UPDATE: Caterpillar (CAT) reaffirms adjusted operating margin targets, approves $15B buyback

May 17, 2022 8:32 AM EDT

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(Updated - May 17, 2022 8:34 AM EDT)

Caterpillar Inc. (NYSE: CAT) is hosting its Investor Day centered around the theme of services, technology and sustainability. The leadership team will provide details on the company's achievements, priorities and opportunities including:

  • Executing strategy through operational excellence, expanded offerings, services and sustainability
  • Achieved Investor Day targets for adjusted operating profit margin and generated strong ME&T free cash flow
  • Expecting higher long-term sales growth as energy transition expands Caterpillar's addressable market
  • Reaffirming adjusted operating margin targets while investing in technology
  • ME&T free cash flow to increase with sales growth

"Our global team has done an excellent job executing our strategy for long-term profitable growth," said Caterpillar Chairman & CEO, Jim Umpleby. "Since 2017, we've achieved our adjusted operating profit margin targets every year and generated $26 billion of free cash flow over that time. We remain committed to continuing our strong financial performance."

Umpleby added, "We believe services and the energy transition represent significant opportunities for Caterpillar to drive long-term profitable growth and shareholder value, as we help our customers build a better, more sustainable world."

The company will also discuss its commitment to return substantially all free cash flow to shareholders over time, illustrated by the board of directors' recent approval of a new authorization to repurchase up to $15 billion of common stock. It is effective August 1, 2022, with no expiration date.

A video webcast of the meeting will begin at 10:25 a.m. CDT. A replay of the webcast, presentations and a transcript will be available at https://investors.caterpillar.com/events-presentations/event-details/2022/Caterpillars-2022-Investor-Day/default.aspx.

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