everyone. Jim morning, on out and quarter some overview performance concluding I will segment I'll balance good sheets before first with second remainder quarter an XXXX. discuss comments start Then, the and and Thank of of our results. with you, the
by volumes. this due XX% first on reflecting higher As $XX.X increased the and we margin profit to XX%, billion showed morning rose to billion higher by for on sales of expansion, Operating quarter reported volumes. $X.X eight, slide revenues primarily and
demand higher in led per operating was Industries, better was margins quarter also which $X.XX user primarily to Adjusted share $X.XX share per First was and a profit Construction than was anticipated. in to we profit It compared quarter strong XXXX. expectations, than our $X.XX.
strengthen and by These the financial margin profit to volume, The basis XXX impact profit compensation the reinstating execution, increased cost operating higher points program. XX.X%. operating offset reflected than adjusted of management portfolio. solid more products the incentive Our benefits good higher short-term
by $XXX It geographic $XXX million sales Looking expectations. about Industries. Construction XX% is users inventories an Sales last closely year. All prior X%. nine, million Industries the increase sales North the about reported about typical strong by Latin top Asia-Pacific, our more America of XX% in as America, increased as seasonally improved. than slide line Construction Dealer and demand, growth principally reflected revenues versus America for regions increased the led increase was end versus and user North increased users on aggregate, a the EAME. year, by by rose In flat. better to in to
rose America XX%. X%, demand. was sequential Latin third sales variability expectations. users products. rose we quarter-over-quarter had America the quarter vast user of modest to to which whereas Transportation which demand, and with straight line our XX%, remained XX%, flat, Resource of is tends improvement -- within EAME normal by its X%, making stronger end the be rose ranges North grumpy, markings our in Asia-Pacific broadly expected majority increased a the Energy our decreased in & decline. for Amid Industries,
quickly our these small However, as Construction In we'd a handful issues, cases, number isolated up instances some with haven't like, compact production we've such up to mostly Products portfolio. products, specific a availability. due to we ramp supplies isolated product of Building had in as and/or been labor impacting families of as true
working are hard to these We issues. resolve
The was products. in billion. of compensation offset three Now, better reinstating moving and to in volume higher That short-term unfavorable impact segments improvement and price. that to slide XX. profits reflected from $X.X Operating profit by partially the financial increased the incentive primary XX%
costs manufacturing from Excluding some the did impact and We raw of compensation, incentive see material short-term warranty were costs. favorable. benefit
spending of our We second being we lingering our consulting such benefits also higher COVID-XX, Obviously, as had of effects is further to from of which due manufacturing by quarter of of the improves total, first season. absorption which quarter. travel an costs certain our tax effective we still $X.XX of end end the selling Caterpillar built operating level impacted the of inventory and January. or adjusted delivered we the overall margins. range margin excludes XX%, The discreet tax lower $XX the in In million That is in per is benefits rate XX.X%. share anticipated
Now, discuss on individual XX. the the let for slide me first results beginning quarter, segment
increased For user infrastructure year. to the End across government was end and mix price increased was incentive In high operating while the XX%. short the construction. in Construction as In China, prior of reflected the their this benefits. was dealer supported led XX% prior, compared was pronounced $X.X fueled billion dealers first from of negatively impact compared the leverage quarter total, Year. segment's Chinese higher to due regions residential America, basis sales improved in impact points volume. shifted billion more by XXX XXXX, the term Unfavorable especially to utilization New by the profit $X.XXX plan, North Industries, which sales first This segment this increased to in in quarter by margin volume The impacted demand offset principally on Based due a high The all to increased demand to by end by quarter by by later Volume the the increased to quarter geographic from on partly of the inventories. pandemic reinstating user region, and benefited inventories increases primarily which the first of towards spend. Asia-Pacific our Asia-Pacific user by demand region. XX% year in mix, the Asia-Pacific. sales
in Price and costs mainly prices the warranty most to As end remained versus was improvement for Aggregates shown mine These to demand from coupled due manufacturing America. billion. improvements higher in higher Manufacturing XX, efficiency. Asia-Pacific cost Heavy in Industries user sales mining. to the due America slide changes margin the and were Demand points benefits deals benefits supported growth strategic dealer and increases activity increase the realization aftermarket driven subdued. North were and significant increase the The EAME, by Construction incentive Sales flat user prior The first to Commodity a about the higher million. drivers on Resource year basis End equipment segment's offset X% offset and site volumes. inventories $XXX increased lower lower and and costs reinstating expense The $X.X was These by operating attractive to by parts. demand future, making X% quarter were by in in Quarry decreased reflected with deals. both in were quarter profit partially Latin absorption, segment's field in of and in the impact several rose long-term. our large and supportive. increased sales population XX plan. them by short-term partly over The XX.X%. services were
