assumptions for quarter. of and including discuss flow morning, commentary the Thank remainder begin I'll color the the cash of you, business including quarter the Jim, everyone. sheet second third with our on results, before concluding our the good on free performance Then I'll segments. and balance year, the with
Beginning X. on Slide
strong team saw Our strong on robust as second quarter top-line a operating flow. expectations and very delivered cash performance. operating ME&T our results margins improved We a growth, free overall healthy exceeded
year, of range level. For top anticipated the to targeted our now operating profit the be expect close the our margin to we sales adjusted at
ME&T be around cash billion free top expect the to also We flow range. of to target billion $X our $X
an sales Operating billion operating year to XX% prior higher $X.X increased sales adjusted billion. versus billion due increase or XXX profit XX% points billion. was and by The price to by Sales results, margin increased $X.X of and year. revenues XX.X%, the was realization. the To increase volume summarize versus the profit to or $XX.X basis prior $X.X
compared by $X.XX the prior per deferred Adjusted of were $X.XX restructuring in share, tax quarter share XX% year. per compared year. a quarter costs share last second included in to discrete the the profit This second Profit flat this per to share, was while to of increased year. $X.XX $X.XX per benefit $X.XX
$XXX about the to expect expenses continue full-year. restructuring We for of million
Other and expense interest income an by the the tax partial by our as than reflected million. currency offset. driven Higher rate a for initially quarter we of items in pension expectation sheet spoke for income XXXX $XXX remains to which impact of approximately year-over-year a XX%, second lower excluding quarter, in decline $XXX ME&T and balance income was The annual a of quarter increase in provision which the full-year. second approximately discrete recurring of related about was million, unfavorable acted to January. quarterly translation effective global you investment primarily million $XX The in the tax
the for XX% quarter versus changes sales increase higher from than Sales on top-line improved prior users in mostly increased XX% and for the year Moving dealer due in in was the with line quarter. volume we Slide the increase, strong particularly to anticipated, X. was expectations volume than outperformance due dealer to to in due realization to higher as Price & was reflected expected inventory. sales which center price. Energy were our to data and shipments which volume. Volume is line stronger Transportation, inventory The by had in a generation, The primarily with power in our demand.
As users quarter. sales I grew to XX% by the mentioned, in
demand end As and Jim order by services most our discussed, backlog. all and remains for markets products a across has is healthy healthy supported
Moving XX. to Slide
XX% profit and R&D realization price operating higher favorable Year-over-year which included expenses profit increased higher costs. strategic operating and quarter costs, offset investment were higher Second XX%, increased higher to spend. An manufacturing partially increase $X.X by billion. while material largely volume by SG&A adjusted reflected by sales in
The XX.X% exceeded profit than margin which Volume outperformance. our we had margin operating supported adjusted anticipated. better was of the expectations,
less and and than from freight than lower costs R&D impact increased due we expenses costs manufacturing SG&A in addition, anticipated to expected were absorption. lower line. about cost a In
sales review I'll XX. By XX% price due Industries supply end stronger improvements region. second higher higher sales by what $X.X remains volume. to price chain America expected to and in equipment Slide This to America. supported XX% users quarter due region, most shipments North realization to and in delivery stronger segment than the of sales billion rose performance. stocking Construction by the constrained and Moving in volume our increased and to Stronger some enabled North demand realization. in sales sales
in In primarily Sales Asia/Pacific sales XX%, were due the sales by America of about offset realization. in sales price flat. increased by lower primarily volume result and decreased by to EAME, Latin realization. Sales higher XX%, price volume, partially
margin volume Second XX.X% than increased to prior than XXX price operating points versus $X.X had to year was billion. we last the profit for of increase which due anticipated. of XX% quarter mainly due expected and lower segment's The year. costs, increase freight our largely exceeded versus basis Construction sales realization higher was volume. an by to better Industries were expectations, of Margin The
to due end Slide by XX. to Industries was sales The equipment higher in to XX% increased Resource primarily to and higher sales users. of quarter the price second Turning $X.X sales increase Volume due to realization grew volume. billion.
