on few free morning, cover the segments. sheet assumptions of good the and a for second and Jim, balance results, flow year quarter. comments concluding the before cash Then including Thanks, I'll quarter begin performance color ME&T providing on by with the full first further everyone. the our I'll and our
currency and user we realization, each Slide billion, Sales higher to sales than billion for prior $X.X impacts. partially increased by and or the offset X. were to year expected inventory in due we higher revenues was first price slightly Sales realization had Beginning versus end $XX.X by on increase with price anticipated. volume, better the strong quarter XX% and dealer demand had January, the than
operating profit Operating or XXX impact profit offset by margin The $X.X increase $X.X price company's XX.X%, by billion the XX% operating costs. Favorable realization of increased by to points was an volume Adjusted by the year. prior of of manufacturing partially which billion. XX% business. million versus increased basis adjusted profit includes and the higher billion, was $X.X longwall divestiture higher to the $XXX
margin anticipated. I'll moment. was provide Jim had As while additional also stronger operating including with variable, largest costs, we efficiencies envisaged. than were price absorption, than the the volume we a had realization in adjusted and much mentioned, better manufacturing color and Lower-than-expected
profit Adjusted by of share to year. pretax of increased This costs million, excluded in first $X.XX in $X.XX longwall per XXXX first to the in to from in related the the per the compares compared share of restructuring $XX the $XXX most of costs profit restructuring quarter quarter pretax quarter Adjusted this XX% quarter business. XXXX. first to first of the noncash million divestiture of of company's charge last the
was of balance adverse sheet translation in the The million currency impact $XX year-over-year expense. million included related unfavorable $XXX million $XX of by first income and the $XXX an Other of million. XXXX quarter lower about ME&T pension impact quarter for than decline to
last quarter better dollar spoke than was in anticipated of earnings to $XX impact you strengthened January. so the had call, our we currency first million we about since The within the when marginally than XXXX
global quarter, the a excluding Finally, XX%. effective the discrete tax annual items, rate income provision first reflected for of in tax
the dealer positive. $X.X that remain ordering minimal, of was build first impact Volume to the XXXX. due quarter the and a Moving while users. driven line prior currency part mine. quarter by patterns the changes down, remained slightly the their in or The headwind year in the favorable Services on to to sales in to in was in sales to inventory XX% due customers top first improved billion The realization from was increase mainly in similar higher a as increase sales. XX% volume, Slide price sales to X, dealer versus volume was to services seen
a to stronger and demand. slightly ago, to sales anticipated, higher users quarter price to due our better-than-expected strong Compared we volume, outpaced largely to sales expectations our expectations than were realization. volume due On
levels more In slightly of their to supported improving levels chain by production season dealers inventory across selling addition, primary had segments. expected. we enabled higher of supply This increase than the ahead the our
to XX. Moving Slide
operating costs. XX% year profit profit the XX% also First quarter operating favorable by quarter Adjusted was price increased a billion. versus as by $X.X Sales outpaced realization volume to benefit. higher increased prior manufacturing
year. XXX a adjusted increase versus the Our was XX.X% operating margin of first basis quarter profit prior point
why explain me our so let better much we than adjusted operating Now expected. profit was margin had
increase anticipated had less in factor than did was we the quarter. than the most costs was important and the manufacturing While year-over-year, increase
mentioned, the favorable As to were we and chain. due expected volumes in supply better have demand improvements than
manufacturing cost impact freight and Freight Material utilization than better help cost the lower premium costs had This we efficiency costs was were expected. in and than also were margin and our were to both not anticipated line reductions. with rate did absorption lower outperformance. factory expectations due
price than strategic lower In we had had addition also Spend costs, volume than planned. project up stronger spend a had also manufacturing impact was investments quarter was as realization a expected, margins. beneficial slower smaller lower to ramps anticipated on ago. than we on Stronger-than-anticipated
favorable volume by offset I'll price sales XX, in Moving sales to quarter Starting and impacts. lower $X.X to Industries, partially unfavorable realization, billion to increased the Construction XX% due performance. first Slide currency by review segment with
volume in compared less to in quarter of higher increased sales by sales our first driven decrease changes volumes. expectations, from Compared inventories, the prior to the by XXXX than stronger The in impact were which the was year. dealer to due
in volume. to While By price sales inventory America constrained region, stronger-than-expected realization sales chain inventory from by North a in is were and rose supporting North continues Supply anticipated, be dealer perspective. increase dealer XX% region the users most region. to we'd shipments to our higher due a improvements This our restocking was above sales as as favorable positive, dealer in North the enabled slightly expectations. America America, end
volume, primarily to favorable currency price partially price volume Sales favorable unfavorable in decreased by by favorable by offset by favorable America realization. realization, sales due lower on X% by lower by Latin due Sales sales impacts, realization. decreased increased price offset partially to EAME, In sales X% in partially and XX% offset currency Asia-Pacific primarily impacts.
