Caterpillar(US:CAT)2025-01-30 11:32Sales and Revenues - Fourth-quarter 2024 sales and revenues were $16.2 billion, a 5% decrease compared to $17.1 billion in the fourth quarter of 2023[4] - Full-year 2024 sales and revenues were $64.8 billion, down 3% compared to $67.1 billion in 2023[5] - Total sales and revenues for Q4 2024 were $16.215 billion, a decrease from $17.070 billion in Q4 2023[77] - Total sales and revenues for Machinery, Energy & Transportation in 2024 were $61.363 billion, with Financial Products contributing $4.212 billion, resulting in a total of $64.809 billion[99] - Total sales and revenues for Machinery, Energy & Transportation in 2023 were $63.869 billion, with Financial Products contributing $3.927 billion, resulting in a total of $67.060 billion[103] Profit and Earnings - Fourth-quarter 2024 profit per share was $5.78, compared to $5.28 in the fourth quarter of 2023[4] - Full-year 2024 profit per share was $22.05, compared to $20.12 in 2023[5] - Adjusted profit per share for Q4 2024 was $5.14, compared to $5.78 under GAAP[63] - Adjusted profit per share for 2024 was $21.90, compared to $22.05 under GAAP[63] - Profit of consolidated companies for Q4 2024 was $2.780 billion, compared to $2.662 billion in Q4 2023[77] - Profit of consolidated companies for 2024 was $10.744 billion, with Machinery, Energy & Transportation contributing $10.645 billion and Financial Products contributing $724 million[99] - Profit of consolidated companies for 2023 was $10.269 billion, with Machinery, Energy & Transportation contributing $9.928 billion and Financial Products contributing $686 million[103] - Consolidated profit of $10,788 million, with Machinery, Energy & Transportation contributing $10,689 million and Financial Products contributing $724 million[122] Operating Profit and Margins - Fourth-quarter 2024 operating profit margin was 18.0%, compared to 18.4% in the fourth quarter of 2023[4] - Full-year 2024 operating profit margin was 20.2%, compared to 19.3% in 2023[5] - Operating profit for Q4 2024 was $2.924 billion, a decrease of $210 million (7%) compared to $3.134 billion in Q4 2023, primarily due to lower sales volume[23] - Adjusted operating profit margin for Q4 2024 was 18.3%, down from 18.9% in Q4 2023[23] - Operating profit for Q4 2024 was $2.924 billion, down from $3.134 billion in Q4 2023[77] - Operating profit for 2024 was $13.072 billion, with Machinery, Energy & Transportation contributing $13.098 billion and Financial Products contributing $605 million[99] - Operating profit for 2023 was $12.966 billion, with Machinery, Energy & Transportation contributing $12.659 billion and Financial Products contributing $923 million[103] - Adjusted operating profit for Q4 2024 increased to $2,961 million, up from $2,924 million under GAAP, with a margin of 18.3%[63] - Annual adjusted operating profit for 2024 reached $13,431 million, with a margin of 20.7%, up from $13,072 million under GAAP[63] Segment Performance - Construction Industries segment sales decreased by 8% to $6.0 billion in the fourth quarter of 2024[14] - Resource Industries segment sales decreased by 9% to $2.96 billion in the fourth quarter of 2024[14] - Construction Industries' sales decreased by $516 million (8%) to $6.003 billion in Q4 2024, driven by unfavorable price realization of $300 million and lower sales volume of $227 million[34] - Resource Industries' sales decreased by $280 million (9%) to $2.962 billion in Q4 2024, primarily due to lower sales volume[40] - Energy & Transportation segment sales increased by $48 million (3%) to $1.477 billion in Q4 2024[24] - Energy & Transportation's total sales decreased by $20 million to $7.649 billion in Q4 2024 compared to $7.669 billion in Q4 2023, primarily due to lower sales volume of $301 million, partially offset by favorable price realization of $221 million and higher inter-segment sales of $52 million[43] - Energy & Transportation's segment profit increased by $48 million (3%) to $1.477 billion in Q4 2024, driven by favorable price realization of $221 million, partially offset by lower sales volume impact of $158 million and unfavorable manufacturing costs of $17 million[44] - Oil and Gas sales decreased by $320 million (14%) to $1.927 billion in Q4 2024, primarily due to lower sales in reciprocating engines and turbines[46] - Power Generation sales increased by $407 million (22%) to $2.242 billion in Q4 2024, driven by higher sales in large reciprocating engines and turbines[46] - Financial Products' segment revenues increased by $43 million (4%) to $1.024 billion in Q4 2024, primarily due to higher average earning assets of $29 million and higher average financing rates of $11 million[47] - Financial Products' segment profit decreased by $68 million (29%) to $166 million in Q4 2024, mainly due to unfavorable equity securities impact of $23 million, lower margin impact of $17 million, and higher credit loss provisions of $17 million[48] - Resource Industries' segment profit decreased by $134 million (22%) to $466 million in Q4 2024, primarily due to lower sales volume[41] Cash Flow and Financial Position - Enterprise operating cash flow for 2024 was $12.0 billion, with $6.9 billion of enterprise cash at the end of the fourth quarter[9] - The company deployed $10.3 billion of cash for share repurchases and dividends in 2024[6] - Net cash provided by operating activities for 2024 was $12.035 billion, down from $12.885 billion in 2023[84] - Capital expenditures for 2024 were $1.988 billion, up from $1.597 billion in 2023[84] - Dividends paid in 2024 totaled $2.646 billion, compared to $2.563 billion in 2023[84] - Net cash provided by operating activities was $12,035 million, with Machinery, Energy & Transportation contributing $11,437 million and Financial Products contributing $1,445 million[122] - Capital expenditures excluding equipment leased to others were $1,988 million, with Machinery, Energy & Transportation accounting for $1,952 million[122] - Additions