Although aftermarket sales to remained volumes positive. were lower, customers for services sales dealer
of volume. million, realization manufacturing volume, R&D timing margin costs. Industries than spend of points prior year partially margin year. operating mainly we and $XXX The XX.X% freight Second was due quarter price than offset expected, profit for primarily was XXX The versus the had to an favorable increase segment's higher segment's versus costs, material by was sales last to to unfavorable XXX% of lower basis Resource and due SG&A by anticipated and better largely increased This costs.
sales XX. & double-digits on by XX%, increased by across gas rose transportation Energy to by increased industrial and the sales XX%. billion. Sales were Now sales Oil by sales Slide sales generation power second XX% XX%, Transportation by increased increased quarter all and up in applications. XX% $X.X
price prior due R&D manufacturing the unfavorable XX.X% and Second margin $X.X year increased in mainly an partially for last offset to operating versus XXX Energy was segment's increase XX% was higher SG&A billion. generally our to of versus margin Transportation The volume The increase was quarter with realization, by sales costs basis profit and & year. and expectations. of expenses. points line higher by The
to revenue by increase Financial provision to to Cat primarily to by increase was to million, expense. credit regions. all Segment financing lower due SG&A rates Products an profit increased due across mainly XX% average increased XX% The at for offset higher in Moving XX. by Slide million. losses Financial, partially a $XXX $XXX
to dues quarter. business quarter the dues portfolio X well, of new Business were XXXX. perform lowest XXXX. past activity versus quarter the compared points the since first our second and Retail in to performed quarter basis remains improvement percentage and is prior well. strong, second a year X.XX%, continues the This increasing Past volume the
we see to strong used addition, In demand equipment. for continue
Now on Slide XX.
to quarter. billion of was robust prior of half, be to the approximately generated for increase year. free Our $X the $X.X as the was we an in expect now billion the flow $X.X first compared to top $X again cash flow range billion cash ME&T full-year. free $X billion we generation the in target With ME&T This billion around our generated
full-year. expect the million, we for quarter in and $XXX about was the $X.X spend billion second around to CapEx still
share As repurchases mentioned, in Jim returned about we second through dividends $X and billion quarter. the
Our remains strong. balance sheet
We slightly an with yields liquid enterprise on marketable have additional we balance $X.X also securities hold cash ample $X billion of in improve cash. liquidity an billion, longer-dated and to that
the share compared Slide higher of to second high and turning total sales In I Now some the assumptions last third third half quarter. as anticipate revenues users second be the Keep for XX. second the will level second basis, we half the half the of last to stronger expect comparative price we XXXX, positive and in We from year. and year. in realization on both lap we mind price to a will saw sales onwards to that the quarter half. start
a is in the half businesses, just changes by make own year, because XXXX. a impacted second closely half which and expectation production few inventories. of Dealers about more We decisions inventories typical, typical the second of not this be their hold. levels. our the inventory will last sales their in they of independent level spend with dealer impacts moments our inventories work in I of they to reduction obviously dealers as dealer want around them Caterpillar talking increased versus are
the with are levels we dealers of mentioned, are very comfortable Jim that holding. As inventory
customer dealer orders. in inventory This is dealer Keep by products. arises over Resource Transportation, that to inventory commissioning mainly different hundreds We the is of difficult XX% of talk and these backed dealers dealer certainty & In in segments, function inventory as about a Energy in firm aggregate. three segments of business from is mind it and over XXX Industries with predict different pipeline.
