Caterpillar(US:CAT)2023-08-01 16:00Financial Performance - Total sales and revenues for Q2 2023 were $17.318 billion, an increase of $3.071 billion, or 22 percent, compared to $14.247 billion in Q2 2022[178]. - Operating profit margin for Q2 2023 was 21.1 percent, up from 13.6 percent in Q2 2022; adjusted operating profit margin was 21.3 percent compared to 13.8 percent[178]. - Profit per share for Q2 2023 was $5.67, a 81.1 percent increase from $3.13 in Q2 2022; adjusted profit per share was $5.55 compared to $3.18[178]. - Total sales and revenues for the six months ended June 30, 2023, were $33.180 billion, an increase of $5.344 billion, or 19 percent, from $27.836 billion for the same period in 2022[179]. - Operating profit for Q2 2023 was $3.652 billion, an increase of 88% from $1.944 billion in Q2 2022, driven by favorable price realization and higher sales volume[197]. - Consolidated sales and revenues for Q2 2023 were $17.318 billion, an increase of 22% compared to $14.247 billion in Q2 2022[200]. - Consolidated sales and revenues for the first six months of 2023 totaled $33.180 billion, a 19% increase from $27.836 billion in the same period of 2022, attributed to favorable price realization and higher sales volume[209]. - Operating profit for the six months ended June 30, 2023, was $6.383 billion, an increase of $2.584 billion, or 68%, compared to $3.799 billion for the same period in 2022[213]. Segment Performance - Construction Industries reported sales of $7.154 billion in Q2 2023, a 19% increase from $6.033 billion in Q2 2022, with profit rising 82% to $1.803 billion[201]. - Resource Industries achieved sales of $3.473 billion in Q2 2023, a 20% increase from $2.961 billion in Q2 2022, with profit up 108% to $740 million[198]. - Energy & Transportation segment sales were $5.957 billion in Q2 2023, a 28% increase from $4.640 billion in Q2 2022, with profit rising 93% to $1.269 billion[198]. - Financial Products segment revenues increased by 10% to $773 million in Q2 2023, compared to $708 million in Q2 2022[200]. - Resource Industries' total sales reached $3.563 billion in Q2 2023, a 20% increase from $2.961 billion in Q2 2022, driven by favorable price realization and higher sales volume[202]. - Energy & Transportation's total sales were $7.219 billion in Q2 2023, up 27% from $5.705 billion in Q2 2022, with increases across all applications and inter-segment sales[204]. - Financial Products' segment revenues increased to $923 million in Q2 2023, a 16% rise from $798 million in Q2 2022, primarily due to higher average financing rates[205]. - Construction Industries segment reported a profit of $3.593 billion for the six months ended June 30, 2023, a 76% increase from $2.046 billion in 2022[214]. - Energy & Transportation segment profit increased to $2.326 billion, a 94% rise from $1.197 billion in the previous year[214]. - Resource Industries segment profit was $1.504 billion, reflecting a 110% increase compared to the prior year[214]. Cash Flow and Expenses - Enterprise operating cash flow was $4.8 billion for the six months ended June 30, 2023[179]. - Consolidated operating cash flow for the first six months of 2023 was $4.82 billion, up $2.28 billion compared to the same period a year ago[231]. - Net cash provided by operating activities for Machinery, Energy & Transportation was $4.67 billion in the first six months of 2023, compared to $1.29 billion for the same period in 2022[236]. - Financial Products operating cash flow was $542 million in the first six months of 2023, compared to $735 million for the same period in 2022[240]. - The company intends to maintain a strong cash and liquidity position, with $7.39 billion of cash at the end of the second quarter of 2023, an increase of $383 million from year-end 2022[231]. - Research and development expenses for the three months ended June 30, 2023, totaled $528 million[255]. - The company expects to incur about $700 million of restructuring costs in 2023, including a pre-tax loss of approximately $586 million from the divestiture of the Longwall business[225]. Inventory and Debt - Dealer inventory increased by $600 million in Q2 2023, compared to a decrease of $400 million in Q2 2022[192]. - Dealer inventory increased by approximately $2.2 billion in the first half of 2023, compared to an increase of $900 million in the same period of 2022[209]. - Total debt as of June 30, 2023 was $37.70 billion, an increase of $706 million from year-end 2022[231]. - At June 30, 2023, consolidated net worth was $18.30 billion, exceeding the $9.00 billion required under the Credit Facility[233]. Tax and Interest - Interest expense for Q2 2023 was $127 million, up from $108 million in Q2 2022, due to higher average borrowing rates[200]. - The provision for income taxes in Q2 2023 was based on an estimated annual tax rate of 23%, slightly down from 23.5% in Q2 2022[200]. - The company recorded a discrete tax benefit of $88 million in Q2 2023, compared to a benefit of $55 million in Q2 2022[200]. - The estimated annual tax rate for the six months ended June 30, 2023, was 23%, slightly lower than 23.5% in the same period of 2022[215]. Future Outlook - For full-year 2023, the company expects a strong top line supported by price realization and higher sales of equipment to end users[185]. - The company anticipates higher SG&A and R&D expenses throughout 2023 due to investments in strategic initiatives[185]. - The energy transition is expected to support increased commodity demand, expanding the total addressable market and providing long-term growth opportunities[184]. - The company anticipates potential impacts from global economic conditions and commodity price fluctuations on future performance[276].