Caterpillar’s sales and revenues for the fourth quarter of 2022 were $16.6 billion, a 20-percent increase compared with $13.8 billion in the fourth quarter of 2021. Fourth-quarter 2022 profit per share was $2.79, compared with $3.91 profit per share in the fourth quarter of 2021. Adjusted profit per share in the fourth quarter of 2022 was $3.86, compared with fourth-quarter 2021 adjusted profit per share of $2.69.
Full-year sales and revenues in 2022 were $59.4 billion, up 17 percent compared with $51.0 billion in 2021. The increase reflected favorable price realization and higher sales volume, driven by the impact from changes in dealer inventories, increased services and higher sales of equipment to end users. Dealers increased their inventories $2.4 billion in 2022, while remaining about flat in 2021. Full-year profit was $12.64 per share in 2022, compared with profit of $11.83 per share in 2021. Adjusted profit per share in 2022 was $13.84, compared with adjusted profit per share of $10.81 in 2021.
“Our global team delivered one of the best years in our nearly 100-year history, including record full-year adjusted profit per share,” said Caterpillar Chairman and CEO Jim Umpleby. “Despite supply chain challenges, the team achieved double-digit top-line growth and generated strong ME&T free cash flow. We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth.”
For the full year of 2022, enterprise operating cash flow was $7.8 billion. During the year, the company repurchased $4.2 billion of Caterpillar common stock and paid dividends of $2.4 billion. Liquidity remained strong with an enterprise cash balance of $7.0 billion at the end of 2022.
The increase was caused by favorable price realization and higher sales volume, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories and higher sales of equipment to end users. Dealers increased inventories by $700 million during the fourth quarter of 2022, compared to remaining about flat during the fourth quarter of 2021.
Big jump in construction
The Construction Industries segment rose 34 percent in the fourth quarter in North America. In Latin America, revenues jumped 39 percent; in EAME the increase was 10 percent, while in Asia/Pacific sales and revenues dropped 10 percent. Resource Industries hiked 59 percent in North America; 21 percent in Latin America; 12 percent in EAME; and 5 percent in Asia/Pacific. Energy & Transportation enjoyed a 33-percent leap in North America; 57 percent in Latin America; 5 percent in EAME, with a 1 percent decline in Asia/Pacific.
In Power Generation, sales increased in large reciprocating engines, primarily data center applications, and small reciprocating engines. Turbines and turbine-related services increased as well. In the Industrial segment, sales were up because of higher demand across all regions.
