On October 31, 2023, Caterpillar Inc (CAT, Financial) released its third-quarter earnings report for 2023. The company reported a 12% increase in sales and revenues, which stood at $16.8 billion, compared to $15.0 billion in the third quarter of 2022. This increase was primarily due to favorable price realization and higher sales volume.
Financial Highlights
The company's profit per share for the third quarter of 2023 was $5.45, compared to $3.87 in the third quarter of 2022. The adjusted profit per share for Q3 2023 was $5.52, compared to $3.95 in Q3 2022. The company also returned $1.0 billion to shareholders through dividends and share repurchases in the quarter.
Operating profit margin for the third quarter of 2023 was 20.5%, compared to 16.2% in the third quarter of 2022. The adjusted operating profit margin for Q3 2023 was 20.8%, compared to 16.5% in Q3 2022.
Performance Analysis
For the nine months ended September 30, 2023, the company's enterprise operating cash flow was $8.9 billion. The company ended the third quarter with $6.5 billion of enterprise cash. In the quarter, the company paid dividends of $0.7 billion and repurchased $0.4 billion of Caterpillar common stock.
According to Chairman and CEO Jim Umpleby, the company's strong performance in the third quarter was demonstrated by double-digit top-line growth, strong adjusted operating profit margin, and robust ME&T free cash flow.
Segment Performance
Construction Industries' total sales were $6.999 billion in the third quarter of 2023, an increase of 12% compared to the third quarter of 2022. Resource Industries' total sales were $3.351 billion in the third quarter of 2023, an increase of 9% compared to the third quarter of 2022. Energy & Transportation's total sales were $6.859 billion in the third quarter of 2023, an increase of 11% compared to the third quarter of 2022.
Financial Products' segment revenues were $979 million in the third quarter of 2023, an increase of 20% compared to the third quarter of 2022. However, the segment's profit was $203 million in the third quarter of 2023, a decrease of 8% compared to the third quarter of 2022.
Caterpillar Inc (CAT, Financial) continues to focus on supporting its customers' success and executing its strategy for long-term profitable growth.
Explore the complete 8-K earnings release (here) from Caterpillar Inc for further details.
