Caterpillar’s Sales and Revenues Drop 3.6 Percent in Second Quarter

Caterpillar posted $16.689 billion in sales and revenues in the second quarter of 2024, compared to $17.318 billion in the second quarter of 2023, a 3.6-percent decline. In Caterpillar’s three primary segments, sales were lower in Construction Industries and Resource Industries and higher in Energy & Transportation. The decrease was primarily the result of lower sales volume, partially offset by favorable price realization.

“I’d like to thank our team for delivering another strong quarter, including higher adjusted operating profit margin, record adjusted profit per share and robust ME&T [machinery, energy & transportation] free cash flow,” said chairman and CEO Jim Umpleby. “Our results continue to reflect the benefit of the diversity of our end markets as well as the disciplined execution of our strategy for long-term profitable growth.”

Construction Industries dropped by 7 percent, Resource by 10 percent, while Energy & Transportation rose by 2 percent. Operating profit for the second quarter of 2024 was $3.482 billion, a decrease of $170 million, or 4.7 percent, compared with $3.652 billion in the second quarter of 2023.

In North America, sales were roughly flat in Construction Industries. Sales to rental fleets were slower in the second quarter, partly the result of slower sales to rental fleets, which Umpleby said was an important segment for the company’s dealers. He said dealer rental income was up for the quarter and added that the company was “bullish” on rental.

In Energy & Transportation, the Power Generation segment was particularly strong for Caterpillar, with sales of large reciprocating engines, primarily in data center applications, leading the way. Sales for turbines and turbine-related services increased as well.

Caterpillar’s Financial Products segment increased revenues 8.8 percent with $1.004 billion in Q224 revenues compared to $923 million in the second quarter of 2023.