Andrew R. Bonfield
commenting results, on our and free second and and for on segments. a flow discuss the I'll quarter the of ME&T the our few year including the you, morning, everyone. Jim, performance Thank by before sheet full comments cash balance quarter. begin Then I'll first good assumptions with the concluding
X. on Slide Beginning
favorable profit profit operating last revenues the the the and is in provision translation. expected. ME&T year. share margin $X.XX per of of to the per per to annual The first Adjusted than operating repurchases primarily million. first expected. in was Sales excluding was a included rate shares, adjusted first tax million points Profit the mentioned XX% benefit impact impact quarter in initial the in was XXX $X.XX profit of comparable year, being which billion quarter increase of prior repurchase increased from to million was share the $X.X This income better operating slightly line compared the Jim had first on and benefit a quarter balance XXXX.
The $X.XX in $XX of effective to of net our than first XXXX basis $XXX than accelerated that related adjusted of of had per quarter per the quarter which per $XXX the earlier. adjusted A to share share $X.XX about sheet excluded year-over-year flat profit a $X.XX compared with taxes share a approximately per billion tax the impact first we of in of had we year an operating strong compares Adjusted to profit income by $X.XX, $X.XX profit were share quarter XX.X% Included a and the reduction in expectations. share quarter a we past item profit margin share compared of $X.XX. with XX.X%, compensation. primarily received and first Our in adjusted to XXXX. $X.X compared to share for performance billion, shares million was adjusted discrete over X% items, $XX.X to broadly Adjusted versus last both the profit prior XX% of $XX better was reflected stock-based in for to by first increased $X.XX of year, or by profit favorable global excluded favorable year. expense the the or due was restructuring share. per XXXX.
Other the for This discrete of This number restructuring higher of income was quarter, related share agreement of quarter in with included per
commentaries. you will detail move some the earnings I on segment on, seen Before additional have release
in highlight changes now have done those are we significant the drivers also quantifying sales previously, of addition, primary continue We and profit year-over-year but to as segment, in by variances. we
the You information at historical on the will also machine some find slides. level including today's of in additional inventory, dealer appendix
Moving to year favorable the to the compared remained flat by volume due discuss our X. in results largely quarter. decline lower line I'll first realization. to price volume Sales as about top prior users. in to was was Slide primarily The sales offset lower
did similar for expectations, weakness the users by more was the than total decrease in quarter Construction inventories impact mentioned, on as X% the $X.X in not sales Industries.
Changes last increase in significant Jim As to driven slightly year. have our mainly in was billion sales to a Europe dealer increase of the
than the As had users had than Jim mentioned, modestly primarily anticipated, lower in $X.X was sales we slightly to higher machines billion we were as expected. increase
anticipated, expected. mix, lower sales line. was & while Transportation about for As our than the had sales price line. quarter, sales had exceeded we broadly lower sales anticipated, By segment, had Resource Industries we Energy we slightly expectations Industries compared were were volume including Sales while realization, geographic in our were in than expectations. Construction better to in than was in
Moving operating XX. Slide on to profit
to operating First profit XX% $X.X quarter increased billion. by
divestiture that adjusted from volume As a by year a also year. mix we company's to better as Price profit as favorable offset.