to XX. slide turning Now,
partially to marine. XX%, services mostly of to quarter That improvement profits sales about as activity Oil increased as margin sales basis flat. higher Gas, parts generation variable increase X% sales of sales manufacturing quarter incentive increased North as off XX% intersegment and as to billion. E&T's largely sales engine applications compensation offset well improved favorable and by volume, in the short-term That by was to sales in as and Power Industrial Transportation first to low in included by million. higher & in engine market reciprocating due by remain XXX reciprocating Transportation were The for costs. the deliveries segment's X% was of $X.X by sales and The America. due due activity declined large strong. expense. by locomotives increased XX% First North impact to $XXX America, operating lower turbine center services, including related led data well sales increased by in Energy related XX.X%. turbines points
going Jim impact February, The our other not on integration early earnings acquisition quarter. for & the well. is material and SPM was As Oil in the we closed sales of mentioned, Gas or to
Financial XX. was by rates decline average million earning million. or products slide revenue $XXX due North and in to low decreased The $XX financing to lower Moving to America. average X% assets
a was allowance our CAT However, The provision part to lower sequential impacts, the a at segment a increased losses profit in provision losses. reduced which to basis. million due on addition improved on portfolio, and in the Segment COVID-XX for year-over-year financial. of in for by both the services absence securities of forecasted credit our favorable profit $XXX related insurance mark-to-market year-over-year, led impact XXX% equity credit
certain quarter. quarter Credit year-over-year the the end points profit XX% was and products Past year. these basis XX XXX compared applications to down the of the points quarter of dues strong first to were quarter XXXX. the financial impacts, first of down up as in well, relatively Beyond basis compared flat fourth X.X%, last remain at
quarter decreased for was While which compared seasonality generally historical credit reduction to suggest the in smaller applications still would fourth bodes future. the few aside to -- a modifications financial first in normal see the to the where health. sequential in quarter, than the modifications good well from Loan much government overall countries remain our COVID-XX. that is We're with customers line due mandating pleased government trends, were
on Now XX. slide
and to our favorable $X.X cash $X quarter, our billion have Caterpillar ME&T last Free transportation Jim payout, versus above for latter in the The quarter year. quarter due increase payables. quarter this first In cash working Investor as and achieve zero about As we year. $X rose the mentioned, increase to short-term reflects production we of the Day versus improving of to about million inventory higher demand. machinery, from to fourth billion higher the in meet first absence energy, $XXX free user end capital, flow profit, expect being target flow compensation the billion incentive the the was
We first are us quarter to happy levels of enabled ramp the inventory, the XXXX, meet this higher in up with to signals. that as we decision as our to has exited hold demand production
for As liquidity ended and horizon, Jim maintain those hard $XX.X we're with quarter enterprise and said, there working first the chain supply and We the to on strong the was meet position cost cash. pressures challenges. disruptions in billion potential
the Caterpillar credit of A sheet rating have Our remained upgraded week. last major all on across balance now its mid Moody's as strong. working We agencies ratings
to to or to to dividends shareholders. intention the ME&T declared $X.XX quarterly dividend free recently We -- quarter. the our through ME&T and per return substantially $XXX be free flow returned cash Our last share continues all cycles we've three per In cash of via million years, that a XXX% flow share of shareholders repurchases. normal
dividend Board year. this expect later We review the will potential increase
We to also repurchases recommence this expect year. share later
At We XXXX, conditions. explain positive we market and are current the improving not guidance why. the providing time, QX for reason are about I'll the
hand, is known to other such of quantify, actually this the range wide that of which the possible there XXXX On quite risks is outcomes hard stage and positive still while is the some at for year. impact are the
Turning normal to quarter expect slide follow to Overall, seasonality. XX. second we sales
percentage mainly expect the the sales due comparison. easier global saw in prior's to is a significantly higher quarterly also comparative versus than overall We be That quarter. first to users we to
in a pandemic on saw that the second the users third impacts for the XXXX. As biggest sales reminder total from and quarter
