Caterpillar Reports First-Quarter 2021 Results

DEERFIELD, Ill., April 29, 2021 /PRNewswire/ --  

  • Sales and revenues increased 12%
  • First-quarter 2021 profit per share of $2.77; adjusted profit per share of $2.87
  • Strong balance sheet with $11.3 billion of enterprise cash on hand

 





First Quarter

($ in billions except profit per share)



2021

2020

Sales and Revenues



$11.9

$10.6

Profit Per Share



$2.77

$1.98

Adjusted Profit Per Share



$2.87

$1.65

Caterpillar Inc. CAT today announced first-quarter 2021 sales and revenues of $11.9 billion, a 12% increase compared with $10.6 billion in the first quarter of 2020. The increase was due to higher sales volume driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased their inventories more during the first quarter of 2021 than during the first quarter of 2020.

Operating profit margin was 15.3% for the first quarter of 2021, compared with 13.2% for the first quarter of 2020. First-quarter 2021 profit per share was $2.77, compared with $1.98 profit per share in the first quarter of 2020. Adjusted profit per share in the first quarter of 2021 was $2.87, compared with first-quarter 2020 adjusted profit per share of $1.65. Adjusted profit per share for both quarters excluded restructuring costs, while the first quarter of 2020 also excluded a remeasurement gain of $0.38 per share resulting from the settlement of a non-U.S. pension obligation. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 12.

For the three months ended March 31, 2021, enterprise operating cash flow was $1.9 billion. Caterpillar ended the first quarter with $11.3 billion of enterprise cash.

"I'm proud of our global team's strong performance as they continue to serve our customers," said Caterpillar Chairman and CEO Jim Umpleby. "We're encouraged by improving conditions in our end markets and are proactively managing supply chain risks. Our dedicated team continues to execute our strategy for long-term profitable growth."

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison 

First Quarter 2021 vs. First Quarter 2020

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx  for the downloadable version of Caterpillar first-quarter 2021 earnings. 

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2020 (at left) and the first 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 first quarter of 2021 were $11.887 billion, an increase of $1.252 billion, or 12%, compared with $10.635 billion in the first quarter of 2020. The increase was primarily due to higher sales volume and favorable currency impacts related to the euro and the Australian dollar. The increase in sales volume was driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased inventories by $700 million during the first quarter of 2021 compared to $100 million during the first quarter of 2020.

Sales were higher across the three primary segments. Sales increased in Asia/Pacific, Latin America and EAME while sales in North America were about flat.

Sales and Revenues by Segment

(Millions of dollars)

First

Quarter

2020



Sales

Volume



Price

Realization



Currency



Inter-

Segment /

Other



First

Quarter

2021



$

Change



%

Change

































Construction Industries

$

4,306





$

1,006





$

(23)





$

146





$

24





$

5,459





$

1,153





27%

Resource Industries

2,084





132





(47)





33





14





2,216





132





6%

Energy & Transportation

4,349





(41)





7





74





118





4,507





158





4%

All Other Segment

109





9









1





11





130





21





19%

Corporate Items and Eliminations

(934)





(19)





(1)









(167)





(1,121)





(187)







Machinery, Energy & Transportation

9,914





1,087





(64)





254









11,191





1,277





13%

































Financial Products Segment

814

















(53)





761





(53)





(7%)

Corporate Items and Eliminations

(93)

















28





(65)





28







Financial Products Revenues

721

















(25)





696





(25)





(3%)

































Consolidated Sales and Revenues

$

10,635





$

1,087





$

(64)





$

254





$

(25)





$

11,887





$

1,252





12%

































 

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

First Quarter 2021























































Construction Industries

$

2,126





2%



$

392





48%



$

1,081





22%



$

1,842





72%



$

5,441





26%



$

18





400%



$

5,459





27%

Resource Industries

657





(6%)



405





27%



474





20%



561





(1%)



2,097





6%



119





13%



2,216





6%

Energy & Transportation

1,782





3%



256





3%



1,093





4%



527





(9%)



3,658





1%



849





16%



4,507





4%

All Other Segment

13





160%







(100%)



3





(73%)



22





120%



38





36%



92





14%



130





19%

Corporate Items and Eliminations

(39)

























(4)









(43)









(1,078)









(1,121)







Machinery, Energy & Transportation

4,539





1%



1,053





26%



2,651





13%



2,948





32%



11,191





13%







—%



11,191





13%

























































Financial Products Segment

476





(9%)



62





(11%)



100





(2%)



123





5%



761





(7%)







—%



761





(7%)

Corporate Items and Eliminations

(24)









(11)









(8)









(22)









(65)

















(65)







Financial Products Revenues

452





(4%)



51





(12%)



92





(1%)



101





2%



696





(3%)