a availability was the this typically XX% The For products of first dealer remaining and the the Construction XX% dealers during segment. factory. from & function first inventory inventories Industries, from year. half the In in of is end year half during in increase is Transportation. and principally Industries billion Energy of user of the Industries, this Resource demand Around $X increase Construction
slight currently commissioning. in a we Industries levels this dependent the reduction in second-half, and anticipate but on Resource Energy is For Transportation,
In months typical range. holding the the dealers three around midpoint are currently four Construction Industries, of to
to Some demand. and certain earth like due increase to because to moving like dealers reduce Conversely, such strong BCP inventories dealers would the excavated availability. inventory products, levels as of would high some customer of of
we the and are in addition, these second engines In products, to third-party scheduled production during engines replace which will half. with impact Cat products certain
for the assumption of the we inventory should be Industries excavators. XXXX currently Construction at focus on dealer at enterprise slightly that is end their year. in with overall XXXX inventory planning dealers current the half Overall, expect in Our a last levels will second of versus the higher level, principal reduce
On adjusted on. you full-year target planning to at on charge profit Moving XXX profit in your be the that our basis assist adjusted operating to margins modeling anticipate to points range expected current Based top our provide slide, this of close process. we margin level. target we sales our assumptions,
total Your where should you curve enterprise the year year. will expectation margins for for on inform sales the finish this
although to two of saw levels the in the will be lower year half, the Specific we quarters this they profit the in levels, the quarters anticipate above the first ago remaining than of second we will margins operating adjusted be year. year
the supply anticipate we there half. to We we As inventory the compared first will we do and some margin that be half cost absorption as in to see sustained inventory our in the if improvement. expect headwind continue to not chain a build anticipate first half, from second did reduction
the the that in margins occurred year. magnitude the occurred the to have last as manufacturing we from spend in realization pricing we that to half year inflation should of second lap remain to half initiatives the continue strategic cost the second addition, in growth the favorable expected lower -- related outpacing increases moderate versus more favorability this is positive should that prior In be the Price from price Therefore, year. trends of ramp. have should
Now quarter. to be when higher than second let's our of third We to move the decline quarter quarter to specific third the are to that the compared sequential of on anticipate the quarter sales XXXX. typical exhibit assumptions but third to XXXX,
compared quarter. compared as anticipate normal Resource quarter. to lower we Industries, be In sales the the lumpy, can lower second Industries, second Construction expect we is In seasonal end, sales our to which slightly
We expect will the slightly compared second sales quarter. in to Energy & Transportation increase
prior adjusted level profit margins the operating to segment at margins third the stronger. versus be year, quarter margins should Specific enterprise and
However, we the do on margins to impacts compared third the lower of volume from this expect in profit lower enterprise and adjusted cost absorption. operating year second quarter quarter
We investments accelerate digital investment like in connectivity as electrification. alternative strategic to primary autonomy, ramp across will also and and spend segments fuels, our anticipate our continue we area
At typical. to level, to will the partial Industries, margin for increased the is expect Favorable second absorption. from quarter-on-quarter is investment strategic in as higher quarter This segment offset. act a Construction cost manufacturing headwind a price volume, a we largely including and initiatives costs, as compared lower realization due lower slightly
quarter in spend higher third Conversely, second We Transportation Resource to lower lower on relating compared and also manufacturing Energy to offset margins volume quarter Industries anticipate in higher strategic primarily expect third slightly we and partially the initiatives. second quarter-on-quarter. stronger compared quarter will to price costs higher realization, to be margins due by volume & the quarter,
XXX me profit our We increase margin profit be the Slide summarize. on to to to range based the XX.X%. adjusted -- now turning Now the for basis full-year margin a strong expected levels. of We targeted margin expect for with point to generated let operating close adjusted top XX, sales operating
share quarter. billion flow at was to dividends. $X full-year. now to the the billion returned of We shareholders cash billion be flow the to expect cash and ME&T $X.X through repurchases range billion top free $X free $X We ME&T robust around generation in our for
execute growth. to continue we for long-term Lastly, profitable our strategy
we'll your And with take that, questions. now
