<\/span><\/a>Caterpillar in brief<\/span><\/h2>\n\n\n\n
Caterpillar Inc. is a US corporation that manufactures and markets diverse equipment used in construction, mining, energy, and transportation. It was established in 1925 following a merger between the Holt Manufacturing Company and C<\/a>. L. Best Tractor Company. Caterpillar’s products are officially represented in more than 190 countries worldwide.<\/p>\n\n\n\n
Caterpillar operates within the following key business segments:<\/p>\n\n\n\n
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Construction Industries – construction machinery such as excavators, loaders, and bulldozers<\/li>\n\n\n\n
Resource Industries – solutions for the mining industry, such as mining trucks and drilling equipment<\/li>\n\n\n\n
Energy & Transportation – products and services for the energy and transportation industry, such as diesel and gas engines, industrial turbines, electric-diesel locomotives<\/li>\n\n\n\n
Financial Products – financial services for clients and dealers, for example, the provision of assistance in equipment purchase and investment protection<\/li>\n<\/ul>\n\n\n\n\n\n
<\/span>Caterpillar’s Q2 2023 report<\/span><\/h2>\n\n\n\n
Caterpillar Inc. released<\/a> the Q2 2023 report on 1 August. Revenue for April to June increased 22% compared to the corresponding period of 2022, reaching 17.318 billion USD. The figure fell short of a new record by 56 million USD. It is worth mentioning that it amounted to 17.374 billion USD in Q2 2012.<\/p>\n\n\n\n
Distribution of quarterly revenue by segment:<\/p>\n\n\n\n
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Construction Industries – +25.2%, up to 7.2 billion USD<\/li>\n\n\n\n
Energy & Transportation – +17.6%, up to 7.2 billion USD<\/li>\n\n\n\n
Resource Industries – +20.6%, up to 3.6 billion USD<\/li>\n\n\n\n
Financial Products – +16%, up to 0.92 billion USD<\/li>\n<\/ul>\n\n\n\n
Earnings per share saw a significant increase of 74%, reaching 5.55 USD, and the net profit set a new record of 2.92 billion USD. The operating profit margin was 21.1%, compared with 13.6% a year ago.<\/p>\n\n\n\n
Caterpillar Inc. bought back shares of its own stock worth 1.4 billion USD and allocated 0.6 billion USD for dividends<\/a>. The value of the corporation’s stock has increased by 37% from 27 April (when the Q1 2023 report was released) to 1 August.<\/p>\n\n\n\n
<\/span><\/a>Caterpillar’s outlook for 2023<\/span><\/h3>\n\n\n\n
Caterpillar Inc.’s management predicts a decline in Q3 2023 sales in the construction industries segment due to seasonal factors. However, the company expects free cash flow for 2023 to reach 8 billion USD, which is 240 million USD higher than in 2022.<\/p>\n\n\n\n
The main driver of annual revenue growth is a 1.2 trillion USD infrastructure bill adopted<\/a> in the US. Repairs and reconstructions are expected to require a significant amount of special-purpose machinery.<\/p>\n\n\n\n
In addition, Caterpillar Inc.’s management points to rising demand for machinery from representatives of the mining industry, specifically companies engaged in developing lithium and rare-earth minerals deposits. These minerals are crucial for manufacturing essential components in electric vehicles.<\/p>\n\n\n\n
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<\/span><\/a>What affects Caterpillar’s revenue<\/span><\/h2>\n\n\n\n
An analysis of Caterpillar Inc.'s revenue over the last 13 years may reveal a correlation<\/a> between the financial indicator and the oil price, with revenue increasing when oil prices rise.<\/p>\n\n\n\n
$\"Charts$
Charts of oil prices and Caterpillar Inc. revenue<\/em><\/figcaption><\/figure>\n\n\n\n
As oil prices increase, investments in oil production are likely to rise, leading to an increase in the number of drilling rigs, which drives demand for relevant equipment and machinery like Caterpillar Inc.’s products.<\/p>\n\n\n\n
$\"The$
The Baker Hughes active rig count<\/em><\/figcaption><\/figure>\n\n\n\n
However, the drilling rig count decreased since 2023 due to the trend for green energy. Caterpillar Inc.'s revenue is nevertheless approaching its all-time high. The disruption of the outlined correlation may result from a shift in revenue from the oil industry to mining and construction.<\/p>\n\n\n\n
<\/span>Caterpillar stock live price chart<\/span><\/h2>\n\n\n\n\n