DEERFIELD, Ill., Oct. 23, 2019 /PRNewswire/ --
Highlights:
- Sales and revenues down 6%; profit per share down 8%
- Returned about $1.8 billion in
share repurchases and dividends
- Full-year profit per share outlook range lowered to
$10.90 to $11.40
|
Third
Quarter
|
|
($ in billions except
profit per share)
|
2019
|
2018
|
|
Sales and
Revenues
|
$12.8
|
$13.5
|
|
Profit Per
Share
|
$2.66
|
$2.88
|
|
Caterpillar Inc. (NYSE: CAT) today announced third-quarter 2019
sales and revenues of $12.8 billion,
a 6% decrease compared with $13.5
billion in the third quarter of 2018. Third-quarter 2019
profit per share was $2.66, compared
with $2.88 profit per share in the
third quarter of 2018.
The primary driver of the decline in sales and revenues was a
$1.2 billion movement in dealers'
inventories. Dealers decreased their inventories about $400 million during the third quarter of 2019,
after increasing their inventories about $800 million during the third quarter of
2018.
During the third quarter of 2019, the company made a
$1.5 billion discretionary pension
contribution financed from proceeds of a debt issuance. As a
result, Machinery, Energy & Transportation (ME&T) operating
cash flow was negative $188 million.
The company also repurchased $1.2
billion of Caterpillar common stock and paid dividends of
$0.6 billion in the third quarter of
2019. The enterprise cash balance at the end of the third quarter
of 2019 was $7.9 billion.
"Our volumes declined as dealers reduced their inventories, and
end-user demand, while positive, was lower than our expectations,"
said Caterpillar Chairman and CEO Jim
Umpleby. "We remain focused on executing our strategy and
continuing to achieve our Investor Day targets for margin
improvement and free cash flow."
2019 Outlook
The company is lowering its full-year profit per share outlook
range to $10.90 to $11.40, compared to the previous outlook which
was at the low end of the $12.06 to
$13.06 range. Both ranges include the
first-quarter $0.31 per share
discrete tax benefit. The revised guidance now assumes modestly
lower sales in 2019. The company remains focused on maintaining a
competitive and flexible cost structure, including managing
production levels.
"In the fourth quarter, we now expect end-user demand to be flat
and dealers to make further inventory reductions due to global
economic uncertainty," said Umpleby. "Caterpillar's improved lead
times, along with these dealer inventory reductions, will enable us
to respond quickly to positive or negative developments in the
global economy in 2020. We are expanding our offerings and
investing in services, including digital capabilities, to drive
long-term profitable growth, while continuing to achieve our
Investor Day targets for improved financial performance."
The outlook does not include a mark-to-market gain or loss for
remeasurement of pension and other postemployment benefit plans,
which will be excluded from adjusted profit per share in the fourth
quarter of 2019 along with any other material discrete
items.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
Third Quarter 2019 vs. Third Quarter
2018
To access this chart, go
to http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar third-quarter
2019 earnings.
The chart above graphically illustrates reasons for the change
in consolidated sales and revenues between the third quarter of
2018 (at left) and the third quarter of 2019 (at right).
Caterpillar management utilizes these charts internally to visually
communicate with the company's Board of Directors and
employees.
Total sales and revenues of $12.758
billion in the third quarter of 2019 decreased $752 million, or 6%, compared with $13.510 billion in the third quarter of 2018. The
decline was due to lower sales volume driven by the unfavorable
impact from changes in dealer inventories, partially offset by
higher end-user demand across the three primary segments. Dealers
decreased machine and engine inventories about $400 million during the third quarter of 2019,
compared with an increase of about $800
million during the third quarter of 2018. Sales decreased
across the three primary segments and in all regions except for
Latin America, which was about
flat.
