Caterpillar full-year sales were down 3% to $64.8 billion in fiscal year 2024. Sales the previous year topped $17 billion. Caterpillar cited lower sales volume to end users that was partially offset by price increases.
Operating profit for the year was up slightly to 20.2%, compared with 19.3% last year. Profit per share was up 9% to $22.05.
Jim Umpleby, chairman/CEO, said that although the “top line” decreased, service revenue continued to rise. Service revenue increased to $24 billion in 2024, 4% higher than 2023, and he said the company expects continued growth in 2025. Caterpillar has 1.5 million connected assets, he said, and two-thirds of new equipment was sold with a customer value agreement (CVA).
Caterpillar fourth quarter 2024 results
Financial data for the fourth quarter show a 5% decrease in sales compared to the same period a year ago to $16.2 billion. Sales volume was down to both dealers and end users. Sales in the Construction segment were down 8% to $6.5 billion. Construction sales in North America were down 14% for the quarter to $3.2 billion, whereas sales in the Energy & Transportation (E&T) group jumped 6% to $3.5 billion.
Overall, profits in the Construction segment dropped 24% to $1.2 billion, compared to $1.5 billion in the same period a year ago. E&T profits were up 3% to $1.5 billion.
The company said Construction sales and profits were down due to “unfavorable price realization.” Lower sales volume to end users and decreases in dealer inventory also affected sales in Construction. In North America, dealer inventory decreased less than it did in Q4 2023.
Sales for 2024 were $65 billion.