- Caterpillar Inc (NYSE:CAT) reported first-quarter FY22 sales and revenue growth of 14.3% year-over-year to $13.59 billion, beating the consensus of $13.40 billion.
- Revenue growth was driven by higher sales volume and favorable price realization, partially offset by unfavorable currency impacts.
- Segment Revenue: Construction Industries $6.12 billion (+12% Y/Y), Resource Industries $2.83 billion (+30% Y/Y), and Energy & Transportation $5.04 billion (+12% Y/Y).
- Financial Products segment revenue increased by 3% Y/Y to $783 million.
- Adjusted EPS was $2.88, beating the consensus of $2.60.
- Dealers increased inventories by $1.3 billion during the quarter, compared with an increase of $700 million in 1Q21.
- Operating profit increased by 2.3% Y/Y to $1.86 billion, and the margin contracted by 160 bps to 13.7%.
- Caterpillar generated an operating cash flow of $313 million in Q1, compared to $1.93 billion a year ago. It ended the quarter with $6.53 billion of cash and equivalents.
- The company returned $1.4 billion to shareholders through share repurchases and dividends in the quarter.
- Outlook: Caterpillar expects 2Q22 sales to increase sequentially, reflecting continued strong end-user demand and pricing. The company expects the 2Q22 adjusted operating profit margin to be similar to 2Q21.
- CAT expects margin improvement in 2H compared to 1H.
- Price Action: CAT shares are trading lower by 5.20% at $203.00 on the last check Thursday.
- Photo Via Wikimedia Commons
