Caterpillar, Inc.

We'll also make assumptions that could cause our actual results to be different than the information we're sharing with you on this call. Please refer to our recent SEC filings in the forward-looking statements reminder in the news release for details on factors that, individually or in aggregate, could cause our actual results to vary materially from our forecast. A detailed discussion of the many factors we believe may have a material effect on our business on an ongoing basis is contained in our SEC filings. On today's call, we'll also refer to non-GAAP numbers. For reconciliation of any non-GAAP numbers to the appropriate U.S. GAAP numbers, please see the appendix of the earnings call slides.

Now, let's turn to slide three and turn to the earnings call slides. quarter, we achieved higher adjusted operating profit margins, record adjusted profit per share, and generated a perspective about our performance in the quarter. We'll provide an update on our full year expect this increased in the quarter our adjusted profit margin was better than we expected Move to 22. Move to 22. First step results.

year in part due to our latest assumptions for dealer inventory principally resource industries overall sales to users and construction industries are running slightly lower than we anticipated partially offset by stronger than expected sales in energy and transportation service revenues continue to grow although sales and revenues have been marginally below our expectations adjusted operating profit margins have been stronger than we anticipated. Earlier in the year, we expected our adjusted operating profit margin to be in the top half of the target range at the core of sales. operating profit margins to be better than we previously anticipated, or about flat to the second half of 2023, which Andrew will describe. The strength of our performance to date and our improved second half adjusted operating profit margin expectations give us confidence to guide above our target range. Overall, our expectations for a full year adjusted operating profit and adjusted profit per share are now higher than it was during our last earnings call. We also anticipate that MENT free cash flow will remain in the top half of the free cash flow target range. Turning to slide four and our second quarter results. In the second quarter of 2024, sales and revenues declined 4% to $16.7 billion. Sales volume declined slightly more than we expected, while price realization, including geographic mix, was better than we anticipated.