Sales and Revenues
by Segment
|
|
(Millions of dollars)
|
Third
Quarter
2018
|
|
Sales Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment /
Other
|
|
Third
Quarter
2019
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
5,683
|
|
|
$
|
(358)
|
|
|
$
|
26
|
|
|
$
|
(47)
|
|
|
$
|
(15)
|
|
|
$
|
5,289
|
|
|
$
|
(394)
|
|
|
(7%)
|
Resource
Industries
|
2,638
|
|
|
(389)
|
|
|
50
|
|
|
(20)
|
|
|
32
|
|
|
2,311
|
|
|
(327)
|
|
|
(12%)
|
Energy &
Transportation
|
5,555
|
|
|
31
|
|
|
11
|
|
|
(57)
|
|
|
(88)
|
|
|
5,452
|
|
|
(103)
|
|
|
(2%)
|
All Other
Segment
|
113
|
|
|
(9)
|
|
|
—
|
|
|
(1)
|
|
|
8
|
|
|
111
|
|
|
(2)
|
|
|
(2%)
|
Corporate Items and
Eliminations
|
(1,226)
|
|
|
(26)
|
|
|
(1)
|
|
|
1
|
|
|
63
|
|
|
(1,189)
|
|
|
37
|
|
|
|
Machinery, Energy
& Transportation
|
|
12,763
|
|
|
|
(751)
|
|
|
|
86
|
|
|
|
(124)
|
|
|
|
—
|
|
|
|
11,974
|
|
|
|
(789)
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
|
845
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20
|
|
|
|
865
|
|
|
|
20
|
|
|
2%
|
Corporate Items and
Eliminations
|
(98)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
(81)
|
|
|
17
|
|
|
|
Financial
Products Revenues
|
|
747
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
37
|
|
|
|
784
|
|
|
|
37
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
13,510
|
|
|
$
|
(751)
|
|
|
$
|
86
|
|
|
$
|
(124)
|
|
|
$
|
37
|
|
|
$
|
12,758
|
|
|
$
|
(752)
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Geographic Region
|
|
|
North
America
|
|
Latin
America
|
|
EAME
|
|
Asia/Pacific
|
|
External Sales
and Revenues
|
|
Inter-Segment
|
|
Total Sales
and Revenues
|
(Millions of dollars)
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
Third Quarter
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
2,728
|
|
|
3%
|
|
$
|
413
|
|
|
12%
|
|
$
|
1,048
|
|
|
(6%)
|
|
$
|
1,086
|
|
|
(29%)
|
|
$
|
5,275
|
|
|
(7%)
|
|
$
|
14
|
|
|
(52%)
|
|
$
|
5,289
|
|
|
(7%)
|
Resource
Industries
|
789
|
|
|
(7%)
|
|
349
|
|
|
(18%)
|
|
396
|
|
|
(31%)
|
|
645
|
|
|
(6%)
|
|
2,179
|
|
|
(14%)
|
|
132
|
|
|
32%
|
|
2,311
|
|
|
(12%)
|
Energy &
Transportation
|
2,129
|
|
|
(8%)
|
|
378
|
|
|
15%
|
|
1,224
|
|
|
4%
|
|
831
|
|
|
10%
|
|
4,562
|
|
|
—%
|
|
890
|
|
|
(9%)
|
|
5,452
|
|
|
(2%)
|
All Other
Segment
|
1
|
|
|
(93%)
|
|
6
|
|
|
—%
|
|
8
|
|
|
100%
|
|
12
|
|
|
(33%)
|
|
27
|
|
|
(27%)
|
|
84
|
|
|
11%
|
|
111
|
|
|
(2%)
|
Corporate Items and
Eliminations
|
(62)
|
|
|
|
|
1
|
|
|
|
|
(7)
|
|
|
|
|
(1)
|
|
|
|
|
(69)
|
|
|
|
|
(1,120)
|
