Caterpillar Inc.: Files Form 8-K Earnings Release and Retail Statistics - Exhibit 99.1 & 99.2 FQE 30 June 2021

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Caterpillar Inc.
Caterpillar Inc.: Files Form 8-K Earnings Release and Retail Statistics - Exhibit 99.1 & 99.2 FQE 30 June 2021

30-Jul-2021 / 15:02 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

Exhibit 99.1

Caterpillar Inc.          

2Q 2021 Earnings Release

 

July 30, 2021

 

FOR IMMEDIATE RELEASE

 

 

 

 

 

Caterpillar Reports Second-Quarter 2021 Results

 

 

Second Quarter

($ in billions except profit per share)

 

2021

2020

Sales and Revenues

 

$12.9

$10.0

Profit Per Share

 

$2.56

$0.84

Adjusted Profit Per Share

 

$2.60

$1.27

 

Second-quarter 2021 sales and revenues increased 29% to $12.9 billion

Second-quarter 2021 profit per share of $2.56; adjusted profit per share of $2.60

Strong balance sheet; returned $0.8 billion to shareholders through dividends and share repurchases

DEERFIELD, Ill. - Caterpillar Inc. (NYSE: CAT) today announced second-quarter 2021 sales and revenues of $12.9 billion, a 29% increase compared with $10.0 billion in the second quarter of 2020. The increase was primarily due to higher sales volume driven by higher end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased their inventories more during the second quarter of 2020 than during the second quarter of 2021.

Operating profit margin was 13.9% for the second quarter of 2021, compared with 7.8% for the second quarter of 2020. Second-quarter 2021 profit per share was $2.56, compared with $0.84 profit per share in the second quarter of 2020. Adjusted profit per share in the second quarter of 2021 was $2.60, compared with second-quarter 2020 adjusted profit per share of $1.27. Adjusted profit per share for both quarters excluded restructuring costs, while the second quarter of 2020 also excluded remeasurement losses of $0.19 per share, resulting from the settlements of pension obligations. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.

For the first half of 2021, enterprise operating cash flow was $4.0 billion. In total, the company returned $0.8 billion to shareholders in the quarter, after increasing the dividend and reinstating share repurchases. The company ended the period with $10.8 billion of enterprise cash.

"Our dedicated global team remains focused on serving our customers, executing our strategy and investing for future profitable growth," said Caterpillar Chairman and CEO Jim Umpleby. "We're encouraged by higher sales and revenues across all regions and in our three primary segments, which reflect continued improvement in our end markets."

 

 

 

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

 

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2020 (at left) and the second quarter of 2021 (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 second quarter of 2021 were $12.889 billion, an increase of $2.892 billion, or 29%, compared with $9.997 billion in the second quarter of 2020. The increase was primarily due to higher sales volume driven by higher end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased inventories by $1.4 billion during the second quarter of 2020, compared with a decrease of $400 million during the second quarter of 2021. Favorable currency impacts were related to the Australian dollar, euro and Chinese yuan. Favorable price realization also contributed to the sales improvement.

Sales were higher across all regions and in the three primary segments.

Sales and Revenues by Segment

(Millions of dollars)

Second Quarter 2020

 

Sales

Volume

 

Price

Realization

 

Currency

 

Inter-Segment / Other

 

Second Quarter 2021

 

$

Change

 

%

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction Industries

$

4,048 

 

 

$

1,171 

 

 

$

238 

 

 

$

162 

 

 

$

37 

 

 

$

5,656 

 

 

$

1,608 

 

 

40%

Resource Industries

1,826 

 

 

712 

 

 

(17)

 

 

66 

 

 

(8)

 

 

2,579 

 

 

753 

 

 

41%

Energy & Transportation

4,149 

 

 

456 

 

 

12 

 

 

111 

 

 

247 

 

 

4,975 

 

 

826 

 

 

20%

All Other Segment

115 

 

 

4 

 

 

- 

 

 

2 

 

 

7 

 

 

128 

 

 

13 

 

 

11%

Corporate Items and Eliminations

(828)

 

 

(34)

 

 

- 

 

 

- 

 

 

(283)

 

 

(1,145)

 

 

(317)

 

 

 

Machinery, Energy & Transportation

9,310 

 

 

2,309 

 

 

233 

 

 

341 

 

 

- 

 

 

12,193 

 

 

2,883 

 

 

31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Products Segment

763 

 

 

- 

 

 

- 

 

 

- 

 

 

11 

 

 

774 

 

 

11 

 

 

1%

Corporate Items and Eliminations

(76)

 

 

- 

 

 

- 

 

 

- 

 

 

(2)

 

 

(78)

 

 

(2)

 

 

 

Financial Products Revenues

687 

 

 

- 

 

 

- 

 

 

- 

 

 

9 

 

 

696 

 

 

9 

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Sales and Revenues

$

9,997 

 

 

$

2,309 

 

 

$

233 

 

 

$

341 

 

 

$

9 

 

 

$

12,889 

 

 

$

2,892 

 

 

29%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and Revenues by Geographic Region

 

North America

 

Latin America

 

EAME

 

Asia/Pacific

 

External Sales and Revenues

 

Inter-Segment

 

Total Sales and Revenues

(Millions of dollars)

$

 

% Chg

 

$

 

% Chg

 

$

 

% Chg

 

$

 

% Chg

 

$

 

% Chg

 

$

 

% Chg

 

$

 

% Chg

Second Quarter 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction Industries

$

2,498 

 

 

56%

 

$

430 

 

 

103%

 

$

1,291 

 

 

38%

 

$

1,384 

 

 

8%

 

$

5,603 

 

 

39%

 

$

53 

 

 

231%

 

$

5,656 

 

 

40%

Resource Industries

799 

 

 

58%

 

487 

 

 

80%

 

525 

 

 

39%

 

660 

 

 

19%

 

2,471 

 

 

45%

 

108 

 

 

(7%)

 

2,579 

 

 

41%

Energy & Transportation

1,992 

 

 

10%

 

250 

 

 

27%

 

1,196 

 

 

29%

 

682 

 

 

14%

 

4,120 

 

 

16%

 

855 

 

 

41%

 

4,975 

 

 

20%

All Other Segment

11 

 

 

57%

 

1 

 

 

-%

 

4 

 

 

(20%)

 

18 

 

 

20%

 

34 

 

 

21%

 

94 

 

 

8%

 

128 

 

 

11%

Corporate Items and Eliminations

(31)

 

 

 

 

(1)

 

 

 

