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."
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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."
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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 ) )
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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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August 06, 2020 18:21 ET (22:21 GMT)
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