|
|
|
|
(1,189)
|
|
|
|
Machinery, Energy
& Transportation
|
5,585
|
|
|
(3%)
|
|
1,147
|
|
|
2%
|
|
2,669
|
|
|
(7%)
|
|
2,573
|
|
|
(14%)
|
|
11,974
|
|
|
(6%)
|
|
—
|
|
|
—%
|
|
11,974
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
560
|
|
|
—%
|
|
79
|
|
|
16%
|
|
102
|
|
|
1%
|
|
124
|
|
|
6%
|
|
865
|
|
|
2%
|
|
—
|
|
|
—%
|
|
865
|
|
|
2%
|
Corporate Items and
Eliminations
|
(43)
|
|
|
|
|
(15)
|
|
|
|
|
(8)
|
|
|
|
|
(15)
|
|
|
|
|
(81)
|
|
|
|
|
—
|
|
|
|
|
(81)
|
|
|
|
Financial
Products Revenues
|
517
|
|
|
4%
|
|
64
|
|
|
14%
|
|
94
|
|
|
(1%)
|
|
109
|
|
|
10%
|
|
784
|
|
|
5%
|
|
—
|
|
|
—%
|
|
784
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
6,102
|
|
|
(3%)
|
|
$
|
1,211
|
|
|
2%
|
|
$
|
2,763
|
|
|
(7%)
|
|
$
|
2,682
|
|
|
(13%)
|
|
$
|
12,758
|
|
|
(6%)
|
|
$
|
—
|
|
|
—%
|
|
$
|
12,758
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
2,646
|
|
|
|
|
$
|
369
|
|
|
|
|
$
|
1,109
|
|
|
|
|
$
|
1,530
|
|
|
|
|
$
|
5,654
|
|
|
|
|
$
|
29
|
|
|
|
|
$
|
5,683
|
|
|
|
Resource
Industries
|
849
|
|
|
|
|
427
|
|
|
|
|
574
|
|
|
|
|
688
|
|
|
|
|
2,538
|
|
|
|
|
100
|
|
|
|
|
2,638
|
|
|
|
Energy &
Transportation
|
2,309
|
|
|
|
|
330
|
|
|
|
|
1,180
|
|
|
|
|
758
|
|
|
|
|
4,577
|
|
|
|
|
978
|
|
|
|
|
5,555
|
|
|
|
All Other
Segment
|
15
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
18
|
|
|
|
|
37
|
|
|
|
|
76
|
|
|
|
|
113
|
|
|
|
Corporate Items and
Eliminations
|
(40)
|
|
|
|
|
1
|
|
|
|
|
(5)
|
|
|
|
|
1
|
|
|
|
|
(43)
|
|
|
|
|
(1,183)
|
|
|
|
|
(1,226)
|
|
|
|
Machinery, Energy
& Transportation
|
5,779
|
|
|
|
|
1,127
|
|
|
|
|
2,862
|
|
|
|
|
2,995
|
|
|
|
|
12,763
|
|
|
|
|
—
|
|
|
|
|
12,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
559
|
|
|
|
|
68
|
|
|
|
|
101
|
|
|
|
|
117
|
|
|
|
|
845
|
|
|
|
|
—
|
|
|
|
|
845
|
|
|
|
Corporate Items and
Eliminations
|
(62)
|
|
|
|
|
(12)
|
|
|
|
|
(6)
|
|
|
|
|
(18)
|
|
|
|
|
(98)
|
|
|
|
|
—
|
|
|
|
|
(98)
|
|
|
|
Financial
Products Revenues
|
497
|
|
|
|
|
56
|
|
|
|
|
95
|
|
|
|
|
99
|
|
|
|
|
747
|
|
|
|
|
—
|
|
|
|
|
747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
6,276
|
|
|
|
|
$
|
1,183
|
|
|
|
|
$
|
2,957
|
|
|
|
|
$
|
3,094
|
|
|
|
|
$
|
13,510
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
13,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Profit
Consolidated Operating Profit Comparison
Third Quarter 2019 vs. Third Quarter
2018
To access this chart, go
to http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar third-quarter
2019 earnings.
