Caterpillar released its 2023 annual reports today, showing a $7 billion profit in the construction sector; a 9% increase over 2022.
The company listed $27.4 billion in sales in the sector overall, crediting online selling and demos at CONEXPO-CON/AGG as some of the reasons for its growth.
Among its construction sector highlights, Caterpillar listed:
- Invested in services initiatives to deliver an easy-to-buy, easy-to-own customer experience – doubling the number of active customers online, nearly doubling successful prioritized service events and continuing growth of customer value agreements (CVAs).
- Showcased services, sustainability and technology solutions to nearly 50,000 dealers, customers and guests at Operator Stadium during CONEXPO/CON-AGG 2023, including the 301.9 Electric Mini Excavator demonstration.
- Expanded Cat Command remote control technology to 60 product models, enabling machines to be controlled without anyone in the cab, enhancing safety and efficiency for our customers.
- Celebrated 10 years and 100,000 machines produced at Athens, Ga., facility.
"I am proud of our global team’s strong performance in 2023, delivering the best year in our 98-year history. Throughout the year, they worked to meet healthy customer demand while remaining focused on executing our enterprise strategy and profitably growing our business," said Caterpillar Chairman and CEO Jim Umpleby in his opening letter in the financial report.
When it comes to numbers for 2023, the company's 10-K report included these figures:
- Sales and revenues for 2023 were $67.060 billion, an increase of $7.633 billion, or 13%, compared with $59.427 billion for 2022.
- Sales were higher across the three primary segments: construction, resource industries (mining) and energy and transportation (oil and gas, power generation).
- Operating profit as a percent of sales and revenues was 19.3% in 2023, compared with 13.3% in 2022. Adjusted operating profit margin was 20.5% in 2023, compared with 15.4% in 2022.
With its corporate headquarters in Irving, Texas, Caterpillar is the largest manufacturer of construction and mining equipment, as well as off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company spent $2.1 billion on research and development and made $43.5 million in foundation contributions. There more than 4 million Cat products in use globally and the company employs 113,200 people.
Caterpillar's services sales, which include everything the company does to help customers after the sale, grew to a record $23 billion in 2023, with a 2026 goal of $28 billion. Services include digital products like apps and aftermarket parts sales, as well as equipment maintenance scheduling.
Among its ongoing risks, the company listed:
- Global and regional economic conditions: Economic weakness can significantly reduce demand for products.
- Catastrophic events: Pandemics, natural disasters and other events could adversely affect employees, systems or ability to produce products.
- Commodity price changes.
- Changes in government monetary or fiscal policies.
- Global political and economic uncertainty.
The company also released its Sustainability Report, financial disclosures, diversity report and lobbying report. Links to those reports can be found here.