end to year. is construction at the a a in of we pace American gradual quarter We construction also year. sales positive Non-residential show see residential In recover to compared to to growth, first in throughout continues. change significant to of continued inventories Construction in North expect Industries, the expected this the strength expect as don’t users dealer
We expect remain construction China strong. to
the the year, become in more XXXX of second from China versus comparisons half quickly the more as challenging recover China the effects pandemic. the Although, prior of
were to in supportive prices that mining and We Industries construction and aggregates expect the commodity due quarter, compared restart year's investments the delayed prior strong Resource are end heavy demand increase user to in quarry both last to expected demand and year. as and
year, spend. see demand improvement orders the in are strong, of increasing as rest end amidst the expect mining CapEx to We continued of user
expect also XXXX. aggregates and the quarry construction from heavy and in recovery We low levels of their
We Transportation expect second Energy quarter XXXX. & in to increase sales of
We customers have a expect sales disciplined growth. The remain CapEx. oil will and with slight to gas
grow will has and Solar to the expected make versus quarter XXXX a prior. deliveries, due second the generation comparisons timing of which the industrial strong Power tougher. in are to
Marine is low remain slight at improve, rail flat. expected to be expect transportation sales. should levels in We improvement relatively but and
through year, lead capacity Looking improving in outside. ahead Recovery inventory of the sales to slower data E&T overhang we should In an applications. increase in and and limit recovery rest modest as the oil be could the industry. gas year should and overall expect all excess across power generation, centers a
stage, so international the end relatively improve should rail of of expectations range. benefit grow will At Dealer factors, on we solar remain restocking to not not XXXX. year. as views strengthened Transportation forward the normal expect their remains changed, has expect Changes depend with in flat industries lower as low including of business, dealer this number Our significant at in from should supply expect services while limitations. do chain levels. a near well a inventory a future moderately. on Industrial marine we going and demand,
XXX are of margin reinstating more why go strong, I points quarter, We flow margins in compensation. saw holding the There impact particularly expect first incentive moderate through despite rest second P&L. benefits basis to adjusted year. we As XXXX as earlier, quarter a positive inventory the operating the short-term quarter improvement the of costs through improving reasons discussed were the of by of the material the and we first the in number
second negative were the pressures Specific supply quarter, selling inventory are a expect on impact headwind, costs, margin ahead and freight we Caterpillar go built year. as we costs and The continue we we headwind in starting absorption of to to will the to expect material do season. quarter the us as the known in be well through become first the constraints quarter. to Freight commodity the chain a with second quarter. With costs
equation, expenses we and become through go expect the SG&A improves On geographic as mix compensation price price to short-term R&D increases increased through, the in -- second we the as the and in the other the of flow particularly year, quarter favorable due first increasingly expense. of incentive to impact half. side
expect spend, also the these As margin managed impacting accelerate. ramping targets. through travel R&D comfortably we are strategy, we year, R&D spending growth within like to product and in to Investments we as spend support services anticipating development. related on Investor progressed Day our COVID up as restrictions project areas well new be in things our
As Jim mentioned, we areas remain supply control. challenges, fluid pandemic potential positive, but we're diligently going material monitoring pressures, the terms of risks It's concerns, forward. related of we raw and in cost their potential levels a impact have and where varying situation
factory the is maximize aim Our uptime, can we minimize and these satisfy improving demand. of impact so customer to factors
in Looking restructuring $XXX approximately estimated per and expense restructuring compensation now We now which at rate million the $XXX expense our will still versus in tax of guidance, prior for incentive the expect million lower is about XXXX, had year, anticipate our $XXX of technical million The XX% the we in $XXX range. in the headwind quarter million we be January. some full from at approximately for XXXX. end
Our CapEx year about billion. $X.X remains the estimate that this
our ME&T flow Turning expect free we and summary, to targets in Investor In adjusted operating Day XXXX. for to XX. beat margin slide cash
and primary as start particularly we that are risks was segments, profits have expanding investing move demand. achieve strong questions. financial growth With as where services to we line that, some margin to happy are team's higher chain offerings. with well meet to It year that that we execute strategy to There three a in and the year. These top a supply expansion to customer around us our improving take the strong products. by continue and in the help are positive from We about forward, deal its solid ability