The chart above graphically illustrates reasons for the change
in consolidated operating profit between the third quarter of 2018
(at left) and the third quarter of 2019 (at right). Caterpillar
management utilizes these charts internally to visually communicate
with the company's Board of Directors and employees. The bar titled
Other includes consolidating adjustments and Machinery, Energy
& Transportation's other operating (income) expenses.
Operating profit for the third quarter of 2019 was $2.020 billion, a decrease of $115 million, or 5%, compared with $2.135 billion in the third quarter of 2018. The
decrease was primarily due to lower sales volume. This decrease was
partially offset by favorable price realization and lower selling,
general and administrative (SG&A) and research and development
(R&D) expenses.
Favorable price realization continued to offset manufacturing
costs and lower SG&A/R&D expenses were mostly due to a
reduction in short-term incentive compensation expense.
Operating profit margin was 15.8% for both the third quarters of
2019 and 2018.
Profit (Loss) by
Segment
|
|
(Millions of dollars)
|
Third Quarter
2019
|
|
Third Quarter
2018
|
|
$
Change
|
|
%
Change
|
Construction
Industries
|
$
|
940
|
|
|
$
|
1,058
|
|
|
$
|
(118)
|
|
|
(11)
|
%
|
Resource
Industries
|
311
|
|
|
414
|
|
|
(103)
|
|
|
(25)
|
%
|
Energy &
Transportation
|
1,021
|
|
|
973
|
|
|
48
|
|
|
5
|
%
|
All Other
Segment
|
(21)
|
|
|
(10)
|
|
|
(11)
|
|
|
(110)
|
%
|
Corporate Items and
Eliminations
|
(363)
|
|
|
(371)
|
|
|
8
|
|
|
|
Machinery, Energy
& Transportation
|
|
1,888
|
|
|
|
2,064
|
|
|
|
(176)
|
|
|
(9)
|
%
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
|
218
|
|
|
|
201
|
|
|
|
17
|
|
|
8
|
%
|
Corporate Items and
Eliminations
|
21
|
|
|
(30)
|
|
|
51
|
|
|
|
Financial
Products
|
|
239
|
|
|
|
171
|
|
|
|
68
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
Consolidating
Adjustments
|
(107)
|
|
|
(100)
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit
|
$
|
2,020
|
|
|
$
|
2,135
|
|
|
$
|
(115)
|
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
Other Profit/Loss and Tax Items
The provision for income taxes for the third quarter of 2019
reflected an estimated annual tax rate of 26%, compared with 24%
for the third quarter of 2018. The increase was largely driven by
the application of U.S. tax reform provisions to the earnings of
certain non-U.S. subsidiaries, which do not have a calendar fiscal
year-end. These provisions did not apply to these subsidiaries
in 2018.
CONSTRUCTION
INDUSTRIES
|
(Millions of
dollars)
|
Segment
Sales
|
|
|
|
|
Third
Quarter 2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
Third
Quarter 2019
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
|
$
|
5,683
|
|
|
$
|
(358)
|
|
|
$
|
26
|
|
|
$
|
(47)
|
|
|
$
|
(15)
|
|
|
$
|
5,289
|
|
|
$
|
(394)
|
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2019
|
|
Third
Quarter 2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
2,728
|
|
|
$
|
2,646
|
|
|
$
|
82
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
Latin
America
|
|
413
|
|
|
369
|
|
|
44
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
EAME
|
|
1,048
|
|
|
1,109
|
|
|
(61)
|
|
|
(6)
|
%
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
|
1,086
|
|
|
1,530
|
|
|
(444)
|
|
|
(29)
|
%
|
|
|
|
|
|
|
|
|
External
Sales
|
|
5,275
|
|
|
5,654
|
|
|
(379)
|
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
Inter-segment
|
|
14
|
|
|
29
|
|
|
(15)
|
|
|
(52)
|
%
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
|
5,289
|
|
|
$
|
5,683
|
|
|
$
|
(394)
|
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2019
|
|
Third
Quarter 2018
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
|
940
|
|
|
$
|
1,058
|
|
|
$
|
(118)
|
|
|
(11)
|
%
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
|
17.8
|
%
|
|
18.6
|
%
|
|
(0.8
|
pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Industries' total sales were $5.289 billion in the third quarter of 2019, a
decrease of $394 million, or 7%,
compared with $5.683 billion in the
third quarter of 2018. The decrease was due to lower sales volume
driven by the unfavorable impact from changes in dealer
inventories, partially offset by higher end-user demand for
construction equipment. Dealers increased inventories during the
third quarter of 2018, compared with a decrease in the third
quarter of 2019.
