Supplier Earnings Roundup: CAT, Eaton, ITW - Modern Distribution Management

Supplier Earnings Roundup: CAT, Eaton, ITW

It's another week for industrial manufacturers' financial reports. We recap the key figures for thee of them here.
In the latest earnings reporting p

MDM is in the midst of another quarterly financials reporting period for publicly-traded industrial distributors and manufacturers. Read below to learn about the most recent sales and revenue numbers for companies MDM typically covers, including: construction equipment manufacturer Caterpillar, Ireland-based power management supplier Eaton and industrial products and equipment maker Illinois Tools Works (ITW).

Caterpillar

On Oct. 31, the company reported 3Q 2023 earnings, which included revenues of $846 million, an increase of 23% compared with the third quarter of 2022. The increase was primarily due to a $118 million favorable impact from higher average financing rates, CAT said. Year-over-year sales growth was 12%; however, that was down from 22% reported in 2Q 2023 and 18% in 1Q 2023. Third-quarter 2023 profit was $98 million, a decrease of $33 million — or 25% — compared with $131 million in 3Q 2022.

Profit before income taxes for 3Q 2023 was $170 million, a decrease of $18 million — or 10% — compared with $188 million in 3Q 2022. The decrease was mainly due to a $51 million unfavorable impact from a higher provision for credit losses mostly driven by the absence of prior year reserve releases, partially offset by a $24 million favorable impact from mark-to-market adjustments on derivative contracts, CAT said. During 3Q 2023, retail new business volume was $2.89 billion, an increase of $169 million — or 6% — compared with $2.73 billion in 3Q 2022.

Earlier this month, the company announced that Joseph E. Creed, Group President of Energy & Transportation, has been appointed to the newly created position of Chief Operating Officer, effective Nov. 1.

Eaton

For 3Q 2023, the company said sales were $5.9 billion, a quarterly record and an increase of 11% from 3Q 2022. Organic sales were up 9%, and positive currency translation added 2%. Eaton also reported record quarterly segment margins of 23.6%, 240 basis points above 3Q 2022, with a 46% incremental margin.

Operating cash flow was a third-quarter record $1.1 billion, and free cash flow was $913 million, up 18% and 10%, respectively, over the same period in 2022. The company’s backlog was up 18% over 3Q 2022, up 4% sequentially, Eaton said.

In 3Q 2023, sales for the Electrical Americas segment were a record $2.6 billion, up 19% from 3Q 2022, driven entirely by organic sales growth. Sales for the Electrical Global segment were a third-quarter record $1.5 billion, up 1% from the third quarter of 2022. Organic sales were flat, with positive currency translation adding 2%, partially offset by the impact of a small divestiture.

ITW

For its third quarter of 2023, ITW reported revenue of $4.0 billion, an increase of just 0.5% over the same period last year. Operating income, however, was $1.1 billion, an increase of 9%, while operating margin was 26.5%, an increase of 200 bps.

On an equal days’ basis, organic growth was 2% during 3Q 2023. Operating cash flow was $982 million, and free cash flow was $856 million, an increase of 40 percent over 3Q 2022. ITW also said it is narrowing the range of its full year GAAP EPS guidance from $9.55 to $9.95 per share to a range of $9.65 to $9.85 per share.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.