—%



696





(3%)

























































Consolidated Sales and Revenues

$

4,991





—%



$

1,104





24%



$

2,743





13%



$

3,049





31%



$

11,887





12%



$





—%



$

11,887





12%

























































First Quarter 2020























































Construction Industries

$

2,085









$

265









$

889









$

1,073









$

4,312









$

(6)









$

4,306







Resource Industries

696









320









395









568









1,979









105









2,084







Energy & Transportation

1,738









249









1,053









578









3,618









731









4,349







All Other Segment

5









2









11









10









28









81









109







Corporate Items and Eliminations

(15)









(2)









(4)









(2)









(23)









(911)









(934)







Machinery, Energy & Transportation

4,509









834









2,344









2,227









9,914

















9,914































































Financial Products Segment

525









70









102









117









814

















814







Corporate Items and Eliminations

(54)









(12)









(9)









(18)









(93)

















(93)







Financial Products Revenues

471









58









93









99









721

















721































































Consolidated Sales and Revenues

$

4,980









$

892









$

2,437









$

2,326









$

10,635









$









$

10,635































































Consolidated Operating Profit

Consolidated Operating Profit Comparison 

First Quarter 2021 vs. First Quarter 2020

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx  for the downloadable version of Caterpillar first-quarter 2021 earnings.

The chart above graphically illustrates reasons for the change in consolidated operating profit between the first quarter of 2020 (at left) and the first 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 first quarter of 2021 was $1.814 billion, an increase of $410 million, or 29%, compared with $1.404 billion in the first quarter of 2020. The increase was primarily due to higher sales volume and higher profit from Financial Products, partially offset by higher selling, general and administrative (SG&A) and research and development (R&D) expenses, unfavorable price realization and higher manufacturing costs.

The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense, which was reinstated in 2021. Unfavorable manufacturing costs were driven by higher short-term incentive compensation expense, partially offset by favorable material costs and lower warranty expense.

Profit (Loss) by Segment

(Millions of dollars)

First Quarter

2021



First Quarter

2020



$

Change



%

 Change

Construction Industries

$

1,035





$

640





$

395





62%

Resource Industries

328





304





24





8%

Energy & Transportation

666





602





64





11%

All Other Segment

3





7





(4)





(57%)

Corporate Items and Eliminations

(368)





(212)





(156)







Machinery, Energy & Transportation

1,664





1,341





323





24%

















Financial Products Segment

244





105





139





132%

Corporate Items and Eliminations

(19)





47





(66)







Financial Products

225





152





73





48%

















Consolidating Adjustments

(75)





(89)





14























Consolidated Operating Profit

$

1,814





$

1,404





$

410





29%

















Other Profit/Loss and Tax Items

  • Other income (expense) in the first quarter of 2021 was income of $325 million, compared with income of $222 million in the first quarter of 2020. The change was due to the absence of a remeasurement gain resulting from the settlement of a non-U.S. pension obligation that occurred in the first quarter of 2020, which was more than offset by the favorable impacts from foreign currency exchange gains (losses), unrealized gains (losses) on marketable securities at Insurance Services, gains (losses) on commodity hedges and favorable pension and other postemployment benefit (OPEB) plan costs.



    The company experienced foreign currency exchange net gains in the first quarter of 2021 across several currencies, compared with net losses in the first quarter of 2020. The favorable impact of unrealized gains (losses) on marketable securities was due to unrealized losses in the first quarter of 2020, compared with unrealized gains in the first quarter of 2021. The company experienced net losses in commodity hedges in the first quarter of 2020, compared with net gains in the first quarter of 2021. 



  • The provision for income taxes for the first quarter of 2021 reflected a lower estimated annual tax rate of 26%, compared with 31% for the first 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 is primarily related to changes in the expected geographic mix of profits from a tax perspective for 2021.



    In addition, a discrete tax benefit of $43 million was recorded in the first quarter of 2021, compared with an $8 million benefit in the first quarter of 2020, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. A $43 million tax charge was also recorded in the first quarter of 2020 related to the $254 million remeasurement gain resulting from the settlement of a non-U.S. pension obligation.