- In North America, sales
increased primarily due to favorable price realization and higher
demand for equipment, mostly to support road and non-residential
building construction activities.
- Sales were higher in Latin
America, but construction activities remained at low
levels.
- In EAME, the sales decrease was primarily due to currency
impacts related to the euro. Unfavorable price realization and
lower sales volume also contributed to the decrease.
- Sales in Asia/Pacific were
lower across most of the region primarily due to lower demand in
China, including unfavorable
changes in dealer inventories, amid continued competitive
pressures.
Construction Industries' profit was $940
million in the third quarter of 2019, a decrease of
$118 million, or 11%, compared with
$1.058 billion in the third quarter
of 2018. The decrease was primarily due to lower sales volume,
partially offset by lower SG&A/R&D expenses and favorable
price realization. Lower SG&A/R&D expenses were primarily
due to lower short-term incentive compensation expense.
RESOURCE
INDUSTRIES
|
(Millions of
dollars)
|
Segment
Sales
|
|
|
|
Third
Quarter 2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
Third
Quarter 2019
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
|
$
|
2,638
|
|
|
$
|
(389)
|
|
|
$
|
50
|
|
|
$
|
(20)
|
|
|
$
|
32
|
|
|
$
|
2,311
|
|
|
$
|
(327)
|
|
|
(12)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2019
|
|
Third
Quarter 2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
789
|
|
|
$
|
849
|
|
|
$
|
(60)
|
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
Latin
America
|
|
349
|
|
|
427
|
|
|
(78)
|
|
|
(18)
|
%
|
|
|
|
|
|
|
|
|
EAME
|
|
396
|
|
|
574
|
|
|
(178)
|
|
|
(31)
|
%
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
|
645
|
|
|
688
|
|
|
(43)
|
|
|
(6)
|
%
|
|
|
|
|
|
|
|
|
External
Sales
|
|
2,179
|
|
|
2,538
|
|
|
(359)
|
|
|
(14)
|
%
|
|
|
|
|
|
|
|
|
Inter-segment
|
|
132
|
|
|
100
|
|
|
32
|
|
|
32
|
%
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
|
2,311
|
|
|
$
|
2,638
|
|
|
$
|
(327)
|
|
|
(12)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2019
|
|
Third
Quarter 2018
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
|
311
|
|
|
$
|
414
|
|
|
$
|
(103)
|
|
|
(25)
|
%
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
|
13.5
|
%
|
|
15.7
|
%
|
|
(2.2
|
pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource Industries' total sales were $2.311 billion in the third quarter of 2019, a
decrease of $327 million, or 12%,
compared with $2.638 billion in the
third quarter of 2018. The decrease was due to lower sales volume
driven by the unfavorable impact from changes in dealer
inventories, partially offset by higher end-user demand for
equipment and favorable price realization. Dealers decreased
inventories during the third quarter of 2019, compared with an
increase in the third quarter of 2018. While commodity prices are
generally supportive of reinvestment, the company believes mining
customers are cautious due to economic uncertainty. Mining sales
were also impacted by lower thermal coal prices. In addition,
sales decreased for equipment supporting non-residential
construction and quarry and aggregates driven by a reduction in
dealer inventories.
Resource Industries' profit was $311
million in the third quarter of 2019, a decrease of
$103 million, or 25%, compared with
$414 million in the third quarter of
2018. The decrease was primarily due to lower sales volume,
partially offset by favorable price realization.
