Caterpillar(CAT) - 2024 Q2 - Quarterly Report

Financial Performance - Total sales and revenues for Q2 2024 were $16.689 billion, a decrease of$629 million, or 4 percent, compared to $17.318 billion in Q2 2023[189]. - For the six months ended June 30, 2024, total sales and revenues were$32.488 billion, a decrease of $692 million, or 2 percent, compared to$33.180 billion in the same period of 2023[189]. - Consolidated sales and revenues for Q2 2024 were $16,689 million, a decrease of$629 million or 4% compared to Q2 2023[204]. - Total sales and revenues for the six months ended June 30, 2024, reached $32,488 million, with$30,800 million from Machinery, Energy & Transportation and $1,688 million from Financial Products[276]. - Total sales and revenues reached$33,180 million, with Machinery, Energy & Transportation contributing $31,644 million and Financial Products contributing$1,536 million[283]. Profitability Metrics - Operating profit margin for Q2 2024 was 20.9 percent, slightly down from 21.1 percent in Q2 2023; adjusted operating profit margin improved to 22.4 percent from 21.3 percent[189]. - Profit per share for Q2 2024 was $5.48, down from$5.67 in Q2 2023; adjusted profit per share increased to $5.99 from$5.55[189]. - Operating profit for Q2 2024 was $3,482 million, down$170 million or 5% from $3,652 million in Q2 2023[206]. - The operating profit margin for Q2 2024 was 20.9$7,001 million, an increase of $618 million or 10$6,383 million for the same period in 2023[220]. - The operating profit margin improved to 21.5% for the six months ended June 30, 2024, compared to 19.2% for the same period in 2023[220]. Segment Performance - Construction Industries segment profit decreased by $62 million to$1,741 million, a 3% decline compared to Q2 2023[207]. - Energy & Transportation segment profit increased by $256 million to$1,525 million, a 20% increase from Q2 2023[207]. - Resource Industries segment profit decreased by $22 million to$718 million, a 3% decline compared to Q2 2023[207]. - Construction Industries' total sales were $6.683 billion in Q2 2024, a decrease of$471 million, or 7 percent, from $7.154 billion in Q2 2023[209]. - Resource Industries' total sales were$3.206 billion in Q2 2024, a decrease of $357 million, or 10 percent, compared to$3.563 billion in Q2 2023[210]. - Energy & Transportation's total sales increased to $7.337 billion in Q2 2024, an increase of$118 million, or 2 percent, from $7.219 billion in Q2 2023[211]. Costs and Expenses - Restructuring costs for 2024 are expected to be around$450 million, with capital expenditures projected between $2.0 billion and$2.5 billion[193]. - Interest expense excluding Financial Products was $137 million in Q2 2024, up from$127 million in Q2 2023 due to higher borrowing rates[208]. - The effective tax rate for Q2 2024 was 23.9%, compared to 20.6% in Q2 2023[208]. - Other income in Q2 2024 was $155 million, an increase from$127 million in Q2 2023, driven by favorable impacts from commodity hedges[208]. - Total operating costs for the six months ended June 30, 2024, amounted to $25,487 million, with a significant portion attributed to the cost of goods sold at$19,812 million[277]. Cash Flow and Capital Management - Consolidated operating cash flow for the first six months of 2024 was $5.07 billion, an increase of$251 million compared to the same period in 2023[239]. - Capital expenditures for the first six months of 2024 were $841 million, with expectations of$2.0 billion to $2.5 billion for the full year[253]. - The company repurchased$6.28 billion of common stock in the first six months of 2024, with $21.6 billion remaining under the share repurchase authorizations[256]. - The company ended the period with cash, cash equivalents, and restricted cash totaling$7,394 million, an increase of $381 million from the previous period[292]. Future Outlook - The company anticipates slightly lower sales and revenues for the full year 2024 compared to 2023, with a slight decrease in machine dealer inventories expected[193]. - The company expects services revenues to grow in the second half of 2024 compared to the second half of 2023[193]. - The company anticipates future performance may be affected by global economic conditions, commodity price changes, and competitive market dynamics[294]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[283]. Risks and Challenges - Risks include potential disruptions in global financial markets and compliance with financial regulations, which could impact liquidity and cost of borrowing[294]. - The company has outlined various factors that could materially affect its future results, including changes in interest rates and currency fluctuations[294]. - The company emphasizes the importance of maintaining credit ratings to ensure favorable borrowing conditions and access to capital markets[294].