 

CONSTRUCTION INDUSTRIES

(Millions of dollars)

































Segment Sales

































First Quarter

2020



Sales

Volume



Price

Realization



Currency



Inter-

Segment



First Quarter

2021



$

 Change



%

 Change

Total Sales



$

4,306





$

1,006





$

(23)





$

146





$

24





$

5,459





$

1,153





27%



































Sales by Geographic Region





















First Quarter

2021



First Quarter

2020



$

Change



%

Change

















North America



$

2,126





$

2,085





$

41





2%



















Latin America



392





265





127





48%



















EAME



1,081





889





192





22%



















Asia/Pacific



1,842





1,073





769





72%



















External Sales



5,441





4,312





1,129





26%



















Inter-segment



18





(6)





24





400%



















Total Sales



$

5,459





$

4,306





$

1,153





27%





















































Segment Profit





















First Quarter

2021



First Quarter

2020



 

Change



%

Change

















Segment Profit



$

1,035





$

640





$

395





62%



















Segment Profit Margin



19.0%





14.9%





4.1 pts

























































































































Construction Industries' total sales were $5.459 billion in the first quarter of 2021, an increase of $1.153 billion, or 27%, compared with $4.306 billion in the first quarter of 2020. The increase was due to higher sales volume driven by higher end-user demand and the impact from changes in dealer inventories. Overall, dealers increased inventories more during the first quarter of 2021 than during the first quarter of 2020.

  • In North America, sales increased slightly due to higher end-user demand partially offset by the impact from changes in dealer inventories and unfavorable price realization. The higher end-user demand was driven primarily by residential construction. Dealers increased inventories more during the first quarter of 2020 than during the first quarter of 2021.
  • Sales increased in Latin America mostly due to higher sales volume driven by higher end-user demand across the region and the impact of changes in dealer inventories, partially offset by unfavorable currency impacts from a weaker Brazilian real. Dealers decreased inventories during the first quarter of 2020, compared with an increase during the first quarter of 2021.
  • In EAME, sales increased due to higher sales volume and favorable currency impacts 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 more during the first quarter of 2021 than during the first quarter of 2020.
  • Sales increased in Asia/Pacific primarily due to higher sales volume and favorable currency impacts from a stronger Chinese yuan. The increase in sales was primarily due to higher end-user demand across the region driven mainly by China, reflecting the impact of the pandemic in the first quarter of 2020, and the impact from changes in dealer inventories. Dealers increased inventories during the first quarter of 2021, compared with a decrease during the first quarter of 2020 due to the timing of Chinese New Year.

Construction Industries' profit was $1.035 billion in the first quarter of 2021, an increase of $395 million, or 62%, compared with $640 million in the first quarter of 2020. The increase was mainly due to higher sales volume.

RESOURCE INDUSTRIES

(Millions of dollars)

































Segment Sales

































First Quarter

2020



Sales

Volume



Price

Realization



Currency



Inter-

Segment



First Quarter

2021



$

 Change



%

 Change

Total Sales



$

2,084





$

132





$

(47)





$

33





$

14





$

2,216





$

132





6%



































Sales by Geographic Region





















First Quarter

2021



First Quarter

2020



$

Change



%

Change

















North America



$

657





$

696





$

(39)





(6%)



















Latin America



405





320





85





27%



















EAME



474





395





79





20%



















Asia/Pacific



561





568





(7)





(1%)



















External Sales



2,097





1,979





118





6%



















Inter-segment



119





105





14





13%



















Total Sales



$

2,216





$

2,084





$

132





6%





















































Segment Profit





















First Quarter

2021



First Quarter

2020



 

Change



%

Change

















Segment Profit



$

328





$

304





$

24





8%



















Segment Profit Margin



14.8%





14.6%





0.2 pts

























































































































Resource Industries' total sales were $2.216 billion in the first quarter of 2021, an increase of $132 million, or 6%, compared with $2.084 billion in the first quarter of 2020. The increase was due to higher sales volume driven by the impacts of changes in dealer inventories, higher end-user demand for equipment and aftermarket parts and favorable currency impact from the Australian dollar, partially offset by unfavorable price realization. Dealers decreased inventories during the first quarter of 2020, compared to remaining about flat during the first quarter of 2021. End-user demand was higher in mining, offset by lower end-user demand in heavy construction and quarry and aggregates.

Resource Industries' profit was $328 million in the first quarter of 2021, an increase of $24 million, or 8%, compared with $304 million in the first quarter of 2020. The increase was mainly due to favorable manufacturing costs and higher sales volume, partially offset by unfavorable price realization and higher SG&A/R&D expenses. Favorable manufacturing costs reflected favorable cost absorption, lower warranty expense and favorable variable labor and burden. Cost absorption was favorable as company inventory increased more in the first quarter of 2021 than in the first quarter of 2020. The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense, partially offset by other cost-reduction actions.