including XX% to drove costs. and First unfavorable manufacturing Industries This by mainly billion, versus increased price partially lower volume, the an year $X.X quarter increase. offset product profit by mix was prior Construction the realization for sales higher
segment's was operating moderating better-than-expected for costs exceeded the margin last margin price an and points year. increase of volume. versus The segment XX.X% manufacturing on expectations XXX of The quarter basis and our
had and had volume the lower was closed on the we Production manufacturing favorable favorable costs expected Manufacturing were first. favorable than margins which from fourth freight, absorption. more the anticipated, efficiencies to benefits we usual than quarter
did recall in to we January, that not happen. that we will expect You said
grew $X.X first primarily Industries to was sales to billion. and to The by Turning the sales price Slide XX. due realization increase Resource favorable XX% in volume. quarter higher
industries customers aftermarket dealer to Although, sales to buying services due volumes were dealer positive. lower in remain resource patterns,
increased First Resource offset volume. favorable was quarter by versus XXX% to realization million, price manufacturing mainly $XXX higher costs. the for due partially to This sales profit Industries by prior and year unfavorable
and manufacturing exceeded last of XX.X% margin efficiencies margin expected XXX operating segment's absorption, year. realization better freight. than Price Segment was expectations. points was benefits increase versus to an we due lower The also of our volume including basis and favorable costs,
Transportation all & sales quarter Oil the with sales increased And industrial by billion, first by applications. power sales by transportation XX%. across to $X.X finally, gas increased up Energy XX%, by Slide XX. by sales on double-digits XX%, sales XX%. sales generation in and increased Now XX% rose
higher offset. quarter SG&A profit $X.X The First expenses prior manufacturing and and growth. SG&A to volume. a realization R&D was Unfavorable due XX% and increased strategic investments higher & costs acted services electrification Energy with including by expenses versus aligned increased year our price Transportation mainly as initiatives, favorable for and increase sales to due the to primarily R&D partial billion. and
the stronger Compared points our XX.X% to lower segment's a Volume anticipated year, part basis was margin last had expectations on quarter, manufacturing was than absorption. lower typical than expected. increase due versus as better was perspective. from of modestly quarter costs fourth The seasonality favorable is last but of an margin operating than we to XXX in also
Segment X% to Slide all across by by financing to increased Products XX. higher to decreased $XXX due rates Financial primarily revenue average to regions. Moving million. million XX% $XXX profit
profit to contracts. mark-to-market was due derivative currency securities, mainly unfavorable adjustments from The decrease exchange losses impacts on slight and equity
as and lower losses partial average credit higher offset. yield acted assets for provision on However, net earning a
declined Business compared basis to past banks. dues the activity high new point XXXX. volume to quarter This drove this percentage our lowest from retail deals is since business well. were XXXX, X.XX%, dues continues of as competition cash of Past the in to XXXX. improvement expected and portfolio and X compared remains And the quarter first first increased the perform quarter whilst strong, first interest rates was more quarter a
Finally, see used elevated equipment demand remain while historic to for at is prices continue lows. inventory we equipment, as used strong
on, CAT strong broad I access move that out has to and I to want Before liquidity funding. point Financial
We are markets profile. assets currency liabilities wholesale interest deposits, than match duration, the debt and rate rather funded customer and on we through based from and
a slowdown banks provide interest As rates machines in some machines. and to from to tend rising we to have mentioned in share the lending we a of lose interest than previously, In financed. and fund event positioned creditworthy their environment, rate of the banks, regional customers, in are they able step purchase well CAT more can we so Financial, are competitive
Slide Now on XX.
