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

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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).


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.


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.


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.

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