ENERGY & TRANSPORTATION

(Millions of dollars)

































Segment Sales

































First Quarter

2020



Sales

Volume



Price

Realization



Currency



Inter-

Segment



First Quarter

2021



$

 Change



%

 Change

Total Sales



$

4,349





$

(41)





$

7





$

74





$

118





$

4,507





$

158





4%



































Sales by Application





















First Quarter

2021



First Quarter

2020



$

Change



%

Change

















Oil and Gas



$

915





$

861





$

54





6%



















Power Generation



963





854





109





13%



















Industrial



813





801





12





1%



















Transportation



967





1,102





(135)





(12%)



















External Sales



3,658





3,618





40





1%



















Inter-segment



849





731





118





16%



















Total Sales



$

4,507





$

4,349





$

158





4%





















































Segment Profit





















First Quarter

2021



First Quarter

2020



 

Change



%

Change

















Segment Profit



$

666





$

602





$

64





11%



















Segment Profit Margin



14.8%





13.8%





1.0 pts

























































































































Energy & Transportation's total sales were $4.507 billion in the first quarter of 2021, an increase of $158 million, or 4%, compared with $4.349 billion in the first quarter of 2020. Sales growth was driven by Power Generation and Oil and Gas, partially offset by a decrease in Transportation. Inter-segment sales also increased.

  • Oil and Gas – Sales increased mainly due to higher sales of reciprocating engine aftermarket parts primarily driven by North America and EAME.
  • Power Generation – Sales increased due to turbines, turbine-related services and large reciprocating engine applications, including data centers.
  • Industrial – Sales were about flat.
  • Transportation – Sales declined in rail due to lower deliveries of locomotives and related services, primarily in North America, and in marine.

Energy & Transportation's profit was $666 million in the first quarter of 2021, an increase of $64 million, or 11%, compared with $602 million in the first quarter of 2020. The increase was due to higher sales volume including inter-segment sales and favorable variable manufacturing costs, partially offset by higher SG&A/R&D expenses. Favorable variable manufacturing costs reflected lower material costs and variable labor and burden. The increase in SG&A/R&D expenses was driven by higher short-term compensation expense, partially offset by other cost reduction actions. 

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

































Revenues by Geographic Region





















First Quarter

2021



First Quarter

2020



$

Change



%

Change

















North America



$

476





$

525





$

(49)





(9%)



















Latin America



62





70





(8)





(11%)



















EAME



100





102





(2)





(2%)



















Asia/Pacific



123





117





6





5%



















Total Revenues



$

761





$

814





$

(53)





(7%)





















































Segment Profit





















First Quarter

2021



First Quarter

2020



 

Change



%

Change

















Segment Profit



$

244





$

105





$

139





132%





















































Financial Products' segment revenues were $761 million in the first quarter of 2021, a decrease of $53 million, or 7%, from the first quarter of 2020. The decrease was primarily because of lower average financing rates and lower average earning assets in North America.

Financial Products' segment profit was $244 million in the first quarter of 2021, compared with $105 million in the first quarter of 2020. The increase was primarily due to a favorable impact from equity securities in Insurance Services and lower provision for credit losses at Cat Financial, partially offset by an increase in SG&A expenses primarily due to higher incentive compensation. The impact of lower average financing rates was offset by lower interest expense.

At the end of the first quarter of 2021, past dues at Cat Financial were 2.90%, compared with 4.13% at the end of the first quarter of 2020. Past dues decreased across all portfolio segments as global markets generally improved. Write-offs, net of recoveries, were $24 million for the first quarter of 2021, compared with $30 million for the first quarter of 2020.  As of March 31, 2021, Cat Financial's allowance for credit losses totaled $441 million, or 1.64% of finance receivables, compared with $479 million, or 1.77% of finance receivables at December 31, 2020.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $387 million in the first quarter of 2021, an increase of $222 million from the first quarter of 2020, primarily due to an unfavorable change in fair value adjustments related to deferred compensation plans and segment reporting methodology differences.

Notes

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

ii.  End-user demand is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Thursday, April 29, 2021.

iii.  Information on non-GAAP financial measures is included in the appendix on page 12.

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

v.  Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Thursday, April 29, 2021, to discuss its 2021 first-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)

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) a remeasurement gain resulting from the settlement of a non-U.S. pension obligation in the first quarter of 2020 and (ii) restructuring costs, which were incurred to generate longer-term benefits. 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 March 31, 2021 - US GAAP



$

1,814





15.3%





$

1,997





$

475





23.8%





$

1,530





$

2.77



Restructuring costs



64





0.5%





64





10





15.0%





54





$

0.10



Three Months Ended March 31, 2021 - Adjusted



$

1,878





15.8%





$

2,061





$

485





23.5%





$

1,584





$

2.87

































Three Months Ended March 31, 2020 - US GAAP



$

1,404





13.2%





$

1,513





$

425





28.1%





$

1,092





$

1.98



Remeasurement gain of a non-U.S. pension obligation







—%





(254)





(43)





17.0%





(211)





$

(0.38)



Restructuring costs



37





0.3%





37





7





19.0%





30





$

0.05



Three Months Ended March 31, 2020 - Adjusted



$

1,441





13.5%





$

1,296





$

389





30.0%





$

911





$

1.65

































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 14 to 22 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