 

(1)

 

 

 

 

(2)

 

 

 

 

(35)

 

 

 

 

(1,110)

 

 

 

 

(1,145)

 

 

 

Machinery, Energy & Transportation

5,269 

 

 

34%

 

1,167 

 

 

72%

 

3,015 

 

 

34%

 

2,742 

 

 

12%

 

12,193 

 

 

31%

 

- 

 

 

-%

 

12,193 

 

 

31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Products Segment

488 

 

 

(1%)

 

65 

 

 

8%

 

96 

 

 

-%

 

125 

 

 

10%

 

774 

 

 

1%

 

- 

 

 

-%

 

774 

 

 

1%

Corporate Items and Eliminations

(38)

 

 

 

 

(11)

 

 

 

 

(9)

 

 

 

 

(20)

 

 

 

 

(78)

 

 

 

 

- 

 

 

 

 

(78)

 

 

 

Financial Products Revenues

450 

 

 

-%

 

54 

 

 

6%

 

87 

 

 

-%

 

105 

 

 

6%

 

696 

 

 

1%

 

- 

 

 

-%

 

696 

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Sales and Revenues

$

5,719 

 

 

30%

 

$

1,221 

 

 

67%

 

$

3,102 

 

 

33%

 

$

2,847 

 

 

12%

 

$

12,889 

 

 

29%

 

$

- 

 

 

-%

 

$

12,889 

 

 

29%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction Industries

$

1,604 

 

 

 

 

$

212 

 

 

 

 

$

933 

 

 

 

 

$

1,283 

 

 

 

 

$

4,032 

 

 

 

 

$

16 

 

 

 

 

$

4,048 

 

 

 

Resource Industries

507 

 

 

 

 

270 

 

 

 

 

379 

 

 

 

 

554 

 

 

 

 

1,710 

 

 

 

 

116 

 

 

 

 

1,826 

 

 

 

Energy & Transportation

1,816 

 

 

 

 

197 

 

 

 

 

929 

 

 

 

 

599 

 

 

 

 

3,541 

 

 

 

 

608 

 

 

 

 

4,149 

 

 

 

All Other Segment

7 

 

 

 

 

1 

 

 

 

 

5 

 

 

 

 

15 

 

 

 

 

28 

 

 

 

 

87 

 

 

 

 

115 

 

 

 

Corporate Items and Eliminations

2 

 

 

 

 

(1)

 

 

 

 

- 

 

 

 

 

(2)

 

 

 

 

(1)

 

 

 

 

(827)

 

 

 

 

(828)

 

 

 

Machinery, Energy & Transportation

...

 

 

 

 

679 

 

 

 

 

2,246 

 

 

 

 

2,449 

 

 

 

 

9,310 

 

 

 

 

- 

 

 

 

 

9,310 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Products Segment

493 

 

 

 

 

60 

 

 

 

 

96 

 

 

 

 

114 

 

 

 

 

763 

 

 

 

 

- 

 

 

 

 

763 

 

 

 

Corporate Items and Eliminations

(43)

 

 

 

 

(9)

 

 

 

 

(9)

 

 

 

 

(15)

 

 

...

 

 

(76)

 

 

 

 

- 

 

 

 

 

(76)

 

 

 

Financial Products Revenues

450 

 

 

 

 

51 

 

 

 

 

87 

 

 

 

 

99 

 

 

 

 

687 

 

 

 

 

- 

 

 

 

 

687 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Sales and Revenues

$

4,386 

 

 

 

 

$

730 

 

 

 

 

$

2,333 

 

 

 

 

$

2,548 

 

 

 

 

$

9,997 

 

 

 

 

$

- 

 

 

 

 

$

9,997 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Operating Profit

 

The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2020 (at left) and the second quarter of 2021 (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 second quarter of 2021 was $1.789 billion, an increase of $1.005 billion, or 128%, compared with $784 million in the second quarter of 2020. The increase was primarily due to higher sales volume. Favorable price realization, lower restructuring expenses (included in other) and higher profit from Financial Products were mostly offset by higher selling, general and administrative (SG&A) and research and development (R&D) expenses and higher manufacturing costs.

The increase in SG&A/R&D expenses was mainly driven by higher short-term incentive compensation expense, which was reinstated in 2021.

Unfavorable manufacturing costs reflected higher period manufacturing and material costs, partially offset by favorable cost absorption. Period manufacturing costs increased primarily due to higher short-term incentive compensation expense and higher labor-related costs. Cost absorption was favorable as inventory increased during the second quarter of 2021, compared with a decrease during the second quarter of 2020.

Profit (Loss) by Segment

(Millions of dollars)

Second Quarter 2021

 

Second Quarter 2020

 

$

Change

 

%

 Change

Construction Industries

$

1,024 

 

 

$

518 

 

 

$

506 

 

 

98 

%

Resource Industries

361 

 

 

152 

 

 

209 

 

 

138 

%

Energy & Transportation

731 

 

 

624 

 

 

107 

 

 

17 

%

All Other Segment

(10)

 

 

(3)

 

 

(7)

 

 

(233 

%)

Corporate Items and Eliminations

(453)

 

 

(542)

 

 

89 

 

 

 

Machinery, Energy & Transportation

1,653 

 

 

749 

 

 

904 

 

 

121 

%

 

 

 

 

 

 

 

 

Financial Products Segment

243 

 

 

148 

 

 

95 

 

 

64 

%

Corporate Items and Eliminations

(29)

 

 

(38)

 

 

9 

 

 

 

Financial Products

214 

 

 

110 

 

 

104 

 

 

95 

%

 

 

 

 

 

 

 

 

Consolidating Adjustments

(78)

 

 

(75)

 

 

(3)

 

 

 

 

 

 

 

 

 

 

 

Consolidated Operating Profit

$

1,789 

 

 

$

784 

 

 

$

1,005 

 

 

128 

%

 

 

 

 

 

 

 

 

 

Other Profit/Loss and Tax Items

  1. Other income (expense) in the second quarter of 2021 was income of $201 million, compared with income of $29 million in the second quarter of 2020. The change was primarily due to the absence of remeasurement losses resulting from the settlements of pension obligations that occurred in the second quarter of 2020, as well as favorable pension and other postemployment benefit (OPEB) costs.

  2. The provision for income taxes for the second quarter of 2021 reflected a lower estimated annual tax rate of 26%, compared with 31% for the second quarter of 2020, excluding the discrete items discussed below. The comparative tax rate for full-year 2020 was approximately 28%. The decrease in the estimated annual tax rate from full-year 2020 was mainly related to changes in the expected geographic mix of profits from a tax perspective for 2021.