to finance receivables totaled $15,409 million, primarily driven by Financial Products with $16,845 million[122] - Dividends paid amounted to $2,646 million, with Machinery, Energy & Transportation contributing $2,646 million and Financial Products contributing $625 million[122] - Proceeds from debt issued (original maturities greater than three months) were $10,283 million, all attributed to Financial Products[122] - Cash, cash equivalents, and restricted cash at the end of the period were $6,896 million, with Machinery, Energy & Transportation holding $6,170 million and Financial Products holding $726 million[122] - Depreciation and amortization expenses were $2,153 million, with Machinery, Energy & Transportation accounting for $1,368 million and Financial Products for $785 million[122] - Net cash used for investing activities was $2,453 million, with Machinery, Energy & Transportation providing $133 million and Financial Products using $2,787 million[122] - Net cash used for financing activities was $9,565 million, with Machinery, Energy & Transportation using $11,417 million and Financial Products providing $1,206 million[122] Taxes and Tax Benefits - The company recorded a discrete tax benefit of $224 million in Q4 2024 due to a tax law change related to currency translation[29] - Effective tax rate for Q4 2024 was 14.3%, compared to 18.1% in Q4 2023, excluding discrete items[31] - The annual effective tax rate, excluding discrete items, was 22.2% for both Q4 and full-year 2024[67][69] - Tax law changes related to currency translation in 2024 resulted in a $224 million benefit[63][69] Regional Sales Performance - North America sales decreased by $532 million (14%) to $3.157 billion in Q4 2024, driven by lower sales volume and unfavorable price realization[33] - Latin America sales increased by $36 million (6%) to $623 million in Q4 2024, driven by higher sales volume[33] Financial Products Performance - Cat Financial's past dues decreased to 1.56% at the end of 2024 from 1.79% at the end of 2023, while write-offs increased to $115 million in 2024 from $65 million in 2023[49] - Interest expense of Financial Products for 2024 was $1.286 billion, compared to $1.030 billion in 2023[99][103] Assets and Liabilities - Total assets as of December 31, 2024, were $87.764 billion, slightly up from $87.476 billion in 2023[80] - Total liabilities as of December 31, 2024, were $68.270 billion, up from $67.973 billion in 2023[80] - Total assets increased to $87.764 billion, with Machinery, Energy & Transportation (ME&T) contributing $52.642 billion and Financial Products contributing $37.129 billion[109] - Current assets totaled $45.682 billion, including $6.889 billion in cash and cash equivalents and $16.827 billion in inventories[109] - Long-term receivables for finance amounted to $13.242 billion, primarily driven by Financial Products[109] - Total liabilities stood at $68.270 billion, with current liabilities accounting for $32.272 billion[109] - Shareholders' equity was reported at $19.494 billion, with profit employed in the business at $59.352 billion[109] - Cash and cash equivalents increased to $6.978 billion, with ME&T holding $6.106 billion and Financial Products holding $872 million[115] - Receivables – trade and other increased to $9.310 billion, with ME&T contributing $3.971 billion and Financial Products contributing $570 million[115] - Total current liabilities rose to $34.728 billion, driven by short-term borrowings of $4.643 billion and accounts payable of $7.906 billion[115] - Long-term debt due after one year decreased to $24.472 billion, with ME&T holding $8.626 billion and Financial Products holding $15.893 billion[115] - Shareholders' equity slightly increased to $19.503 billion, with profit employed in the business at $51.250 billion[115] Research and Development - Research and development expenses for Q4 2024 were $519 million, down from $554 million in Q4 2023[77] - Research and development expenses for 2024 were $2.107 billion, consistent with the previous year's $2.108 billion[99][103] Corporate Items and Restructuring - Corporate Items and Eliminations expense decreased by $257 million to $227 million in Q4 2024, driven by timing differences, favorable fair value adjustments, and lower restructuring costs[50] - Restructuring costs related to divestitures of non-U.S. entities in 2024 amounted to $164 million[63] - Pension/OPEB mark-to-market losses for 2024 were $154 million, impacting both Q4 and full-year results[63][69] Adjusted Financial Metrics - Adjusted profit before taxes for Q4 2024 was $3,126 million, slightly lower than the GAAP figure of $3,243 million[63] - Adjusted profit before taxes for 2024 was $13,578 million, compared to $13,373 million under GAAP[63] Consolidated Financials - Consolidated profit before taxes for 2024 was $13.373 billion, with Machinery, Energy & Transportation contributing $13.308 billion and Financial Products contributing $690 million[99] - Consolidated profit before taxes for 2023 was $13.050 billion, with Machinery, Energy & Transportation contributing $12.488 billion and Financial Products contributing $907 million[103] Sales of Machinery, Energy & Transportation - Sales of Machinery, Energy & Transportation for Q4 2024 were $15.332 billion, down from $16.237 billion in Q4 2023[77] Shareholders' Equity - Shareholders' equity was reported at $19.494 billion, with profit employed in the business at $59.352 billion[109] - Shareholders' equity slightly increased to $19.503 billion, with profit employed in the business at $51.250 billion[115] Caterpillar's Market Position - Caterpillar's total sales and revenues for 2024 were $64.8 billion, maintaining its position as a global leader in construction and mining equipment, engines, and locomotives[54] Upcoming Events - Caterpillar will host a teleconference and webcast on January 30, 2025, to discuss its Q4 and full-year 2024 results, with accompanying slides available on the company's website[56]