March 31,



2021



2020

Sales and revenues:







Sales of Machinery, Energy & Transportation

$

11,191





$

9,914



Revenues of Financial Products

696





721



Total sales and revenues

11,887





10,635











Operating costs:







Cost of goods sold

8,012





7,266



Selling, general and administrative expenses

1,239





1,121



Research and development expenses

374





356



Interest expense of Financial Products

125





175



Other operating (income) expenses

323





313



Total operating costs

10,073





9,231











Operating profit

1,814





1,404











Interest expense excluding Financial Products

142





113



Other income (expense)

325





222











Consolidated profit before taxes

1,997





1,513











Provision (benefit) for income taxes

475





425



Profit of consolidated companies

1,522





1,088











Equity in profit (loss) of unconsolidated affiliated companies

9





5











Profit of consolidated and affiliated companies

1,531





1,093











Less: Profit (loss) attributable to noncontrolling interests

1





1











Profit 1

$

1,530





$

1,092



















Profit per common share

$

2.80





$

2.00



Profit per common share — diluted 2

$

2.77





$

1.98











Weighted-average common shares outstanding (millions)







– Basic

546.4





546.8



– Diluted 2

551.4





551.1







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)





March 31,

2021



December 31,

2020

Assets







Current assets:







Cash and short-term investments

$

11,342





$

9,352



Receivables – trade and other

7,955





7,317



Receivables – finance

9,333





9,463



Prepaid expenses and other current assets

1,802





1,930



Inventories

12,149





11,402



Total current assets

42,581





39,464











Property, plant and equipment – net

12,132





12,401



Long-term receivables – trade and other

1,115





1,185



Long-term receivables – finance

11,966





12,222



Noncurrent deferred and refundable income taxes

1,391





1,523



Intangible assets

1,246





1,308



Goodwill

6,343





6,394



Other assets

3,955





3,827



Total assets

$

80,729





$

78,324











Liabilities







Current liabilities:







Short-term borrowings:







-- Machinery, Energy & Transportation

$





$

10



-- Financial Products

3,625





2,005



Accounts payable

6,694





6,128



Accrued expenses

3,574





3,642



Accrued wages, salaries and employee benefits

1,283





1,096



Customer advances

1,168





1,108



Dividends payable





562



Other current liabilities

2,035





2,017



Long-term debt due within one year:







-- Machinery, Energy & Transportation

1,301





1,420



-- Financial Products

6,898





7,729



Total current liabilities

26,578





25,717











Long-term debt due after one year:







-- Machinery, Energy & Transportation

9,751





9,749



-- Financial Products

16,605





16,250



Liability for postemployment benefits

6,698





6,872



Other liabilities

4,480





4,358



Total liabilities

64,112





62,946











Shareholders' equity







Common stock

6,215





6,230



Treasury stock

(25,049)





(25,178)



Profit employed in the business

36,697





35,167



Accumulated other comprehensive income (loss)

(1,290)





(888)



Noncontrolling interests

44





47



Total shareholders' equity

16,617





15,378



Total liabilities and shareholders' equity

$

80,729





$

78,324



 

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)





Three Months Ended

March 31,



2021



2020

Cash flow from operating activities:







Profit of consolidated and affiliated companies

$

1,531





$

1,093



Adjustments for non-cash items:







Depreciation and amortization

586





614



Gain on remeasurement of a non-U.S. pension obligation





(254)



Provision (benefit) for deferred income taxes

109





20



Other

(104)





534



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







Receivables – trade and other

(543)





500



Inventories

(657)





(541)



Accounts payable

733





90



Accrued expenses

84





(97)



Accrued wages, salaries and employee benefits

191





(722)



Customer advances

58





116



Other assets – net

56





(50)



Other liabilities – net

(116)





(173)



Net cash provided by (used for) operating activities

1,928





1,130



Cash flow from investing activities:







Capital expenditures – excluding equipment leased to others

(252)





(305)



Expenditures for equipment leased to others

(252)





(243)



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

309





216



Additions to finance receivables

(2,629)





(2,953)



Collections of finance receivables

2,770





3,153



Proceeds from sale of finance receivables

5





31



Investments and acquisitions (net of cash acquired)

(386)





(35)



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

28







Proceeds from sale of securities

126





68



Investments in securities

(148)





(180)



Other – net

(48)





35



Net cash provided by (used for) investing activities

(477)





(213)



Cash flow from financing activities:







Dividends paid

(562)





(567)



Common stock issued, including treasury shares reissued

65





(23)



Common shares repurchased





(1,043)



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

2,273





2,141



Payments on debt (original maturities greater than three months)

(2,887)





(2,466)



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

1,659





(40)



Other – net

(2)





(1)



Net cash provided by (used for) financing activities

546





(1,999)