In addition, a discrete tax benefit of $17 million was recorded in the second quarter of 2021 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. A $21 million tax benefit was also recorded in the second quarter of 2020 related to the $122 million of remeasurement losses resulting from the settlements of pension obligations.

 

 

 

CONSTRUCTION INDUSTRIES

(Millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2020

 

Sales Volume

 

Price Realization

 

Currency

 

Inter-Segment

 

Second Quarter 2021

 

$

 Change

 

%

 Change

Total Sales

 

$

4,048 

 

 

$

1,171 

 

 

$

238 

 

 

$

162 

 

 

$

37 

 

 

$

5,656 

 

 

$

1,608 

 

 

40 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by Geographic Region

 

 

 

 

 

 

 

 

 

 

Second Quarter 2021

 

Second Quarter 2020

 

$

Change

 

%

Change

 

 

 

 

 

 

 

 

North America

 

$

2,498 

 

 

$

1,604 

 

 

$

894 

 

 

56 

%

 

 

 

 

 

 

 

 

Latin America

 

430 

 

 

212 

 

 

218 

 

 

103 

%

 

 

 

 

 

 

 

 

EAME

 

1,291 

 

 

933 

 

 

358 

 

 

38 

%

 

 

 

 

 

 

 

 

Asia/Pacific

 

1,384 

 

 

1,283 

 

 

101 

 

 

8 

%

 

 

 

 

 

 

 

 

External Sales

 

5,603 

 

 

4,032 

 

 

1,571 

 

 

39 

%

 

 

 

 

 

 

 

 

Inter-segment

 

53 

 

 

16 

 

 

37 

 

 

231 

%

 

 

 

 

 

 

 

 

Total Sales

 

$

5,656 

 

 

$

4,048 

 

 

$

1,608 

 

 

40 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Profit

 

 

 

 

 

 

 

 

 

 

Second Quarter 2021

 

Second Quarter 2020

 

 

Change

 

%

Change

 

 

 

 

 

 

 

 

Segment Profit

 

$

1,024 

 

 

$

518 

 

 

$

506 

 

 

98 

%

 

 

 

 

 

 

 

 

Segment Profit Margin

 

18.1 

%

 

12.8 

%

 

5.3 

 pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction Industries' total sales were $5.656 billion in the second quarter of 2021, an increase of $1.608 billion, or 40%, compared with $4.048 billion in the second quarter of 2020. The increase was due to higher sales volume, favorable price realization and favorable currency impacts from the euro, Australian dollar and Chinese yuan. The increase in sales volume was driven by higher end-user demand for equipment and aftermarket parts and the impact from changes in dealer inventories. Overall, dealers decreased inventories more during the second quarter of 2020 than during the second quarter of 2021.

  1. In North America, sales increased due to higher sales volume and favorable price realization. Higher sales volume was driven by higher end-user demand primarily in residential construction and the impact from changes in dealer inventories. Dealers decreased inventories more during the second quarter of 2020 than during the second quarter of 2021.

  2. Sales increased in Latin America mostly due to higher sales volume driven by higher end-user demand across the region for equipment and aftermarket parts and the impact of changes in dealer inventories. Dealers increased inventories during the second quarter of 2021, compared with a decrease during the second quarter of 2020.

  3. In EAME, sales increased due to higher sales volume and favorable currency impacts primarily from a stronger euro. Higher sales volume was driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased inventories during the second quarter of 2021, compared with a decrease during the second quarter of 2020.

  4. Sales increased in Asia/Pacific primarily due to favorable currency impacts from a stronger Australian dollar and Chinese yuan and favorable price realization, partially offset by lower sales volume. Lower sales volume was driven by lower end-user demand for equipment, primarily in China, partially offset by the impacts from changes in dealer inventories and higher end-user demand for aftermarket parts. Dealers decreased inventories more during the second quarter of 2020 than during the second quarter of 2021.

Construction Industries' profit was $1.024 billion in the second quarter of 2021, an increase of $506 million, or 98%, compared with $518 million in the second quarter of 2020. The increase was mainly due to higher sales volume and favorable price realization, partially offset by higher SG&A/R&D expenses and unfavorable manufacturing costs.

The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense.

Increased manufacturing costs reflected higher period manufacturing and material costs partially offset by favorable impacts of cost absorption and variable labor and burden. The increase in period manufacturing costs was driven by higher short-term incentive compensation expense and higher labor costs. Cost absorption was favorable as inventory increased during the second quarter of 2021, compared with a decrease during the second quarter of 2020.

RESOURCE INDUSTRIES

(Millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2020

 

Sales Volume

 

Price Realization

 

Currency

 

Inter-Segment

 

Second Quarter 2021

 

$

 Change

 

%

 Change

Total Sales

 

$

1,826 

 

 

$

712 

 

 

$

(17)

 

 

$

66 

 

 

$

(8)

 

 

$

2,579 

 

 

$

753 

 

 

41 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by Geographic Region

 

 

 

 

 

 

 

 

 

 

Second Quarter 2021

 

Second Quarter 2020

 

$

Change

 

%

Change

 

 

 

 

 

 

 

 

North America

 

$

799 

 

 

$

507 

 

 

$

292 

 

 

58 

%

 

 

 

 

 

 

 

 

Latin America

 

487 

 

 

270 

 

 

217 

 

 

80 

%

 

 

 

 

 

 

 

 

EAME

 

525 

 

 

379 

 

 

146 

 

 

39 

%

 

 

 

 

 

 

 

 

Asia/Pacific

 

660 

 

 

554 

 

 

106 

 

 

19 

%

 

 

 

 

 

 

 

 

External Sales

 

2,471 

 

 

1,710 

 

 

761 

 

 

45 

%

 

 

 

 

 

 

 

 

Inter-segment

 

108 

 

 

116 

 

 

(8)

 

 

(7 

%)

 

 

 

 

 

 

 

 

Total Sales

 

$

2,579 

 

 

$

1,826 

 

 

$

753 

 

 

41 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Profit

 

 

 

 

 

 

 

 

 

 

Second Quarter 2021

 

Second Quarter 2020

 

 

Change

 

%

Change

 

 

 

 

 

 

 

 

Segment Profit

 

$

361 

 

 

$

152 

 

 

$

209 

 

 

138 

%

 

 

 

 

 

 

 

 

Segment Profit Margin

 

14.0 

%

 

8.3 

%

 

5.7 

 pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Resource Industries' total sales were $2.579 billion in the second quarter of 2021, an increase of $753 million, or 41%, compared with $1.826 billion in the second quarter of 2020. The increase was due to higher sales volume driven by higher end-user demand for equipment and aftermarket parts and the impacts of changes in dealer inventories. Dealers decreased inventories during the second quarter of 2020, compared to remaining about flat during the second quarter of 2021. End-user demand was higher in heavy construction and quarry and aggregates; it was also higher in mining, although to a lesser extent.

