Caterpillar Reports Decline in Sales and Revenues for Q3 2024, Operating Profit Margin Narrows

Caterpillar Inc. reported its financial results for the third quarter and the first nine months of 2024, revealing a decline in total sales and revenues compared to the previous year. For the three months ended September 30, 2024, the company generated total sales and revenues of $16,106 million, a decrease of $704 million (4%) from $16,810 million in Q3 2023. The decline was attributed primarily to lower sales volume, particularly in the Construction and Resource Industries, which saw decreases of 9% and 10%, respectively. In contrast, the Energy & Transportation segment experienced a 5% increase in sales, driven by favorable price realization and higher sales volume.

Operating profit for Q3 2024 was reported at $3,147 million, down from $3,449 million in the same quarter of 2023, reflecting a decrease in operating profit margin from 20.5% to 19.5%. Profit attributable to common shareholders for the quarter was $2,464 million, a decline of $330 million (12%) from $2,794 million in Q3 2023. Profit per share also decreased to $5.09 from $5.48.

For the nine months ended September 30, 2024, total sales and revenues amounted to $48,594 million, down $1,396 million (3%) from $49,990 million in the same period of 2023. However, operating profit increased to $10,148 million, up $316 million (3%) from $9,832 million in 2023, aided by favorable price realization and the absence of impacts from the previous year's Longwall business divestiture. Profit attributable to common shareholders for the nine-month period rose to $8,001 million, compared to $7,659 million in 2023.

Caterpillar's financial position showed a decrease in cash and cash equivalents, which fell to $5,638 million as of September 30, 2024, from $6,978 million at the end of 2023. Total current assets also declined to $44,946 million from $46,949 million. The company reported total liabilities of $66,870 million, down from $67,973 million at year-end 2023.

In terms of strategic developments, Caterpillar continued its share repurchase program, buying back 18.2 million shares for $6.1 billion in the first nine months of 2024. The company also anticipates restructuring costs of approximately $400 million for the full year 2024, primarily related to divestitures of non-U.S. entities.

Looking ahead, Caterpillar expects slightly lower total sales and revenues in Q4 2024 compared to Q4 2023, influenced by reduced machine sales to end users. The company is also monitoring external factors such as supply chain disruptions and inflationary pressures that may impact customer demand.