billion generate to increase This in continue annual a short-term profit. increase included cash was ME&T in impacted incentive the inventory. was compared is billion Caterpillar of outflow the quarter capital that primarily cash working year. increase flows. quarter prior free free in flow an about driven and notable payout to We an increase rise by higher in $X.X in our by $X.X a the ME&T The strong
ME&T $X free $X – to mentioned, half strong first to cash half the year the expect flow we billion. first our Jim end – billion the of strong range quarter, following of As top in
for to the still and we quarter, expect the billion around $X.X around year. was million spend CapEx in $XXX
the capital $X in repurchases. dividends deployment was for quarter mentioned, billion about Jim and share As
Our have $X.X strong, sheet balance and cash an balance ample remains billion. liquidity with we of enterprise
Now for the year, high-level followed second by on will Slide full quarter. the some XX, share I assumptions
Looking at end the supported by underlying strong price to with top-line full markets. year, and higher we users, expect healthy sales a
expect mentioned, full Underlying we Industries and growth the movements, Industries Jim the be As in impacted users year. sales Construction as in reported quarters. to to half remains Construction expect strong demand the to second positive we dealer for sales of three show inventory do by year next particularly
end stronger XXXX. strength markets anticipate Resource in sales in continued We and end Industries user
seasonality typical Energy second ramp strong in Transportation for as turbines. we addition, half in In engines & given sales demand would some to expect see the suggest, large and
current on our Based year our Moving margins to we be full target range. half top to on operating margins. planning adjusted assumptions, of anticipate in profit the
absorption remaining Given the cost the recur, markets level, quarters quarter the will do anticipate demand than in year the lower quarter, the first which we margins strong. impact of be expect in first to and while favorable not we remain end underlying of
we the ramp to start, will Also related spend investments anticipate through the despite within slower-than-expected the SG&A R&D year. and strategic
to expect we price XXXX. will although We price increases in the absolute favorable, dollar as the continue moderate lap year-over-year value through put increases the to through be of
expect costs possibility benefit manufacturing we’ve means the price the further between machines manufacturing the of for progresses, margins moderate have manufacturing cost price to and cost relationship up and margin which also the to XXXX the outpacing expansion. price We This as to of early that will tempering in inflation increases, XXXX. late year normalize caught outpaced now as
per first we the of similar quarter, mind, corporate level a to in Keep quarter million anticipate related about pension $XX at expense. still the to headwind
And around first be excluding global continue tax remaining the items. this to should $XXX around expenses effective around with rate also million restructuring of year, million quarter. following We discrete the XX%, anticipate $XXX
for assumptions our to the quarter. on second Now
on quarter users compared We and in to the to sales expect prior sales year higher second strong price. the
we the second as sales seasonal Following higher compared quarter to pattern, in typical expect the first. the
users, & to We accelerate Transportation expect sales given Energy supported which healthy will are by strong sales demand.
compared We positive are to Resource quarter sales expected segments in report expect users. Construction to Both sales Industries to levels to first report Industries. flattish and the
in the In inventory dealer a decrease of we of million. second XXXX, saw quarter $XXX
margins the smaller of in the be substantially enterprise price Specific the the prior and year, segment second on operating year versus should favorable to second adjusted quarter We than margins level stronger at expect and a prior decrease XXXX. volume. quarter
pattern sales. second the the we see to return expect quarter higher quarter, despite to However, lower seasonal a margins first typical of compared to do
the as We benefit second the the expect lapped year-over-year first saw in realization quarter prior quarter, we in benefit year price moderate of to the we to increases. compared
like electrification. and strategic and connectivity, spend autonomy, SG&A addition, R&D continue accelerate investments our to In should investment fuels, areas we as increase, alternative in digital
Finally, impact favorable we that first be will saw the absorption in quarter anticipate do that not repeated. the we
favorable in lack ramp-up strategic we Industries, largely expect level, segment Construction absorption investment compared a of due from margins lower the the the and second At impact to first a to spend. quarter quarter in
likely quarter seasonal as compared the lower to by to be see Likewise, Conversely, demand remains & second Resource slight margins stronger volume in the is as typical Transportation improvement Energy first than Industries quarter first healthy. pattern. a supported the were should sales levels, margin quarter
Now year. was and turning of increased price of XXX to cash Slide for by $X.X expect billion billion, by at full margin our range strong and XX% free we me billion realization Sales strong adjusted operating XX.X%. points half cash The basis to to profit be flow free by the $X XX, flow to the ME&T ME&T gains. let $X top led volume grew at summarize.
currently remains chain strong half top adjusted XXXX first dynamics, quarter, we healthy The operating improving the backlog target underlying our supply a end profit positive will of in margins markets. with After our be environment and strong a expect range.
our to continue execute growth. will profitable long-term We strategy for
we’ll with And your take that, questions.