Resource Industries' profit was $361 million in the second quarter of 2021, an increase of $209 million, or 138%, compared with $152 million in the second quarter of 2020. The increase was mainly due to higher sales volume, partially offset by higher SG&A/R&D expenses. The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense.

 

 

ENERGY & TRANSPORTATION

(Millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2020

 

Sales Volume

 

Price Realization

 

Currency

 

Inter-Segment

 

Second Quarter 2021

 

$

 Change

 

%

 Change

Total Sales

 

$

4,149 

 

 

$

456 

 

 

$

12 

 

 

$

111 

 

 

$

247 

 

 

$

4,975 

 

 

$

826 

 

 

20 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by Application

 

 

 

 

 

 

 

 

 

 

Second Quarter 2021

 

Second Quarter 2020

 

$

Change

 

%

Change

 

 

 

 

 

 

 

 

Oil and Gas

 

$

1,137 

 

 

$

1,027 

 

 

$

110 

 

 

11 

%

 

 

 

 

 

 

 

 

Power Generation

 

1,052 

 

 

895 

 

 

157 

 

 

18 

%

 

 

 

 

 

 

 

 

Industrial

 

899 

 

 

678 

 

 

221 

 

 

33 

%

 

 

 

 

 

 

 

 

Transportation

 

1,032 

 

 

941 

 

 

91 

 

 

10 

%

 

 

 

 

 

 

 

 

External Sales

 

4,120 

 

 

3,541 

 

 

579 

 

 

16 

%

 

 

 

 

 

 

 

 

Inter-segment

 

855 

 

 

608 

 

 

247 

 

 

41 

%

 

 

 

 

 

 

 

 

Total Sales

 

$

4,975 

 

 

$

4,149 

 

 

$

826 

 

 

20 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Profit

 

 

 

 

 

 

 

 

 

 

Second Quarter 2021

 

Second Quarter 2020

 

 

Change

 

%

Change

 

 

 

 

 

 

 

 

Segment Profit

 

$

731 

 

 

$

624 

 

 

$

107 

 

 

17 

%

 

 

 

 

 

 

 

 

Segment Profit Margin

 

14.7 

%

 

15.0 

%

 

(0.3 

 pts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy & Transportation's total sales were $4.975 billion in the second quarter of 2021, an increase of $826 million, or 20%, compared with $4.149 billion in the second quarter of 2020. Sales increased across all applications.

  1. Oil and Gas - Sales increased mainly due to higher sales of reciprocating engine aftermarket parts in all regions. The increase was partially offset by lower sales in reciprocating engines used in well servicing applications and turbines and turbine-related services.

  2. Power Generation - Sales increased due to higher sales volume in large reciprocating engines, primarily driven by data centers, and reciprocating engine aftermarket parts.

  3. Industrial - Sales were up due to higher demand across all regions.

  4. Transportation - Sales increased in rail services and marine.

Energy & Transportation's profit was $731 million in the second quarter of 2021, an increase of $107 million, or 17%, compared with $624 million in the second quarter of 2020. The increase was due to higher sales volume partially offset by higher SG&A/R&D expenses and period manufacturing costs. Both SG&A/R&D expenses and period manufacturing costs were driven by higher short-term incentive compensation expense and acquisition-related expenses.

 

 

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues by Geographic Region

 

 

 

 

 

 

 

 

 

 

Second Quarter 2021

 

Second Quarter 2020

 

$

Change

 

%

Change

 

 

 

 

 

 

 

 

North America

 

$

488 

 

 

$

493 

 

 

$

(5)

 

 

(1 

%)

 

 

 

 

 

 

 

 

Latin America

 

65 

 

 

60 

 

 

5 

 

 

8 

%

 

 

 

 

 

 

 

 

EAME

 

96 

 

 

96 

 

 

- 

 

 

- 

%

 

 

 

 

 

 

 

 

Asia/Pacific

 

125 

 

 

114 

 

 

11 

 

 

10 

%

 

 

 

 

 

 

 

 

Total Revenues

 

$

774 

 

 

$

763 

 

 

$

11 

 

 

1 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Profit

 

 

 

 

 

 

 

 

 

 

Second Quarter 2021

 

Second Quarter 2020

 

 

Change

 

%

Change

 

 

 

 

 

 

 

 

Segment Profit

 

$

243 

 

 

$

148 

 

 

$

95 

 

 

64 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Products' segment revenues were $774 million in the second quarter of 2021, an increase of $11 million, or 1%, from the second quarter of 2020.

Financial Products' segment profit was $243 million in the second quarter of 2021, compared with $148 million in the second quarter of 2020. The increase was mainly due to lower provision for credit losses at Cat Financial, higher net yield on average earning assets and a favorable impact from returned or repossessed equipment. These favorable impacts were partially offset by an increase in SG&A expenses primarily due to higher short-term incentive compensation expense.

At the end of the second quarter of 2021, past dues at Cat Financial were 2.58%, compared with 3.74% at the end of the second quarter of 2020. Past dues decreased across all portfolio segments as global markets generally improved. Write-offs, net of recoveries, were $54 million for the second quarter of 2021, compared with $30 million for the second quarter of 2020. As of June 30, 2021, Cat Financial's allowance for credit losses totaled $402 million, or 1.46% of finance receivables, compared with $441 million, or 1.64% of finance receivables at March 31, 2021. The allowance for credit losses at year-end 2020 was $479 million, or 1.77% of finance receivables.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $482 million in the second quarter of 2021, a decrease of $98 million from the second quarter of 2020, primarily due to favorable impacts of segment reporting methodology differences and lower restructuring costs, partially offset by higher expenses due to timing differences.

 

Notes

  1. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.

  2. End-user demand is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Friday, July 30, 2021.

  3. Information on non-GAAP financial measures is included in the appendix on page 13.

  4. Some amounts within this report are rounded to the millions or billions and may not add.

  5. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Friday, July 30, 2021, to discuss its 2021 second-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 Caterpillar

With 2020 sales and revenues of $41.7 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Since 1925, we've been driving sustainable progress and helping customers build a better world through innovative products and services. Throughout the product life cycle, we offer services built on cutting-edge technology and decades of product expertise. These products and services, backed by our global dealer network, provide exceptional value to help our customers succeed. We do 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/social-media.

