323)
(10 %)
Segment Profit
ThirdQuarter 2024
ThirdQuarter 2023
Change
%
Change
Segment Profit
$ 619
$ 730
$ (111)
(15 %)
Segment Profit Margin
20.4 %
21.8 %
(1.4 pts)
Resource Industries' total sales were $3.028 billion in the third quarter of 2024, a decrease of $323 million, or 10%, compared with $3.351 billion in the third quarter of 2023. The decrease was primarily due to lower sales volume. The decrease in sales volume was mainly driven by lower sales of equipment to end users.
Resource Industries' segment profit was $619 million in the third quarter of 2024, a decrease of $111 million, or 15%, compared with $730 million in the third quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume.
ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
ThirdQuarter 2023
SalesVolume
PriceRealization
Currency
Inter-Segment
ThirdQuarter 2024
$
Change
%
Change
Total Sales
$ 6,859
$ 57
$ 213
$ (20)
$ 78
$ 7,187
$ 328
5 %
Sales by Application
ThirdQuarter 2024
ThirdQuarter 2023
$
Change
%
Change