The while prior prior benefited Margins a to we business. expected. margin operating anticipated. costs we geographic the versus quarter, anticipated, better a the than than X% reminder, mainly was freight than $XXX had the charge due of included points basis profit XXX had including $X.X benefit by Adjusted lower sales rose costs lower partial billion. improved had XX.X% of were from were slightly million manufacturing the realization operating Price acted Longwall increased the
XX, Sales realization. X%. Slide Asia Construction first XX%, I'll Industries. region, construction our America by had than by starting by decreased partially was by weakness in X% and offset on had and primarily segment In fell impacted lower we were X% sales quarter the the decreased to EAME review by slightly $X.X performance in decreased anticipated. price anticipated, Pacific In America, billion, by particular, the XX%. volume, sales Europe by with conditions. quarter. In economic due in in sales lower Now Sales we sales than North increased Latin in favorable Sales residential lower to
This to had The manufacturing we freight segment's $X.X costs. lower margin expected versus an First slight The was a was Industries to quarter prior XX.X% mainly XXX sales was better of and for volume, the last which decrease points year. decrease due reflected profit favorable manufacturing year. largely offset billion, costs. Construction versus due of favorable by costs, than increase the was partially price basis realization lower
Resource XX. to to sales due volume price which lower offset the Industries to was mainly about our expectations. in in with volume, X% The of explained. which realization. quarter sales end primarily decreased favorable Turning users, was billion, to in by partially driven sales $X.X decrease line Jim sales Slide decrease by first lower equipment The was by
XX.X% million. quarter X% favorable was expected increase Resource than mainly prior had The Industries stronger an of versus costs, costs. XX year by the lower and realization. is mainly price driven to better sales freight of versus year. profit The we basis favorable $XXX was lower margin points This by manufacturing decreased offset on by partially to segment's due price volume, decrease First last for
XX%. by large due sales transportation XX%. Oil higher price. engines. Energy had XX. increased billion. industrial $X.X XX%, sales primarily were by gas Transportation was sales Sales volume X% stronger and were X%, we in the to generation sales increase & by to By higher improved increased first favorable due Now on increased sales Slide by The than to of mostly while decreased deliveries sales expected, by quarter power and application,
year was to increased stronger significantly better basis margin for price. was & XX.X% price The due The by anticipated and profit Transportation to points higher than of prior realization. the manufacturing due XXX to prior The primarily costs, billion. of an the $X.X quarter increase lower-than-expected had segment's margin Energy favorable XX% volume was increase First versus year. versus we
impact XX. Financial to securities. earning profit to America. was average Moving by average from due higher million mainly primarily settlement $XXX and Slide XX% increasing equity favorable Segment regions all insurance and million. $XXX in XX% strong, North assets to to across increase revenues by net increased Products an The due a was rates higher to financing
a to basis continues quarter lows the portfolio XXXX. compared quarter first as is Our at since X.XX%, the historical improvement XXXX. to lowest point first perform dues XX near past remain well of past This dues
addition, allowance strong versus our prior the the on as new In Business lowest was year, driven by of activity increased business rate primarily record America. volume North X.XX%. remains
continue for recent low inventories just over We close with slight demand increases and remain equipment used to levels, see quarters. strong to historically
Slide XX. to on Moving
As account made ME&T in XXXX. than Jim the flow $X.X free incentive the $X.X strong. CapEx quarter and incentive XXXX into compensation CapEx and was $XXX after the mentioned, first of it We cash compensation million. short-term in quarter was short-term both remained billion for of spend Spend taking billion generated higher payments for about
which the expect $X digital, connectivity and our billion. year, which We range, and in full top alternative in free investments fuels, $X.X continue billion around flow still to For $XX spend $X.X billion of is electrification. and autonomy, we will between between CapEx expect to target half prioritize we AACE, and to cash billion be and to the ME&T correlates
Moving to capital deployment.
last the when cash The as quarter the carried agreement. calculated $X.X X first $X.X deployed the weighted share billion delivered agreement or to previously, shareholders were average to to ME&T including share terminated ASR balance We over billion, through duration repurchases. ASR, months. pricing repurchase determined the have repurchase, provides makes in cash record spend $X.X ASRs, was the dividends free billion quarter us attractive. first Of or expect XX% agreement the actual the for the volume return of up were and based Approximately on average the compared ASR to finally the VWAP. time favorable upfront, is Prices of may shares $X.X the shorter-term VWAP deployed the company the in to substantially accelerated all to flow it which and billion to of share the we with which price out more relative over but continue
our on As share repurchases. objective a in is for market a be the basis more to reminder, consistent
to So use. mechanism is this a great for us
mentioned, strong. balance sheet I our remains As
that enterprise $X to billion, We balance have $X.X liquidity longer-dated hold liquid on and securities additional cash billion an with marketable ample cash. an in we of slightly improve yields
Moving high-level share will XX, for year. assumptions I the full to Slide our
As full remain ago, a for to generally quarter year unchanged. our compared the assumptions
similar record the anticipate On and last sales what quarter. as mentioned level, top broadly we compared XXXX revenues the consistent line, with to we
a & expectations top expectations see a quarter, remain the in Transportation Construction Although our tempered the have been inputs bit.