Effect of exchange rate changes on cash

(12)





(80)



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

1,985





(1,162)



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

$

11,351





$

7,130





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 March 31, 2021

(Unaudited)

(Millions of dollars)









Supplemental Consolidating Data





Consolidated



Machinery,

Energy &

Transportation



Financial

Products



Consolidating

Adjustments



Sales and revenues:

















Sales of Machinery, Energy & Transportation

$

11,191





$

11,191





$





$





Revenues of Financial Products

696









788





(92)



1

Total sales and revenues

11,887





11,191





788





(92)























Operating costs:

















Cost of goods sold

8,012





8,013









(1)



2

Selling, general and administrative expenses

1,239





1,114





124





1



2

Research and development expenses

374





374













Interest expense of Financial Products

125









125









Other operating (income) expenses

323





26





314





(17)



2

Total operating costs

10,073





9,527





563





(17)























Operating profit

1,814





1,664





225





(75)























Interest expense excluding Financial Products

142





142













Other income (expense)

325





231





19





75



3



















Consolidated profit before taxes

1,997





1,753





244



























Provision (benefit) for income taxes

475





412





63









Profit of consolidated companies

1,522





1,341





181



























Equity in profit (loss) of unconsolidated affiliated companies

9





12









(3)



4



















Profit of consolidated and affiliated companies

1,531





1,353





181





(3)























Less: Profit (loss) attributable to noncontrolling interests

1





1





3





(3)



5



















Profit 6

$

1,530





$

1,352





$

178





$







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 March 31, 2020

(Unaudited)

(Millions of dollars)









Supplemental Consolidating Data





Consolidated



Machinery,

Energy &

Transportation



Financial

Products



Consolidating

Adjustments



Sales and revenues:

















Sales of Machinery, Energy & Transportation

$

9,914





$

9,914





$





$





Revenues of Financial Products

721









830





(109)



1

Total sales and revenues

10,635





9,914





830





(109)























Operating costs:

















Cost of goods sold

7,266





7,267









(1)



2

Selling, general and administrative expenses

1,121





940





182





(1)



2

Research and development expenses

356





356













Interest expense of Financial Products

175









176





(1)



3

Other operating (income) expenses

313





10





320





(17)



2

Total operating costs

9,231





8,573





678





(20)























Operating profit

1,404





1,341





152





(89)























Interest expense excluding Financial Products

113





112









1



3

Other income (expense)

222





179





(47)





90



4



















Consolidated profit before taxes

1,513





1,408





105



























Provision (benefit) for income taxes

425





397





28









Profit of consolidated companies

1,088





1,011





77



























Equity in profit (loss) of unconsolidated affiliated companies

5





9









(4)



5



















Profit of consolidated and affiliated companies

1,093





1,020





77





(4)























Less: Profit (loss) attributable to noncontrolling interests

1





1





4





(4)



6



















Profit 7

$

1,092





$

1,019





$

73





$







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 March 31, 2021

(Unaudited)

(Millions of dollars)









Supplemental Consolidating Data





Consolidated



Machinery,

Energy &

Transportation



Financial

Products



Consolidating

Adjustments



Assets

















Current assets:

















Cash and short-term investments

$

11,342





$

10,492





$

850





$





Receivables – trade and other

7,955





3,020





501





4,434



1,2

Receivables – finance

9,333









13,896





(4,563)



2

Prepaid expenses and other current assets

1,802





1,399





544





(141)



3

Inventories

12,149





12,149













Total current assets

42,581





27,060





15,791





(270)























Property, plant and equipment – net

12,132





8,185





3,947









Long-term receivables – trade and other

1,115





333





169





613



1,2

Long-term receivables – finance

11,966









12,604





(638)



2

Noncurrent deferred and refundable income taxes

1,391





1,933





103





(645)



4

Intangible assets

1,246





1,246













Goodwill

6,343





6,343













Other assets

3,955





3,260





1,899





(1,204)



5

Total assets

$

80,729





$

48,360





$

34,513





$

(2,144)























Liabilities

















Current liabilities:

















Short-term borrowings

$

3,625





$





$

3,625





$





Short-term borrowings with consolidated companies

















Accounts payable

6,694





6,597





226





(129)



6

Accrued expenses

3,574





3,174





400









Accrued wages, salaries and employee benefits

1,283





1,256





27









Customer advances

1,168





1,168













Dividends payable

















Other current liabilities

2,035





1,558





640





(163)



4,7

Long-term debt due within one year

8,199





1,301





6,898









Total current liabilities

26,578





15,054





11,816





(292)























Long-term debt due after one year

26,356





9,776





16,605





(25)



8

Liability for postemployment benefits

6,698





6,697





1









Other liabilities

4,480





3,804





1,394





(718)



4

Total liabilities

64,112





35,331





29,816





(1,035)























Shareholders' equity

















Common stock

6,215





6,215





919





(919)



9

Treasury stock

(25,049)





(25,049)













Profit employed in the business

36,697





32,443





4,243





11



9

Accumulated other comprehensive income (loss)

(1,290)





(627)





(663)









Noncontrolling interests

44





47





198





(201)



9

Total shareholders' equity

16,617





13,029





4,697





(1,109)





Total liabilities and shareholders' equity

$

80,729





$

48,360





$

34,513





$

(2,144)







1

Elimination of receivables between ME&T and Financial Products.

