First-quarter 2021 profit per share was USD2.77, compared with USD1.98 profit per share in the first quarter of 2020. Profit per share for both quarters included restructuring costs, while the first quarter of 2020 also included a pre-tax remeasurement gain of USD254 million, or USD0.38 per share, resulting from the settlement of a non-U.S. pension obligation. Profit for the first quarter of 2021 was USD1.530 billion, an increase of USD438 million, or 40 percent, compared with USD1.092 billion for the first quarter of 2020.

The increase was mostly due to higher sales volume. The absence of a remeasurement gain resulting from the settlement of a non-U.S. pension obligation that occurred in the first quarter of 2020 and higher selling, general and administrative (SG&A) and research and development (R&D) expenses were offset by favorable impacts from foreign exchange (gains) losses, unrealized gains (losses) on marketable securities at Insurance Services, gains (losses) on commodity hedges and a lower effective tax rate. The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense, which was reinstated in 2021.

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Response to COVID-19 and Global Business Conditions:

We continue to implement safeguards in our facilities to protect team members, including increased frequency of cleaning and disinfecting, social distancing practices and other measures consistent with specific governmental requirements and guidance from health authorities. We've offered assistance to some governments and public health authorities in the vaccine distribution process, and when vaccines become available, we are assisting in onsite vaccine distribution for employees in some of our facilities.

We continue to monitor a variety of external factors including the pandemic's recent acceleration in several overseas markets, the potential for supply chain disruptions and cost pressures. Areas of particular focus include semiconductors, transportation and raw materials. Contingency plans are being developed to minimize potential supply chain issues that may impact our ability to fully meet customer demand. While none of these factors have significantly impacted our operations in the first quarter of 2021, we will continue to monitor the situation as conditions remain fluid and evolve throughout the year.

Notes: ? Glossary of terms is included on pages 49 - 51; first occurrence of terms shown in bold italics. ? Information on non-GAAP financial measures is included on page 55.

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Consolidated Results of Operations

THREE MONTHS ENDED MARCH 31, 2021 COMPARED WITH THREE MONTHS ENDED MARCH 31, 2020

CONSOLIDATED SALES AND REVENUES

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2020 (at left) and the first quarter of 2021 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's Board of Directors and employees.

Total sales and revenues for the first quarter of 2021 were USD11.887 billion, an increase of USD1.252 billion, or 12 percent, compared with USD10.635 billion in the first quarter of 2020. The increase was primarily due to higher sales volume and favorable currency impacts related to the euro and the Australian dollar. The increase in sales volume was driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased inventories by USD700 million during the first quarter of 2021 compared to USD100 million during the first quarter of 2020.

Sales were higher across the three primary segments. Sales increased in Asia/Pacific, Latin America and EAME while sales in North America were about flat.

North America sales were about flat as the impact from changes in dealer inventories was mostly offset by unfavorable price realization and lower end-user demand for services. Dealers increased inventories more during the first quarter of 2021 than during the first quarter of 2020.

Sales increased 26 percent in Latin America due to higher end-user demand for equipment and services across most of the region, the impact of changes in dealer inventories and favorable price realization, partially offset by unfavorable currency impacts from a weaker Brazilian real. Dealers decreased inventories more during the first quarter of 2020 than during the first quarter of 2021.

EAME sales increased 13 percent due to favorable currency impacts related to the euro, higher end-user demand, the impacts from changes in dealer inventories and favorable price realization. Dealers increased inventories more during the first quarter of 2021 than during the first quarter of 2020.

Asia/Pacific sales increased 32 percent, primarily driven by China, in part due to the impact of COVID-19 on the first quarter of 2020. The increase in sales was due to the impacts from changes in dealer inventories, higher end-user demand for equipment and services and favorable currency impacts related to the Australian dollar and the Chinese yuan, partially offset by unfavorable price realization. Dealers increased inventories during the first quarter of 2021, compared with a decrease during the first quarter of 2020.