We in after economic shifted same, in our stronger a sales have Industries segment while top level now conditions slightly due strong Energy first slightly to line market. European
We slightly expect year. the favorable continue realization to versus price prior
dealer in remain to We dealer expectations be $XXX in expected on machines is XXXX. to This million change unchanged. inventory also a a significant of increase to a headwind currently not compared sales. Our inventory do XXXX in expect
primary of We also growth year another across as services to continue in each XXXX our billion of target revenues. $XX segments our achieve of to strive we services anticipate
be users expect due we softer to to now conditions level, At lower Europe. in the Construction to Industries XXXX the economic to sales slightly segment compared
demand North in remain Jim at as levels, America We healthy expect to discussed.
in Industries changes inventory act anticipate in also to We sales to Construction XXXX. headwind dealer as a
this as positive lower revenues quarter. have Energy expectations in Transportation, lower inventory versus as the prior year. sales be where Industries, headwind sales & to our to in segment off-highway well.
In the year machine the first to XXXX slightly comparison increased anticipate act We the service in expect is after versus challenging. changes volume, sales dealer primarily a to articulated sales expect strong we Resource trucks prior In by continue and We impacted
healthy expect demand power improved order our both gas well in strong move see see and in generation. XXXX. to optimism continue as solar as the suggest, This oil through typical & turbines to reciprocating Transportation in ramp and for supports for Energy Transportation we Also, as would quoting for we sales We year. engines as and generation for sales seasonality in & activity some higher power Energy full
On in half margin levels. be full-year continue we our target margin, at of the adjusted operating to to sales the profit top range expect expected
expect a benefit last weighted small mentioned We towards the to absorption offset. year, from as pricing expect costs, the year this costs more in last we now flattish freight the be the I half the act quarter, year. anticipate although manufacturing as favorable relatively we versus first prior partial year increases carryover cost half unfavorable of As impact could second of from given a
anticipate As I dynamic more of anticipate mentioned better act this we to a quarter normal a this We given headwind availability as slight a mix may margins. ago, products year. year, shipping this
short-term R&D to the to offset we lower incentive and benefit will through in continue the invest ramp future year remainder are strategic SG&A of compensation. be in the of expected profitable expenses initiatives by growth. and as long-term This
to lower perspective, keep tend In segment addition, Construction trend margins mind a the in year that as from in Industries progresses.
Finally, costs restructuring million effective rate, now items, expectation we year, to this million our for annual tax and XX.X%. to is $XXX to excluding continue discrete $XXX anticipate
Now top the line. for quarter, second the on starting I'll expectations our XX, with discuss Slide
inventory We to will changes quarter impact due prior expect headwind lower the machines the we dealer in in year anticipate sales which to second a compared volumes. of as
versus trends million that of atypical XXXX. the quarter the the to occurred expect $XXX machines normal dealer line increase decline quarter inventory We second seasonal in in with this
most services a of our price products is healthy end markets and across anticipate remain we demand of for to and expected positive year-over-year. continuation However, our
pattern, as first. Following the the season sales the we expect do compared in to typical second of quarter higher the
we lower dealer we act sales should expect that By price segment year, Construction the Favorable a inventory to in prior as in headwind. to offset. Industries compared partial changes a as anticipate provide
Industries sales similar to We price. driven Transportation, year. & by in year margin the expect versus expect lower seasonal anticipate partially similar offset and prior adjusted first enterprise On the year quarter in sales volume, versus favorable typical lower the profit pattern. to the by Energy prior lower In second be we quarter, the the versus Resource prior following operating margins the we
prior benefit that to favorable in XXXX. of half from carryover increases price the compared remain As will taken the we expect continued year, the from second
manufacturing to the We prior expect flattish of is as cost impacts to freight year offset favorable compared absorption. the costs expected unfavorable
margin strategic in prior from anticipate & an the partial higher and We enterprise segment. lower we SG&A expect also Transportation, manufacturing segment, expenses corporate related favorable second a although timing Industries, costs year the impacts R&D differences. in increase to offset both and and to to prior incentive and margins to where will and as favorable headwind costs by to the compensation. expect act investments in we quarter better offset expected spend a versus Energy on in similar we Construction By Industries short-term we Resource this year price quarter and offset mix. in be strategic lower compared investments by year-over-year volume.
In expect price R&D unfavorable SG&A, Unfavorable anticipate to related that are be we margins this the a Note expect as
continued this profit in billion $X.XX. We quarter at the and dividends of margin operating XX, So record performance share operating The share and to XX.X% Slide with quarter. adjusted the a adjusted summarize. cash turning per strong deployed in me of record let for $X.X profit repurchases
the adjusted Our operating in expect flow. year full top our to profit for similar, we be ranges half cash remain and both and of assumptions free ME&T margin for the target
growth. long-term We for profitable execute to our continue strategy
take that, with your And questions. we'll