2

Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.

3

Elimination of ME&T's insurance premiums that are prepaid to Financial Products.

4

Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5

Elimination of other intercompany assets between ME&T and Financial Products.

6

Elimination of payables between ME&T and Financial Products.

7

Elimination of prepaid insurance in Financial Products' other liabilities.

8

Elimination of debt between ME&T and Financial Products.

9

Eliminations associated with ME&T's investments in Financial Products' subsidiaries.



 

Caterpillar Inc.

Supplemental Data for Financial Position

At December 31, 2020

(Unaudited)

(Millions of dollars)









Supplemental Consolidating Data





Consolidated



Machinery,

Energy &

Transportation



Financial

Products



Consolidating

Adjustments



Assets

















Current assets:

















Cash and short-term investments

$

9,352





$

8,822





$

530





$





Receivables – trade and other

7,317





3,846





397





3,074



1,2

Receivables – finance

9,463









13,681





(4,218)



2

Prepaid expenses and other current assets

1,930





1,376





624





(70)



3

Inventories

11,402





11,402













Total current assets

39,464





25,446





15,232





(1,214)























Property, plant and equipment – net

12,401





8,309





4,092









Long-term receivables – trade and other

1,185





363





164





658



1,2

Long-term receivables – finance

12,222









12,895





(673)



2

Noncurrent deferred and refundable income taxes

1,523





2,058





110





(645)



4

Intangible assets

1,308





1,308













Goodwill

6,394





6,394













Other assets

3,827





3,158





1,871





(1,202)



5

Total assets

$

78,324





$

47,036





$

34,364





$

(3,076)























Liabilities

















Current liabilities:

















Short-term borrowings

$

2,015





$

10





$

2,005





$





Short-term borrowings with consolidated companies









1,000





(1,000)



6

Accounts payable

6,128





6,060





212





(144)



7

Accrued expenses

3,642





3,099





543









Accrued wages, salaries and employee benefits

1,096





1,081





15









Customer advances

1,108





1,108













Dividends payable

562





562













Other current liabilities

2,017





1,530





580





(93)



4,8

Long-term debt due within one year

9,149





1,420





7,729









Total current liabilities

25,717





14,870





12,084





(1,237)























Long-term debt due after one year

25,999





9,764





16,250





(15)



6

Liability for postemployment benefits

6,872





6,872













Other liabilities

4,358





3,691





1,385





(718)



4

Total liabilities

62,946





35,197





29,719





(1,970)























Shareholders' equity

















Common stock

6,230





6,230





919





(919)



9

Treasury stock

(25,178)





(25,178)













Profit employed in the business

35,167





31,091





4,065





11



9

Accumulated other comprehensive income (loss)

(888)





(352)





(536)









Noncontrolling interests

47





48





197





(198)



9

Total shareholders' equity

15,378





11,839





4,645





(1,106)





Total liabilities and shareholders' equity

$

78,324





$

47,036





$

34,364





$

(3,076)







1

Elimination of receivables between ME&T and Financial Products.

2

Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.

3

Elimination of ME&T's insurance premiums that are prepaid to Financial Products.

4

Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5

Elimination of other intercompany assets between ME&T and Financial Products.

6

Elimination of debt between ME&T and Financial Products.

7

Elimination of payables between ME&T and Financial Products.

8

Elimination of prepaid insurance in Financial Products' other liabilities.

9

Eliminations associated with ME&T's investments in Financial Products' subsidiaries.



 

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Three Months Ended March 31, 2021

(Unaudited)

(Millions of dollars)









Supplemental Consolidating Data





Consolidated



Machinery,

Energy &

Transportation



Financial

Products



Consolidating

Adjustments



Cash flow from operating activities:

















Profit of consolidated and affiliated companies

$

1,531





$

1,353





$

181





$

(3)



1

Adjustments for non-cash items:

















Depreciation and amortization

586





383





203









Provision (benefit) for deferred income taxes

109





127





(18)









Other

(104)





(52)





(83)





31



2

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

















Receivables – trade and other

(543)





(104)





(32)





(407)



2, 3

Inventories

(657)





(657)