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)

Caterpillar investor relations contact: Jennifer Driscoll, +1 224-551-4382 or Driscoll_Jennifer@cat.com

Caterpillar media contact: Kate Kenny, +1 309-361-9333 or Kenny_Kate@cat.com

 

 

 

 

 

 

 

 

 

 

 

 

 

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 two significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring costs, which were incurred to generate longer-term benefits and (ii) remeasurement losses resulting from the settlements of pension obligations in the second quarter of 2020. The company does not consider these items 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 2021, 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 Profit

 

Operating Profit Margin

 

Profit Before Taxes

 

Provision (Benefit) for Income Taxes

 

Effective Tax Rate

 

Profit

 

Profit per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2021 - U.S. GAAP

 

$

1,789 

 

 

13.9 

%

 

$

1,870 

 

 

$

470 

 

 

25.1 

%

 

$

1,413 

 

 

$

2.56 

 

Restructuring costs

 

25 

 

 

0.2 

%

 

25 

 

 

3 

 

 

15.0 

%

 

22 

 

 

$

0.04 

 

Three Months Ended June 30, 2021 - Adjusted

 

$

1,814 

 

 

14.1 

%

 

$

1,895 

 

 

$

473 

 

 

25.0 

%

 

$

1,435 

 

 

$

2.60 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2020 - U.S. GAAP

 

$

784 

 

 

7.8 

%

 

$

678 

 

 

$

227 

 

 

33.5 

%

 

$

458 

 

 

$

0.84 

 

Restructuring costs

 

147 

 

 

1.5 

%

 

147 

 

 

15 

 

 

10.2 

%

 

132 

 

 

$

0.24 

 

Remeasurement losses of pension obligations

 

- 

 

 

- 

%

 

122 

 

 

21 

 

 

17.2 

%

 

101 

 

 

$

0.19 

 

Three Months Ended June 30, 2020 - Adjusted

 

$

931 

 

 

9.3 

%

 

$

947 

 

 

$

263 

 

 

27.8 

%

 

$

691 

 

 

$

1.27 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 15 to 25 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

June 30,

 

Six Months Ended

June 30,

 

2021

 

2020

 

2021

 

2020

Sales and revenues:

 

 

 

 

 

 

 

Sales of Machinery, Energy & Transportation

$

12,193 

 

 

$

9,310 

 

 

$

23,384 

 

 

$

19,224 

 

Revenues of Financial Products

696 

 

 

687 

 

 

1,392 

 

 

1,408 

 

Total sales and revenues

12,889 

 

 

9,997 

 

 

24,776 

 

 

20,632 

 

 

 

 

 

 

 

 

 

Operating costs:

 

 

 

 

 

 

 

Cost of goods sold

8,881 

 

 

7,113 

 

 

16,893 

 

 

14,379 

 

Selling, general and administrative expenses

1,364 

 

 

1,179 

 

 

2,603 

 

 

2,300 

 

Research and development expenses

446 

 

 

341 

 

 

820 

 

 

697 

 

Interest expense of Financial Products

116 

 

 

149 

 

 

241 

 

 

324 

 

Other operating (income) expenses

293 

 

 

431 

 

 

616 

 

 

744 

 

Total operating costs

11,100 

 

 

9,213 

 

 

21,173 

 

 

18,444 

 

 

 

 

 

 

 

 

 

Operating profit

1,789 

 

 

784 

 

 

3,603 

 

 

2,188 

 

 

 

 

 

 

 

 

 

Interest expense excluding Financial Products

120 

 

 

135 

 

 

262 

 

 

248 

 

Other income (expense)

201 

 

 

29 

 

 

526 

 

 

251 

 

 

 

 

 

 

 

 

 

Consolidated profit before taxes

1,870 

 

 

678 

 

 

3,867 

 

 

2,191 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

470 

 

 

227 

 

 

945 

 

 

652 

 

Profit of consolidated companies

1,400 

 

 

451 

 

 

2,922 

 

 

1,539 

 

 

 

 

 

 

 

 

 

Equity in profit (loss) of unconsolidated affiliated companies

14 

 

 

8 

 

 

23 

 

 

13 

 

 

 

 

 

 

 

 

 

Profit of consolidated and affiliated companies

1,414 

 

 

459 

 

 

2,945 

 

 

1,552 

 

 

 

 

 

 

 

 

 

Less: Profit (loss) attributable to noncontrolling interests

1 

 

 

1 

 

 

2 

 

 

2 

 

 

 

 

 

 

 

 

 

Profit 1

$

1,413 

 

 

$

458 

 

 

$

2,943 

 

 

$

1,550 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit per common share

$

2.58 

 

 

$

0.84 

 

 

$

5.38 

 

 

$

2.85 

 

Profit per common share - diluted 2

$

2.56 

 

 

$

0.84 

 

 

$

5.33 

 

 

$

2.83 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding (millions)

 

 

 

 

 

 

 

- Basic

547.9 

 

 

541.5 

 

 

547.1 

 

 

544.5 

 

- Diluted 2

552.1 

 

 

544.5 

 

 

551.8 

 

 

548.2 

 

 

 

 

 

 

 

 

 

 

1

Profit attributable to common shareholders.

2

Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

 

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)

 

June 30,
2021

 

December 31,
2020

Assets

 

 

 

Current assets:

 

 

 

Cash and short-term investments

$

10,831 

 

 

$

9,352 

 

Receivables - trade and other

7,840 

 

 

7,317 

 

Receivables - finance

9,523 

 

 

9,463 

 

Prepaid expenses and other current assets

2,080 

 

 

1,930 

 

Inventories

12,672 

 

 

11,402 

 

Total current assets

42,946 

 

 

39,464 

 

 

 

 

 

Property, plant and equipment - net

12,014 

 

 

12,401 

 

Long-term receivables - trade and other

1,206 

 

 

1,185 

 

Long-term receivables - finance

12,590 

 

 

12,222 

 

Noncurrent deferred and refundable income taxes

1,455 

 

 

1,523 

 

Intangible assets

1,176 

 

 

1,308 

 

Goodwill

6,372 

 

 

6,394 

 

Other assets

3,938 

 

 

3,827 

 

Total assets

$

81,697 

 

 

