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backlog over a number of years, it's still elevated compared to where it normally would be
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2023 Q3
16 Jan 24
backlog as a percentage of revenue would come down to more normal levels
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2023 Q3
16 Jan 24
Our backlog should come down.
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2023 Q3
16 Jan 24
as supply conditions continue to improve, we expect lead times to come down, which should have a corresponding impact on our backlog
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2023 Q3
16 Jan 24
Our backlog is higher than it normally would be because our lead times are higher than I'd like them to be
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2023 Q3
16 Jan 24
we continue to see strength in most of our end markets
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2023 Q3
16 Jan 24
we now expect our full year 2023 results to be better than we anticipated during our last earnings call
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2023 Q3
16 Jan 24
Although our backlog decline is expected, it still remains elevated as a percentage of revenues compared to historic levels.
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2023 Q3
16 Jan 24
we ended the quarter with a healthy backlog of $28.1 billion
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2023 Q3
16 Jan 24
Dealers and customers can wait longer to place orders, which has led to a moderation in order rates as expected.
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2023 Q3
16 Jan 24
In Resource Industries, we continue to see a high level of quoting activity. In mining, customer product utilization remains high. The number of parked trucks remains low, and the age of the fleet remains elevated. Order rates are slightly lower than we expected at this time, reflecting continued capital discipline by our customers.
We continue to believe the energy transition will support increased commodity demand over time, expanding our total addressable market and providing further opportunities for long-term profitable growth.
esources
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2023 Q3
29 Nov 23
This positive operating performance increases our expectation for ME&T free cash flow, which we now expect will exceed the $4 billion to $8 billion target range for the full year. This outlook for the adjusted operating profit margin and ME&T free cash flow reflects healthy customer demand and our strong operating performance.
me& t fcf
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2023 Q3
29 Nov 23
In addition, we have seen a reduction in dealer orders for building construction products, which we anticipated due to the changeover to Cat engines that we previously discussed, and for excavation in anticipation of dealers reducing their inventories in the fourth quarter.
construction weaker -- engines trabsition/dealer inventory
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2023 Q3
29 Nov 23
There is some concern about the potential impact of a commercial real estate slowdown. We estimate that North American commercial real estate accounts for about 1% of total construction industry sales. Any slowdown related to this sector should not have a significant impact on Construction Industries.
comm real estate
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2023 Q1
7 Jul 23
We expect growth in nonresidential construction in North America due to the positive impact of government-related infrastructure investments and a healthy pipeline of construction projects.
noresi cons
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2023 Q1
7 Jul 23
Hey, good morning, everybody. Good morning. I just wanted to follow up on that last question. On this – there’s been a lot of questions and answers about the supply chain. But can you just maybe share what your partners are telling you about 2023? I understand you may want to handicap what they’re telling you, but are they directionally telling you things are going to get better in the first half? Is it second half? Are you getting any indications to the supply chain that things should be moving in the right direction for next year? Thank you.
Jim Umpleby
Yes. Honestly, it is a mixed bag. Caterpillar, as you know, has a very diverse product line, and we have a very diverse group of suppliers, thousands of suppliers around the world, and there isn’t one answer there.
So we continue to see semiconductor availability challenges are impacting things like engine control modules, which have an impact on many of our products.
So that’s still a challenge even though, certainly, we follow what happens in the semiconductor industry, and we’ve read about some of the improvements for the ones that we use. And again, those that go into ECMs, that’s still a bit of a challenge. My sense is that – so many suppliers that are struggling now are quite reluctant to make any kind of predictions because many people have made predictions since we’ve gone into the situation that have proved to be wrong about improvement.
So again, what we’re doing is working with them as closely as we can to help them get as much supply out as they can. And as we mentioned earlier, to try to mitigate the impact of those shortages in our factories and that’s really our focus.
not much colour on supply chain visibility
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2022 Q3
21 Nov 22
It’s not just how the process works. It is actually labor related. And part of that is obviously in an environment where we still see strong demand signals.
supply chain etc
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2022 Q3
21 Nov 22
So we’ve demonstrated the ability to take action when we need to take action. Having said that, as we sit here today, we continue to see healthy demand across most of our end markets. I mean we have strong orders.
Our dealer inventory remains towards the low end of the typical range.
So again, we have demonstrated the ability to have a flexible cost structure and direct quickly when we need to. Think about 2020 a year when COVID hit, we had a pandemic induced significant decline in our sales. We still met our margin targets that year.
flexible cost structure
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2022 Q3
21 Nov 22
We have talked about some softening there, but one of the things to keep in mind is, of course, that residential only represents about 25% of CI sales and the rest is non-residential. And non-residential remains more resilient due to – for a whole variety of subjects and certainly, they’re more reasoning to rate increases, just to do capital planning cycles. Think about all the investments that are being made by governments around infrastructure, so that helps as well. But honestly, I don’t have a good answer for your question in terms of how this compares to previous slowing in residential. Again, there’s lots of predictions as to how that will play over the next few years. But again, demand for our products in CI at a macro level still remains quite robust.
resi vs non resi
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2022 Q3
21 Nov 22
any move to further renewables is benefits us and particularly in our mining business, again as a result of the increased need for commodities in order to help with that transition.
So ultimately, that does have benefits. Because the other thing just to remind you is there are some infrastructure initiatives in Europe which are obviously helping to keep some level of demand going
renewabkes and infra spending help
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2022 Q3
21 Nov 22