Accounts payable

733





706





13





14



2

Accrued expenses

84





58





26









Accrued wages, salaries and employee benefits

191





179





12









Customer advances

58





58













Other assets – net

56





(4)





(12)





72



2

Other liabilities – net

(116)





(131)





79





(64)



2

Net cash provided by (used for) operating activities

1,928





1,916





369





(357)





Cash flow from investing activities:

















Capital expenditures – excluding equipment leased to others

(252)





(251)





(4)





3



2

Expenditures for equipment leased to others

(252)





(4)





(249)





1



2

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

309





27





286





(4)



2

Additions to finance receivables

(2,629)









(2,867)





238



3

Collections of finance receivables

2,770









3,062





(292)



3

Net intercompany purchased receivables









(411)





411



3

Proceeds from sale of finance receivables

5









5









Net intercompany borrowings





1,000









(1,000)



4

Investments and acquisitions (net of cash acquired)

(386)





(386)













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

28





28













Proceeds from sale of securities

126





11





115









Investments in securities

(148)









(148)









Other – net

(48)





2





(50)









Net cash provided by (used for) investing activities

(477)





427





(261)





(643)





Cash flow from financing activities:

















Dividends paid

(562)





(562)













Common stock issued, including treasury shares reissued

65





65













Net intercompany borrowings









(1,000)





1,000



4

Proceeds from debt issued > 90 days

2,273





494





1,779









Payments on debt > 90 days

(2,887)





(644)





(2,243)









Short-term borrowings – net < 90 days

1,659





(10)





1,669









Other – net

(2)





(2)













Net cash provided by (used for) financing activities

546





(659)





205





1,000





Effect of exchange rate changes on cash

(12)





(14)





2









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

1,985





1,670





315









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

9,366





8,822





544









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

$

11,351





$

10,492





$

859





$







1

Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.

2

Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

3

Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.

4

Elimination of net proceeds and payments to/from ME&T and Financial Products.

 

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Three Months Ended March 31, 2020

(Unaudited)

(Millions of dollars)









Supplemental Consolidating Data





Consolidated



Machinery,

Energy &

Transportation



Financial

Products



Consolidating

Adjustments



Cash flow from operating activities:

















Profit of consolidated and affiliated companies

$

1,093





$

1,020





$

77





$

(4)



1

Adjustments for non-cash items:

















Depreciation and amortization

614





402





212









Gain on remeasurement of a non-U.S. pension obligation

(254)





(254)













Provision (benefit) for deferred income taxes

20





75





(55)









Other

534





245





170





119



2

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

















Receivables – trade and other

500





328





(56)





228



2, 3

Inventories

(541)





(538)









(3)



2

Accounts payable

90





2





51





37



2

Accrued expenses

(97)





(105)





8









Accrued wages, salaries and employee benefits

(722)





(689)





(33)









Customer advances

116





116













Other assets – net

(50)





15





(16)





(49)



2

Other liabilities – net

(173)





(299)





73





53



2

Net cash provided by (used for) operating activities

1,130





318





431





381





Cash flow from investing activities:

















Capital expenditures – excluding equipment leased to others

(305)





(304)





(1)









Expenditures for equipment leased to others

(243)





2





(249)





4



2

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

216





61





156





(1)



2

Additions to finance receivables

(2,953)









(3,213)





260



3

Collections of finance receivables

3,153









3,421





(268)



3

Net intercompany purchased receivables









376





(376)



3

Proceeds from sale of finance receivables

31









31









Net intercompany borrowings





599





1





(600)



4

Investments and acquisitions (net of cash acquired)

(35)





(35)













Proceeds from sale of securities

68





6





62









Investments in securities

(180)





(5)





(175)









Other – net

35









35









Net cash provided by (used for) investing activities

(213)





324





444





(981)





Cash flow from financing activities:

















Dividends paid

(567)





(567)













Common stock issued, including treasury shares reissued

(23)





(23)













Common shares repurchased

(1,043)





(1,043)













Net intercompany borrowings





(1)





(599)





600



4

Proceeds from debt issued > 90 days

2,141





15





2,126









Payments on debt > 90 days

(2,466)





(6)





(2,460)









Short-term borrowings – net < 90 days

(40)





(5)





(35)









Other – net

(1)





(1)













Net cash provided by (used for) financing activities

(1,999)





(1,631)





(968)





600





Effect of exchange rate changes on cash

(80)





(59)





(21)









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

(1,162)





(1,048)





(114)









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

8,292





7,302





990









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

$

7,130





$

6,254





$

876





$







1

Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.

2

Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

3

Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.

4

Elimination of net proceeds and payments to/from ME&T and Financial Products.

 

Cision View original content:http://www.prnewswire.com/news-releases/caterpillar-reports-first-quarter-2021-results-301279971.html

SOURCE Caterpillar Inc.

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