$

78,324 

 

 

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Short-term borrowings:

 

 

 

-- Machinery, Energy & Transportation

$

4 

 

 

$

10 

 

-- Financial Products

3,421 

 

 

2,005 

 

Accounts payable

6,921 

 

 

6,128 

 

Accrued expenses

3,556 

 

 

3,642 

 

Accrued wages, salaries and employee benefits

1,759 

 

 

1,096 

 

Customer advances

1,157 

 

 

1,108 

 

Dividends payable

608 

 

 

562 

 

Other current liabilities

2,126 

 

 

2,017 

 

Long-term debt due within one year:

 

 

 

-- Machinery, Energy & Transportation

50 

 

 

1,420 

 

-- Financial Products

7,906 

 

 

7,729 

 

Total current liabilities

27,508 

 

 

25,717 

 

 

 

 

 

Long-term debt due after one year:

 

 

 

-- Machinery, Energy & Transportation

9,752 

 

 

9,749 

 

-- Financial Products

16,452 

 

 

16,250 

 

Liability for postemployment benefits

6,581 

 

 

6,872 

 

Other liabilities

4,524 

 

 

4,358 

 

Total liabilities

64,817 

 

 

62,946 

 

 

 

 

 

Shareholders' equity

 

 

 

Common stock

6,293 

 

 

6,230 

 

Treasury stock

(25,240)

 

 

(25,178)

 

Profit employed in the business

36,934 

 

 

35,167 

 

Accumulated other comprehensive income (loss)

(1,154)

 

 

(888)

 

Noncontrolling interests

47 

 

 

47 

 

Total shareholders' equity

16,880 

 

 

15,378 

 

Total liabilities and shareholders' equity

$

81,697 

 

 

$

78,324 

 

 

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

 

Six Months Ended

June 30,

 

2021

 

2020

Cash flow from operating activities:

 

 

 

Profit of consolidated and affiliated companies

$

2,945 

 

 

$

1,552 

 

Adjustments for non-cash items:

 

 

 

Depreciation and amortization

1,173 

 

 

1,222 

 

Net gain on remeasurement of pension obligations

- 

 

 

(132)

 

Provision (benefit) for deferred income taxes

68 

 

 

(32)

 

Other

(20)

 

 

674 

 

Changes in assets and liabilities, net of acquisitions and divestitures:

 

 

 

Receivables - trade and other

(343)

 

 

1,176 

 

Inventories

(1,179)

 

 

(145)

 

Accounts payable

893 

 

 

(655)

 

Accrued expenses

22 

 

 

(253)

 

Accrued wages, salaries and employee benefits

618 

 

 

(648)

 

Customer advances

49 

 

 

(2)

 

Other assets - net

(47)

 

 

(7)

 

Other liabilities - net

(133)

 

 

(229)

 

Net cash provided by (used for) operating activities

4,046 

 

 

2,521 

 

Cash flow from investing activities:

 

 

 

Capital expenditures - excluding equipment leased to others

(419)

 

 

(472)

 

Expenditures for equipment leased to others

(681)

 

 

(526)

 

Proceeds from disposals of leased assets and property, plant and equipment

636 

 

 

382 

 

Additions to finance receivables

(6,203)

 

 

(6,712)

 

Collections of finance receivables

5,580 

 

 

6,801 

 

Proceeds from sale of finance receivables

27 

 

 

31 

 

Investments and acquisitions (net of cash acquired)

(398)

 

 

(49)

 

Proceeds from sale of businesses and investments (net of cash sold)

28 

 

 

13 

 

Proceeds from sale of securities

276 

 

 

151 

 

Investments in securities

(500)

 

 

(369)

 

Other - net

(63)

 

 

7 

 

Net cash provided by (used for) investing activities

(1,717)

 

 

(743)

 

Cash flow from financing activities:

 

 

 

Dividends paid

(1,126)

 

 

(1,125)

 

Common stock issued, including treasury shares reissued

123 

 

 

(10)

 

Common shares repurchased

(251)

 

 

(1,130)

 

Proceeds from debt issued (original maturities greater than three months)

4,906 

 

 

6,159 

 

Payments on debt (original maturities greater than three months)

(5,966)

 

 

(4,629)

 

Short-term borrowings - net (original maturities three months or less)

1,460 

 

 

(477)

 

Other - net

(2)

 

 

(1)

 

Net cash provided by (used for) financing activities

(856)

 

 

(1,213)

 

Effect of exchange rate changes on cash

3 

 

 

(66)

 

Increase (decrease) in cash and short-term investments and restricted cash

1,476 

 

 

499 

 

Cash and short-term investments and restricted cash at beginning of period

9,366 

 

 

8,292 

 

Cash and short-term investments and restricted cash at end of period

$

10,842 

 

 

$

8,791 

 

 

All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.

 

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2021

(Unaudited)

(Millions of dollars)

 

 

 

Supplemental Consolidating Data

 

 

Consolidated

 

Machinery, Energy & Transportation

 

Financial

Products

 

Consolidating

Adjustments

 

Sales and revenues:

 

 

 

 

 

 

 

 

Sales of Machinery, Energy & Transportation

$

12,193 

 

 

$

12,193 

 

 

$

- 

 

 

$

- 

 

 

Revenues of Financial Products

696 

 

 

- 

 

 

796 

 

 

(100)

 

1

Total sales and revenues

12,889 

 

 

12,193 

 

 

796 

 

 

(100)

 

 

 

 

 

 

 

 

 

 

 

Operating costs:

 

 

 

 

 

 

 

 

Cost of goods sold

8,881 

 

 

8,884 

 

 

- 

 

 

(3)

 

2

Selling, general and administrative expenses

1,364 

 

 

1,210 

 

 

159 

 

 

(5)

 

2

Research and development expenses

446 

 

 

446 

 

 

- 

 

 

- 

 

 

Interest expense of Financial Products

116 

 

 

- 

 

 

116 

 

 

- 

 

 

Other operating (income) expenses

293 

 

 

- 

 

 

307 

 

 

(14)

 

2

Total operating costs

11,100 

 

 

10,540 

 

 

582 

 

 

(22)

 

 

 

 

 

 

 

 

 

 

 

Operating profit

1,789 

 

 

1,653 

 

 

214 

 

 

(78)

 

 

 

 

 

 

 

 

 

 

 

Interest expense excluding Financial Products

120 

 

 

120 

 

 

- 

 

 

- 

 

 

Other income (expense)

201 

 

 

445 

 

 

28 

 

 

(272)

 

