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Caterpillar Inc.
Caterpillar Inc.: Exhibit 99.1 to Form 8-K Earnings Release dated 30 July 2018
01-Aug-2018 / 17:24 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Exhibit 99.1
Caterpillar Inc.
2Q 2018 Earnings Release
July 30, 2018
FOR IMMEDIATE RELEASE
Caterpillar Reports Second-Quarter 2018 Results
Record Second-Quarter Profit Per Share; Raised Full-Year Outlook on Continued Strength in End
Markets
($ in billions except profit per share)
Second 2018 Quarter
2017
Sales and Revenues $14.0 $11.3
Profit Per Share $2.82 $1.35
Adjusted Profit Per Share $2.97 $1.49
DEERFIELD, Ill. - Caterpillar Inc. (NYSE: CAT) today announced second-quarter 2018 sales and
revenues of $14.0 billion, compared with $11.3 billion in the second quarter of 2017, a 24
percent increase. Second-quarter 2018 profit per share of $2.82 was a second-quarter record.
Profit per share was $1.35 in the second quarter of 2017. Adjusted profit per share in the
second quarter of 2018 was $2.97, compared with second-quarter 2017 adjusted profit per share
of $1.49.
During the second quarter of 2018, Machinery, Energy & Transportation (ME&T) operating cash
flow was $2.1 billion, and the company repurchased $750 million of Caterpillar common stock. In
June 2018, the board of directors approved an increase to the quarterly dividend of 10 percent
to $0.86 per share. The second quarter of 2018 ended with an enterprise cash balance of $8.7
billion.
"Caterpillar delivered record second-quarter profit per share," said Caterpillar CEO Jim
Umpleby. "Our team is doing a great job executing our strategy for profitable growth, focusing
on operational excellence, expanded offerings and services."
2018 Outlook
The company is raising its 2018 profit per share outlook to a range of $10.50 to $11.50.
Excluding restructuring costs of about $400 million, the company expects adjusted profit per
share to be in a range of $11.00 to $12.00. The prior profit per share outlook range was $9.75
to $10.75, and the adjusted profit per share outlook range was $10.25 to $11.25.
"Based on outstanding results in the first half of the year and continued strength in many of
our end markets, Caterpillar is again raising our profit outlook for 2018. We remain focused on
operational excellence, cost discipline and investing for long-term profitable growth," said
Umpleby.
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Sales and revenues - Most end markets continue to improve, order rates are healthy and the
backlog remained solid in the quarter. For certain applications, particularly in oil and gas
and mining, the company is seeing strong demand and taking orders for delivery well into 2019.
Operating profit - The company is raising the outlook range primarily due to the continued
strength in many end markets. Recently imposed tariffs are expected to impact material costs in
the second half of the year by approximately $100 million to $200 million, and the company
expects supply chain challenges to continue to pressure freight costs. However, the company
intends to largely offset these impacts through announced mid-year price increases and using
the Operating & Execution Model to further drive operational excellence and structural cost
discipline.
The outlook does not include a mark-to-market gain or loss for remeasurement of pension and
other postemployment benefit (OPEB) plans, changes to provisional estimates recorded in 2017
for U.S. tax reform, or any impact from future geopolitical risks, including increased trade
restrictions above those currently in place.
Share Repurchase; Authorization for New $10 Billion Share Repurchase Program
In January 2014, the board of directors authorized the repurchase of $10.0 billion of
Caterpillar common stock. The current program expires at the end of this year. Under this
authorization, the company repurchased $1.25 billion in common stock in the first half of 2018,
of which $750 million was repurchased in the second quarter. As of June 30, 2018, $4.2 billion
remained on the current authorization. The company currently expects share repurchases during
the second half of 2018 to be in a similar range as the first half, but the amount could vary
depending upon market conditions and investing priorities. Aligned with the cash deployment
strategy, the company plans to be in the market for share repurchases on a fairly consistent
basis.
In July 2018, the board of directors authorized the repurchase of up to $10.0 billion of
Caterpillar common stock effective January 1, 2019, with no expiration date.
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Notes:
? Glossary of terms is included on pages 14-15; first occurrence of terms shown in bold
italics.
? Information on non-GAAP financial measures is included on page 16.
? Caterpillar will conduct a teleconference and live webcast, with a slide presentation,
beginning at 10 a.m. Central Time on Monday, July 30, 2018, to discuss its 2018 second-quarter
financial results. The accompanying slides will be available before the webcast on the
Caterpillar website at http://www.caterpillar.com/investors/events-and-presentations. [1]
About Caterpillar:
For more than 90 years, Caterpillar Inc. has been making sustainable progress possible and
driving positive change on every continent. Customers turn to Caterpillar to help them develop
infrastructure, energy and natural resource assets. With 2017 sales and revenues of $45.462
billion, Caterpillar is the world's leading manufacturer of construction and mining equipment,
diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The
company principally operates through its three primary segments - Construction Industries,
Resource Industries and Energy & Transportation - and also provides financing and related
services through its Financial Products segment. For more information, visit caterpillar.com
[2]. To connect with us on social media, visit caterpillar.com/social-media. [3]
Caterpillar contact: Corrie Scott, 224-551-4133 (Office), 808-351-3865 (Mobile) or [4] Scott
Corrie@cat.com
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," "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.
Caterpillar's actual results may differ materially from those described or implied in our
forward-looking statements based on a number of factors, including, but not limited to: (i)
global and regional economic conditions and economic conditions in the industries we serve;
(ii) commodity price changes, material price increases, fluctuations in demand for our products
or significant shortages of material; (iii) government monetary or fiscal policies; (iv)
political and economic risks, commercial instability and events beyond our control in the
countries in which we operate; (v) international trade policies and their impact on demand for
our products and our competitive position, including the imposition of new tariffs or changes
in existing tariff rates; (vi) our ability to develop, produce and market quality products that
meet our customers' needs; (vii) the impact of the highly competitive environment in which we
operate on our sales and pricing; (viii) information technology security threats and computer
crime; (ix) additional restructuring costs or a failure to realize anticipated savings or
benefits from past or future cost reduction actions; (x) failure to realize all of the
anticipated benefits from initiatives to increase our productivity, efficiency and cash flow
and to reduce costs; (xi) inventory management decisions and sourcing practices of our dealers
and our OEM customers; (xii) a failure to realize, or a delay in realizing, all of the
anticipated benefits of our acquisitions, joint ventures or divestitures; (xiii) union disputes
or other employee relations issues; (xiv) adverse effects of unexpected events including
natural disasters; (xv) disruptions or volatility in global financial markets limiting our
sources of liquidity or the liquidity of our customers, dealers and suppliers; (xvi) failure to
maintain our credit ratings and potential resulting increases to our cost of borrowing and
adverse effects on our cost of funds, liquidity, competitive position and access to capital
markets; (xvii) our Financial Products segment's risks associated with the financial services
industry; (xviii) changes in interest rates or market liquidity conditions; (xix) an increase
in delinquencies, repossessions or net losses of Cat Financial's customers; (xx) currency
fluctuations; (xxi) our or Cat Financial's compliance with financial and other restrictive
covenants in debt agreements; (xxii) increased pension plan funding obligations; (xxiii)
alleged or actual violations of trade or anti-corruption laws and regulations; (xxiv)
additional tax expense or exposure, including the impact of U.S. tax reform; (xxv) significant
legal proceedings, claims, lawsuits or government investigations; (xxvi) new regulations or
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