Caterpillar Inc. : Files Form 8-K 1Q 2021 Earnings -3-

Resource Industries' total sales were USD2.216 billion in the first quarter of 2021, an increase of USD132 million, or 6%, compared with USD2.084 billion in the first quarter of 2020. The increase was due to higher sales volume driven by the impacts of changes in dealer inventories, higher end-user demand for equipment and aftermarket parts and favorable currency impact from the Australian dollar, partially offset by unfavorable price realization. Dealers decreased inventories during the first quarter of 2020, compared to remaining about flat during the first quarter of 2021. End-user demand was higher in mining, offset by lower end-user demand in heavy construction and quarry and aggregates.

Resource Industries' profit was USD328 million in the first quarter of 2021, an increase of USD24 million, or 8%, compared with USD304 million in the first quarter of 2020. The increase was mainly due to favorable manufacturing costs and higher sales volume, partially offset by unfavorable price realization and higher SG&A/R&D expenses. Favorable manufacturing costs reflected favorable cost absorption, lower warranty expense and favorable variable labor and burden. Cost absorption was favorable as company inventory increased more in the first quarter of 2021 than in the first quarter of 2020. The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense, partially offset by other cost-reduction actions.

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ENERGY & TRANSPORTATION

(Millions of dollars)

Segment Sales

First Quarter Sales Price Inter- First Quarter USD %

2020 Volume Realization Currency Segment 2021 Change Change

Total Sales USD 4,349 USD (41) USD 7 USD 74 USD 118 USD 4,507 USD 158 4%

Sales by Application

First Quarter First Quarter USD %

2021 2020 Change Change

Oil and Gas       USD 915   USD 861   USD 54  6% 
Power Generation  963     854     109   13% 
Industrial        813     801     12    1% 
Transportation    967     1,102   (135) (12%) 
External Sales    3,658   3,618   40    1% 
Inter-segment     849     731     118   16% 
Total Sales       USD 4,507 USD 4,349 USD 158 4% 

Segment Profit

First Quarter First Quarter %

2021 2020 Change Change

Segment Profit USD 666 USD 602 USD 64 11%

Segment Profit Margin 14.8 % 13.8 % 1.0 pts

Energy & Transportation's total sales were USD4.507 billion in the first quarter of 2021, an increase of USD158 million, or 4%, compared with USD4.349 billion in the first quarter of 2020. Sales growth was driven by Power Generation and Oil and Gas, partially offset by a decrease in Transportation. Inter-segment sales also increased. ? Oil and Gas - Sales increased mainly due to higher sales of reciprocating engine aftermarket parts primarily driven

by North America and EAME. ? Power Generation - Sales increased due to turbines, turbine-related services and large reciprocating engine

applications, including data centers. ? Industrial - Sales were about flat. ? Transportation - Sales declined in rail due to lower deliveries of locomotives and related services, primarily in

North America, and in marine.

Energy & Transportation's profit was USD666 million in the first quarter of 2021, an increase of USD64 million, or 11%, compared with USD602 million in the first quarter of 2020. The increase was due to higher sales volume including inter-segment sales and favorable variable manufacturing costs, partially offset by higher SG&A/R&D expenses. Favorable variable manufacturing costs reflected lower material costs and variable labor and burden. The increase in SG&A/R&D expenses was driven by higher short-term compensation expense, partially offset by other cost reduction actions.

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FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

Revenues by Geographic Region

                First Quarter First Quarter USD      % 
                                                   Change 
                2021          2020          Change 
North America   USD 476         USD 525         USD (49) (9%) 
Latin America   62            70            (8)    (11%) 
EAME            100           102           (2)    (2%) 
Asia/Pacific    123           117           6      5% 
Total Revenues  USD 761         USD 814         USD (53) (7%) 
Segment Profit 
                First Quarter First Quarter        % 
                2021          2020          Change Change 
Segment Profit  USD 244         USD 105         USD 139  132% 

Financial Products' segment revenues were USD761 million in the first quarter of 2021, a decrease of USD53 million, or 7%, from the first quarter of 2020. The decrease was primarily because of lower average financing rates and lower average earning assets in North America.

Financial Products' segment profit was USD244 million in the first quarter of 2021, compared with USD105 million in the first quarter of 2020. The increase was primarily due to a favorable impact from equity securities in Insurance Services and lower provision for credit losses at Cat Financial, partially offset by an increase in SG&A expenses primarily due to higher incentive compensation. The impact of lower average financing rates was offset by lower interest expense.

At the end of the first quarter of 2021, past dues at Cat Financial were 2.90%, compared with 4.13% at the end of the first quarter of 2020. Past dues decreased across all portfolio segments as global markets generally improved. Write-offs, net of recoveries, were USD24 million for the first quarter of 2021, compared with USD30 million for the first quarter of 2020. As of March 31, 2021, Cat Financial's allowance for credit losses totaled USD441 million, or 1.64% of finance receivables, compared with USD479 million, or 1.77% of finance receivables at December 31, 2020.

Corporate Items and Eliminations

Expense for corporate items and eliminations was USD387 million in the first quarter of 2021, an increase of USD222 million from the first quarter of 2020, primarily due to an unfavorable change in fair value adjustments related to deferred compensation plans and segment reporting methodology differences.

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Notes i. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/

default.aspx. ii. End-user demand is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on

Thursday, April 29, 2021. iii. Information on non-GAAP financial measures is included in the appendix on page 12. iv. Some amounts within this report are rounded to the millions or billions and may not add. v. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m.

Central Time on Thursday, April 29, 2021, to discuss its 2021 first-quarter results. The accompanying slides will

be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/

events-presentations/default.aspx.

About Caterpillar

With 2020 sales and revenues of USD41.7 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Since 1925, we've been driving sustainable progress and helping customers build a better world through innovative products and services. Throughout the product life cycle, we offer services built on cutting-edge technology and decades of product expertise. These products and services, backed by our global dealer network, provide exceptional value to help our customers succeed. We do business on every continent, principally operating through three primary segments - Construction Industries, Resource Industries, and Energy & Transportation - and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/social-media.

Caterpillar's latest financial results are also available online:

https://investors.caterpillar.com/overview/default.aspx

https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)

Caterpillar investor relations contact: Jennifer Driscoll, [phone] or Driscoll [e-mail]

Caterpillar media contact: Kate Kenny, [phone] or Kenny [e-mail]

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Forward-Looking Statements

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

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