3

 

 

 

 

 

 

 

 

 

Consolidated profit before taxes

1,870 

 

 

1,978 

 

 

242 

 

 

(350)

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

470 

 

 

415 

 

 

55 

 

 

- 

 

 

Profit of consolidated companies

1,400 

 

 

1,563 

 

 

187 

 

 

(350)

 

 

 

 

 

 

 

 

 

 

 

Equity in profit (loss) of unconsolidated affiliated companies

14 

 

 

17 

 

 

- 

 

 

(3)

 

4

 

 

 

 

 

 

 

 

 

Profit of consolidated and affiliated companies

1,414 

 

 

1,580 

 

 

187 

 

 

(353)

 

 

 

 

 

 

 

 

 

 

 

Less: Profit (loss) attributable to noncontrolling interests

1 

 

 

1 

 

 

3 

 

 

(3)

 

5

 

 

 

 

 

 

 

 

 

Profit 6

$

1,413 

 

 

$

1,579 

 

 

$

184 

 

 

$

(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 Results of Operations

For the Three Months Ended June 30, 2020

(Unaudited)

(Millions of dollars)

 

 

 

Supplemental Consolidating Data

 

 

Consolidated

 

Machinery, Energy & Transportation

 

Financial

Products

 

Consolidating

Adjustments

 

Sales and revenues:

 

 

 

 

 

 

 

 

Sales of Machinery, Energy & Transportation

$

9,310 

 

 

$

9,310 

 

 

$

- 

 

 

$

- 

 

 

Revenues of Financial Products

687 

 

 

- 

 

 

780 

 

 

(93)

 

1

Total sales and revenues

9,997 

 

 

9,310 

 

 

780 

 

 

(93)

 

 

 

 

 

 

 

 

 

 

 

Operating costs:

 

 

 

 

 

 

 

 

Cost of goods sold

7,113 

 

 

7,114 

 

 

- 

 

 

(1)

 

2

Selling, general and administrative expenses

1,179 

 

 

984 

 

 

201 

 

 

(6)

 

2

Research and development expenses

341 

 

 

341 

 

 

- 

 

 

- 

 

 

Interest expense of Financial Products

149 

 

 

- 

 

 

149 

 

 

- 

 

 

Other operating (income) expenses

431 

 

 

122 

 

 

320 

 

 

(11)

 

2

Total operating costs

9,213 

 

 

8,561 

 

 

670 

 

 

(18)

 

 

 

 

 

 

 

 

 

 

 

Operating profit

784 

 

 

749 

 

 

110 

 

 

(75)

 

 

 

 

 

 

 

 

 

 

 

Interest expense excluding Financial Products

135 

 

 

135 

 

 

- 

 

 

- 

 

 

Other income (expense)

29 

 

 

(57)

 

 

31 

 

 

55 

 

3

 

 

 

 

 

 

 

 

 

Consolidated profit before taxes

678 

 

 

557 

 

 

141 

 

 

(20)

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

227 

 

 

190 

 

 

37 

 

 

- 

 

 

Profit of consolidated companies

451 

 

 

367 

 

 

104 

 

 

(20)

 

 

 

 

 

 

 

 

 

 

 

Equity in profit (loss) of unconsolidated affiliated companies

8 

 

 

13 

 

 

- 

 

 

(5)

 

4

 

 

 

 

 

 

 

 

 

Profit of consolidated and affiliated companies

459 

 

 

380 

 

 

104 

 

 

(25)

 

 

 

 

 

 

 

 

 

 

 

Less: Profit (loss) attributable to noncontrolling interests

1 

 

 

1 

 

 

5 

 

 

(5)

 

5

 

 

 

 

 

 

 

 

 

Profit 6

$

458 

 

 

$

379 

 

 

$

99 

 

 

$

(20)

 

 

 

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 Operations

For the Six Months Ended June 30, 2021

(Unaudited)

(Millions of dollars)

 

 

 

Supplemental Consolidating Data

 

 

Consolidated

 

Machinery, Energy & Transportation

 

Financial

Products

 

Consolidating

Adjustments

 

Sales and revenues:

 

 

 

 

 

 

 

 

Sales of Machinery, Energy & Transportation

$

23,384 

 

 

$

23,384 

 

 

$

- 

 

 

$

- 

 

 

Revenues of Financial Products

1,392 

 

 

- 

 

 

1,584 

 

 

(192)

 

1

Total sales and revenues

24,776 

 

 

23,384 

 

 

1,584 

 

 

(192)

 

 

 

 

 

 

 

 

 

 

 

Operating costs:

 

 

 

 

 

 

 

 

Cost of goods sold

16,893 

 

 

16,897 

 

 

- 

 

 

(4)

 

2

Selling, general and administrative expenses

2,603 

 

 

2,324 

 

 

283 

 

 

(4)

 

2

Research and development expenses

820 

 

 

820 

 

 

- 

 

 

- 

 

 

Interest expense of Financial Products

241 

 

 

- 

 

 

241 

 

 

- 

 

 

Other operating (income) expenses

616 

 

 

26 

 

 

621 

 

 

(31)

 

2

Total operating costs

21,173 

 

 

20,067 

 

 

1,145 

 

 

(39)

 

 

 

 

 

 

 

 

 

 

 

Operating profit

3,603 

 

 

3,317 

 

 

439 

 

 

(153)

 

 

 

 

 

 

 

 

 

 

 

Interest expense excluding Financial Products

262 

 

 

262 

 

 

- 

 

 

- 

 

 

Other income (expense)

526 

 

 

676 

 

 

47 

 

 

(197)

 

3

 

 

 

 

 

 

 

 

 

Consolidated profit before taxes

3,867 

 

 

3,731 

 

 

486 

 

 

(350)

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

945 

 

 

827 

 

 

118 

 

 

- 

 

 

Profit of consolidated companies

2,922 

 

 

2,904 

 

 

368 

 

 

(350)

 

 

 

 

 

 

 

 

 

 

 

Equity in profit (loss) of unconsolidated affiliated companies

23 

 

 

29 

 

 

- 

 

 

(6)

 

4

 

 

 

 

 

 

 

 

 

Profit of consolidated and affiliated companies

2,945 

 

 

2,933 

 

 

368 

 

 

(356)

 

 

 

 

 

 

 

 

 

 

 

Less: Profit (loss) attributable to noncontrolling interests

2 

 

 

2 

 

 

6 

 

 

(6)

 

5

 

 

 

 

 

 

 

 

 

Profit 6

$

2,943 

 

