Caterpillar Inc. Caterpillar Inc.: Form 8-K Exhibit 99.1 07-Aug-2020 / 00:20 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 2020 Earnings Release July 31, 2020 FOR IMMEDIATE RELEASE Caterpillar Reports Second-Quarter 2020 Results ($ in billions except profit per Second Quarter share) Sales and Revenues 2020 2019 $10.0 $14.4 Profit Per Share $0.84 $2.83 Second-quarter sales and revenues decreased 31%; profit per share declined 70% Strong balance sheet; $8.8 billion of enterprise cash DEERFIELD, Ill. - Caterpillar Inc. (NYSE: CAT) today announced second-quarter 2020 sales and revenues of $10.0 billion, a 31% decrease compared with $14.4 billion in the second quarter of 2019. The decline was due to lower sales volume driven by lower end-user demand and the impact from changes in dealer inventories. Dealers decreased machine and engine inventories about $1.4 billion during the second quarter of 2020, compared with an increase of about $500 million during the second quarter of 2019. Second-quarter 2020 profit per share was $0.84, compared with $2.83 profit per share in the second quarter of 2019. Profit per share in the second quarter of 2020 included pre-tax remeasurement losses of $122 million, or $0.19 per share, resulting from the settlements of pension obligations. Operating profit margin was 7.8% for the second quarter of 2020, compared with 15.3% for the second quarter of 2019. For the first half of 2020, enterprise operating cash flow was $2.5 billion. Caterpillar ended the second quarter with $8.8 billion of enterprise cash and $18.5 billion of available liquidity sources. In July, Cat Financial issued $1.5 billion of new three-year and 18-month medium-term notes to supplement its liquidity position. Response to COVID-19 and Global Business Conditions "I am proud of the global team's continued focus on safety while executing our strategy and serving our customers," said Caterpillar Chairman and CEO Jim Umpleby. "In the second quarter, our employees and dealers remained dedicated to providing the essential products and services the world needs under very challenging conditions." (more) 2 Operational Status Caterpillar continues to implement safeguards in its facilities to protect team members, including increased frequency of cleaning and disinfecting, social distancing practices and other measures consistent with specific regulatory requirements and guidance from health authorities. As of mid-July 2020, globally and across Caterpillar's three primary segments, nearly all of the company's primary production facilities continued to operate. This continues to fluctuate as conditions warrant, including the pace of economic recovery and the potential for additional COVID-related temporary shutdowns. The company has continued to take actions to reduce costs and prioritize its spending to provide for investment in services and expanded offerings, key elements of its strategy for profitable growth, which was introduced in 2017. Outlook Caterpillar's financial results for the remainder of 2020 will be impacted by continued global economic uncertainty due to the COVID-19 pandemic. As such, Caterpillar withdrew its earnings guidance on March 26 and is not providing a financial outlook for 2020 at this time. "We are well positioned for these challenging times because of the successful execution of our strategy," said Umpleby. "We are focused on employee safety and maintaining a competitive and flexible cost structure while continuing to invest in services and expanded offerings to better serve our customers. We will adjust production as conditions warrant and are prepared to respond quickly to any positive or negative changes in customer demand." (more) 3 CONSOLIDATED RESULTS Consolidated Sales and Revenues The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2019 (at left) and the second quarter of 2020 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's Board of Directors and employees. Total sales and revenues for the second quarter of 2020 were $9.997 billion, a decrease of $4.435 billion, or 31%, compared with $14.432 billion in the second quarter of 2019. The decline was due to lower sales volume driven by lower end-user demand and the impact from changes in dealer inventories. Dealers decreased machine and engine inventories about $1.4 billion during the second quarter of 2020, compared with an increase of about $500 million during the second quarter of 2019. The changes in dealer inventories came primarily in Construction Industries and Resource Industries. Unfavorable price realization also contributed to the sales decline due to the geographic mix of sales and competitive market conditions in China. Sales were lower across all regions and in the three primary segments. Sales and Revenues by Segment (Millions of Second Sales Price Currency Inter- Second $ % dollars) Quarter Volume Reali Segment Quarter Change Chang zatio / e n Other 2019 2020 Construction $ 6,467 $ $ $ (81) $ (5) $ 4,048 $ (37%) Industries (2,075 (258) (2,419 ) ) Resource 2,819 (933) (23) (45) 8 1,826 (993) (35%) Industries Energy & 5,486 (942) 23 (64) (354) 4,149 (1,337 (24%) Transportati ) on All Other 125 (5) - (1) (4) 115 (10) (8%) Segment Corporate (1,226) 43 (1) 1 355 (828) 398 Items and Eliminations Machinery, 13,671 (3,912 (259) (190) - 9,310 (4,361 (32%) Energy & ) ) Transportati on Financial 873 - - - (110) 763 (110) (13%) Products Segment Corporate (112) - - - 36 (76) 36 Items and Eliminations Financial 761 - - - (74) 687 (74) (10%) Products Revenues Consolidated $ $ $ $ (190) $ (74) $ 9,997 $ (31%) Sales and 14,432 (3,912 (259) (4,435 Revenues ) ) (more) 4 Sales and Revenues by Geographic Region (Millions of North Latin EAME Asia/Pacific External Inter-Segment Total dollars) America America Sales and Sales and Second Revenues Revenues Quarter 2020 $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg Construction $ (54%) $ (46%) $ (16%) $ (10%) $ (37%) $ 16 (24%) $ (37%) Industries 1,60 212 933 1,283 4,032 4,048 4 Resource 507 (52%) 270 (40%) 379 (15%) 554 (27%) 1,710 (37%) 116 7% 1,826 (35%) Industries Energy & 1,81 (21%) 197 (39%) 929 (20%) 599 (19%) 3,541 (22%) 608 (37%) 4,149 (24%) Transportati 6 on All Other 7 (50%) 1 -% 5 25% 15 -% 28 (18%) 87 (4%) 115 (8%) Segment Corporate 2 - (2) (1) (827) (828) Items and Eliminations 1) Machinery, 3,93 (42%) 679 (42%) 2,2 (17%) 2,449 (17%) 9,310 (32%) - -% 9,310 (32%) Energy & 6 46 Transportati on Financial 493 (12%) 60 (21%) 96 (6%) 114 (14%) 763 (13%) - -% 763 (13%) Products Segment Corporate (43) (9) (9) (15) (76) - (76) Items and Eliminations Financial 450 (8%) 51 (22%) 87 (6%) 99 (12%) 687 (10%) - -% 687 (10%) Products Revenues Consolidated $ (40%) $ (41%) $ (17%) $ (17%) $ (31%) $ - -% $ (31%) Sales and 4,38 730 2,3 2,548 9,997 9,997 Revenues 6 33 Second Quarter 2019 Construction $ $ $ $ $ $ 21 $ Industries 3,51 392 1,1 1,433 6,446 6,467 3 08 Resource 1,05 448 446 759 2,711 108 2,819 Industries 8 Energy & 2,29 325 1,1 742 4,524 962 5,486 Transportati 7 60 on All Other 14 1 4 15 34 91 125 Segment Corporate (39) (5) 2 (44) (1,182) (1,22 Items and 6) Eliminations 2) Machinery, 6,84 1,16 2,7 2,951 13,67 - 13,67 Energy & 3 4 13 1 1 Transportati on Financial 563 76 102 132 873 - 873 Products Segment Corporate (72) (11) (9) (20) (112) - (112) Items and Eliminations
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