Dealers increased machine and engine inventories about USD700 million during the first quarter of 2021, compared with an increase of about USD100 million during the first quarter of 2020. Dealers are independent, and the reasons for changes in their inventory levels vary, including their expectations of future demand and product delivery times. Dealers' demand expectations take into account seasonal changes, macroeconomic conditions, machine rental rates and other factors. Delivery times can vary based on availability of product from Caterpillar factories and product distribution centers. We do not expect a significant dealer inventory increase from the first quarter in 2021.

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Sales and Revenues by Segment            First                                      Inter-    First    USD 
                                         Quarter  Sales   Price            Currency Segment / Quarter          % Change 
(Millions of dollars)                             Volume  Realization               Other              Change 
                                         2020                                                 2021 
Construction Industries..............    USD 4,306  USD 1,006 USD (23)           USD 146    USD 24      USD 5,459  USD 1,153 27% 
Resource Industries.................     2,084    132     (47)             33       14        2,216    132     6% 
Energy & Transportation.............     4,349    (41)    7                74       118       4,507    158     4% 
All Other Segment..................      109      9       -                1        11        130      21      19% 
Corporate Items and Eliminations.......  (934)    (19)    (1)                       (167)     (1,121)  (187) 
Machinery, Energy & Transportation Sales 9,914    1,087   (64)             254      -         11,191   1,277   13% 
. 
Financial Products Segment...........    814      -       -                -        (53)      761      (53)    (7%) 
Corporate Items and Eliminations......   (93)     -       -                -        28        (65)     28 
Financial Products Revenues..........    721      -       -                -        (25)      696      (25)    (3%) 
Consolidated Sales and Revenues.......   USD 10,635 USD 1,087 USD (64)           USD 254    USD (25)    USD 11,887 USD 1,252 12% 

Sales and Revenues by Geographic Region

External Sales and Total Sales and

North America Latin America EAME Asia/Pacific Revenues Inter-Segment Revenues


(Millions of dollars)   USD       %    USD       % Chg  USD       % Chg USD       %    USD        %    USD       %    USD        % 
                                Chg                                       Chg           Chg          Chg           Chg 
First Quarter 2021 
 
Construction Industries USD 2,126 2%   USD 392   48%    USD 1,081 22%   USD 1,842 72%  USD 5,441  26%  USD 18    400% USD 5,459  27% 
......... 
Resource Industries     657     (6%) 405     27%    474     20%   561     (1%) 2,097    6%   119     13%  2,216    6% 
........... 
Energy &                1,782   3%   256     3%     1,093   4%    527     (9%) 3,658    1%   849     16%  4,507    4% 
Transportation........ 
All Other Segment       13      160% -       (100%) 3       (73%) 22      120% 38       36%  92      14%  130      19% 
............ 
Corporate Items and     (39)         -              -             (4)          (43)          (1,078)      (1,121) 
Eliminations.. 
Machinery, Energy & 
Transportation Sales    4,539   1%   1,053   26%    2,651   13%   2,948   32%  11,191   13%  -       -    11,191   13% 
.......... 
Financial Products      476     (9%) 62      (11%)  100     (2%)  123     5%   761 1    (7%) -       -    761      (7%) 
Segment....... 
Corporate Items and     (24)         (11)           (8)           (22)         (65)          -            (65) 
Eliminations.. 
Financial Products      452     (4%) 51      (12%)  92      (1%)  101     2%   696      (3%) -       -    696      (3%) 
Revenues.... 
Consolidated Sales and  USD 4,991 -%   USD 1,104 24%    USD 2,743 13%   USD 3,049 31%  USD 11,887 12%  USD -     -    USD 11,887 12% 
Revenues.. 
First Quarter 2020 
Construction Industries USD 2,085      USD 265          USD 889         USD 1,073      USD 4,312       USD (6)        USD 4,306 
......... 
Resource Industries     696          320            395           568          1,979         105          2,084 
........... 
Energy &                1,738        249            1,053         578          3,618         731          4,349 
Transportation........ 
All Other Segment       5            2              11            10           28            81           109 
............ 
Corporate Items and     (15)         (2)            (4)           (2)          (23)          (911)        (934) 
Eliminations.. 
Machinery, Energy & 

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