Caterpillar Inc. (NYSE:CAT) stock fell 1.64% (As on February 19, 11:49:28 AM UTC-4, Source: Google Finance) after the company’s earnings came in at $1.45 billion, compared with $2.12 billion, in last year’s fourth quarter. Operating Profit Increased $69M or 4% affected by favorable price realization and increased sales volume, mostly offset by a goodwill impairment charge, higher manufacturing costs and restructuring expenses and unfavorable manufacturing costs reflected higher material costs, unfavorable cost absorption and period manufacturing costs. The company posted Adjusted Operating Profit Margin of 17.0%. The company has generated strong operating cash flow of $7.8 billion and ended the year with $7.0 billion of enterprise cash. The company has returned $6.7 billion to shareholders through share repurchases and dividends in 2022.

CAT in the fourth quarter of FY 22 has reported the adjusted earnings per share of $3.86, missing the analysts’ estimates for the adjusted earnings per share of $4.02, according to figures compiled by Thomson Reuters. . The company had reported the adjusted revenue growth of 42 percent to $19.60 billion in the fourth quarter of FY 22. Sales increased across the three primary segments and also due to favorable impact from price realization and higher sales volume.

Construction Industries Segment Profit Increased $693M or 87% and Total Sales Increased $1,109M or 19%. Resource Industries Total Sales Increased $717M or 26% and Segment Profit Increased $317M or 110%. Energy & Transportation Segment Profit Increased $492M or 72% and Total Sales Increased $1,095M or 19%. Financial Products Segment Profit Decreased ($59M) or (24%) while Total Revenues Increased $77M or 10% due to higher average financing rates across all regions.

For Full-Year 2023, the company expects sales in 2023 to increase versus 2022 supported by favorable price, expects stronger sales to users in 2023 and no significant change in dealer inventory by year-end, expects 2023 adj. operating profit to increase versus 2022 and to be within the 2023 adj. operating profit margin range and expects price to more than offset manufacturing costs. The company anticipates increases in SG&A and R&D as the company continues to invest in strategic initiatives, Increased pension expenses in other income (expense) of about $80M per quarter in 2023, restructuring expense expected to be about $700 million,  Capex to be of about $1.5 billion and Estimated global tax rate of about 23%, excluding discrete items.