“We continue to anticipate CapEx spend of around $2.5 billion for the year.”

In context

“lowest second quarter in over 25 years. The allowance rate was 0.94%, remaining near historic lows. Business activity at Cat Financial remains healthy. Retail credit applications and retail new business volume both grew by 5% versus the prior year. Retail new business volume is at its highest level for a second quarter in over 10 years, reflecting the attractiveness of our sales merchandising programs. In addition, used equipment inventory levels remain low and conversion rates remain above historical averages, as customers choose to buy equipment at the end of their lease term. Moving on to Slide 13. ME&T free cash flow was about $2.4 billion in the second quarter approximately $100 million lower than the prior year, as stronger operating cash was more than offset by higher CapEx spend. We continue to anticipate CapEx spend of around $2.5 billion for the year. Moving to capital deployment. We deployed about $1.5 billion to shareholders in the second quarter. Share repurchase spend accounted for about $800 million, with the remainder reflecting our quarterly dividend payment. In June, we announced a 7% dividend increase, our fifth consecutive year with a high single-digit quarterly increase. Our balance sheet and liquidity positions remain strong. During the quarter, we issued bonds totaling $2 billion at attractive financing rates, and net debt in ME&T was $5.2 billion. We ended the quarter with an enterprise cash balance of $5.4 billion. In addition, we held $1.2 billion in slightly longer-dated liquid marketable securities to improve yields on that cash. Now on Slide 14, let me start with a few comments on the full year. We are increasingly o”