 

$

2,931 

 

 

$

362 

 

 

$

(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 Results of Operations

For the Six Months Ended June 30, 2020

(Unaudited)

(Millions of dollars)

 

 

 

Supplemental Consolidating Data

 

 

Consolidated

 

Machinery, Energy & Transportation

 

Financial

Products

 

Consolidating

Adjustments

 

Sales and revenues:

 

 

 

 

 

 

 

 

Sales of Machinery, Energy & Transportation

$

19,224 

 

 

$

19,224 

 

 

$

- 

 

 

$

- 

 

 

Revenues of Financial Products

1,408 

 

 

- 

 

 

1,610 

 

 

(202)

 

1

Total sales and revenues

20,632 

 

 

19,224 

 

 

1,610 

 

 

(202)

 

 

 

 

 

 

 

 

 

 

 

Operating costs:

 

 

 

 

 

 

 

 

Cost of goods sold

14,379 

 

 

14,381 

 

 

- 

 

 

(2)

 

2

Selling, general and administrative expenses

2,300 

 

 

1,924 

 

 

383 

 

 

(7)

 

2

Research and development expenses

697 

 

 

697 

 

 

- 

 

 

- 

 

 

Interest expense of Financial Products

324 

 

 

- 

 

 

325 

 

 

(1)

 

3

Other operating (income) expenses

744 

 

 

132 

 

 

640 

 

 

(28)

 

2

Total operating costs

18,444 

 

 

17,134 

 

 

1,348 

 

 

(38)

 

 

 

 

 

 

 

 

 

 

 

Operating profit

2,188 

 

 

2,090 

 

 

262 

 

 

(164)

 

 

 

 

 

 

 

 

 

 

 

Interest expense excluding Financial Products

248 

 

 

247 

 

 

- 

 

 

1 

 

3

Other income (expense)

251 

 

 

122 

 

 

(16)

 

 

145 

 

4

 

 

 

 

 

 

 

 

 

Consolidated profit before taxes

2,191 

 

 

1,965 

 

 

246 

 

 

(20)

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

652 

 

 

587 

 

 

65 

 

 

- 

 

 

Profit of consolidated companies

1,539 

 

 

1,378 

 

 

181 

 

 

(20)

 

 

 

 

 

 

 

 

 

 

 

Equity in profit (loss) of unconsolidated affiliated companies

13 

 

 

22 

 

 

- 

 

 

(9)

 

5

 

 

 

 

 

 

 

 

 

Profit of consolidated and affiliated companies

1,552 

 

 

1,400 

 

 

181 

 

 

(29)

 

 

 

 

 

 

 

 

 

 

 

Less: Profit (loss) attributable to noncontrolling interests

2 

 

 

2 

 

 

9 

 

 

(9)

 

6

 

 

 

 

 

 

 

 

 

Profit 7

$

1,550 

 

 

$

1,398 

 

 

$

172 

 

 

$

(20)

 

 

 

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 Financial Position

At June 30, 2021

(Unaudited)

(Millions of dollars)

 

 

 

Supplemental Consolidating Data

 

 

Consolidated

 

Machinery,

Energy &

Transportation

 

Financial

Products

 

Consolidating

Adjustments

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and short-term investments

$

10,831 

 

 

$

10,028 

 

 

$

803 

 

 

$

- 

 

 

Receivables - trade and other

7,840 

 

 

3,169 

 

 

455 

 

 

4,216 

 

1,2

Receivables - finance

9,523 

 

 

- 

 

 

13,863 

 

 

(4,340)

 

2

Prepaid expenses and other current assets

2,080 

 

 

1,756 

 

 

479 

 

 

(155)

 

3

Inventories

12,672 

 

 

12,672 

 

 

- 

 

 

- 

 

 

Total current assets

42,946 

 

 

27,625 

 

 

15,600 

 

 

(279)

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment - net

12,014 

 

 

8,035 

 

 

3,979 

 

 

- 

 

 

Long-term receivables - trade and other

1,206 

 

 

375 

 

 

176 

 

 

655 

 

1,2

Long-term receivables - finance

12,590 

 

 

- 

 

 

13,273 

 

 

(683)

 

2

Noncurrent deferred and refundable income taxes

1,455 

 

 

1,980 

 

 

103 

 

 

(628)

 

4

Intangible assets

1,176 

 

 

1,176 

 

 

- 

 

 

- 

 

 

Goodwill

6,372 

 

 

6,372 

 

 

- 

 

 

- 

 

 

Other assets

3,938 

 

 

3,250 

 

 

1,899 

 

 

(1,211)

 

5

Total assets

$

81,697 

 

 

$

48,813 

 

 

$

35,030 

 

 

$

(2,146)

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Short-term borrowings

$

3,425 

 

 

$

4 

 

 

$

3,421 

 

 

$

- 

 

 

Short-term borrowings with consolidated companies

- 

 

 

- 

 

 

- 

 

 

- 

 

 

Accounts payable

6,921 

 

 

6,830 

 

 

215 

 

 

(124)

 

6

Accrued expenses

3,556 

 

 

3,191 

 

 

365 

 

 

- 

 

 

Accrued wages, salaries and employee benefits

1,759 

 

 

1,719 

 

 

40 

 

 

- 

 

 

Customer advances

1,157 

 

 

1,157 

 

 

- 

 

 

- 

 

 

Dividends payable

608 

 

 

608 

 

 

- 

 

 

- 

 

 

Other current liabilities

2,126 

 

 

1,658 

 

 

646 

 

 

(178)

 

4,7

Long-term debt due within one year

7,956 

 

 

50 

 

 

7,906 

 

 

- 

 

 

Total current liabilities

27,508 

 

 

15,217 

 

 

12,593 

 

 

(302)

 

 

 

 

 

 

 

 

 

 

 

Long-term debt due after one year

26,204 

 

 

9,780 

 

 

16,452 

 

 

(28)

 

8

Liability for postemployment benefits

6,581 

 

 

6,580 

 

 

1 

 

 

- 

 

 

Other liabilities

4,524 

 

 

3,851 

 

 

1,374 

 

 

(701)

 

4

Total liabilities

64,817 

 

 

35,428 

 

 

30,420 

 

 

(1,031)

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

Common stock

6,293 

 

 

6,293 

 

 

919 

 

 

(919)

 

9

Treasury stock

(25,240)

 

 

(25,240)

 

 

- 

 

 

- 

 

 

Profit employed in the business

36,934 

 

 

32,846 

 

 

4,077 

 

 

11