ENERGY &
TRANSPORTATION
|
(Millions of
dollars)
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
Third
Quarter 2019
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
|
$
|
5,555
|
|
|
$
|
31
|
|
|
$
|
11
|
|
|
$
|
(57)
|
|
|
$
|
(88)
|
|
|
$
|
5,452
|
|
|
$
|
(103)
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Application
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2019
|
|
Third
Quarter 2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Oil and
Gas
|
|
$
|
1,246
|
|
|
$
|
1,362
|
|
|
$
|
(116)
|
|
|
(9)
|
%
|
|
|
|
|
|
|
|
|
Power
Generation
|
|
1,123
|
|
|
1,102
|
|
|
21
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
Industrial
|
|
980
|
|
|
863
|
|
|
117
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
Transportation
|
|
1,213
|
|
|
1,250
|
|
|
(37)
|
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
External
Sales
|
|
4,562
|
|
|
4,577
|
|
|
(15)
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
Inter-segment
|
|
890
|
|
|
978
|
|
|
(88)
|
|
|
(9)
|
%
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
|
5,452
|
|
|
$
|
5,555
|
|
|
$
|
(103)
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2019
|
|
Third
Quarter 2018
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
|
1,021
|
|
|
$
|
973
|
|
|
$
|
48
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
|
18.7
|
%
|
|
17.5
|
%
|
|
1.2
|
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's total sales were $5.452 billion in the third quarter of 2019, a
decrease of $103 million, or 2%,
compared with $5.555 billion in the
third quarter of 2018. Sales decreased primarily due to lower
inter-segment engine sales.
- Oil and Gas – Sales decreased for reciprocating engines in
North America primarily due to
lower demand in well servicing applications. This was partially
offset by higher sales of turbines and turbine-related
services.
- Power Generation – Sales increased mostly due to higher
deliveries in North America for
large diesel reciprocating engines and turbines, partially offset
by lower sales of reciprocating engines in EAME.
- Industrial – Sales improved primarily in EAME and Asia/Pacific driven by higher end-user
demand.
- Transportation – Sales were lower primarily due to timing of
locomotive deliveries.
Energy & Transportation's profit was $1.021 billion in the third quarter of 2019, an
increase of $48 million, or 5%,
compared with $973 million in the
third quarter of 2018. Lower sales volume, including an unfavorable
mix of products, was more than offset by favorable other operating
income/expense and SG&A/R&D expenses mostly due to a
reduction in short-term incentive compensation expense.
FINANCIAL PRODUCTS
SEGMENT
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2019
|
|
Third
Quarter 2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
560
|
|
|
$
|
559
|
|
|
$
|
1
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
Latin
America
|
|
79
|
|
|
68
|
|
|
11
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
EAME
|
|
102
|
|
|
101
|
|
|
1
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
|
124
|
|
|
117
|
|
|
7
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
|
865
|
|
|
$
|
845
|
|
|
$
|
20
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2019
|
|
Third
Quarter 2018
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
|
218
|
|
|
$
|
201
|
|
|
$
|
17
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products' segment revenues were $865 million in the third quarter of 2019, an
increase of $20 million, or 2%, from
the third quarter of 2018. The increase was primarily due to higher
average financing rates in North
America and Asia/Pacific,
partially offset by an unfavorable impact due to the absence of
fees associated with an intercompany credit facility in
North America.
Financial Products' segment profit was $218 million in the third quarter of 2019, up 8%
compared with $201 million in the
third quarter of 2018. The favorable change was primarily due to an
increase in net yield on average earning assets and a decrease in
the provision for credit losses at Cat Financial, partially offset
by unfavorable impacts from higher SG&A expenses, the
mark-to-market on equity securities in Insurance Services and the
absence of the intercompany credit facility.
At the end of the third quarter of 2019, past dues at Cat
Financial were 3.19%, compared with 3.47% at the end of the third
quarter of 2018. Write-offs, net of recoveries, were $103 million for the third quarter of 2019,
compared with $40 million for the
third quarter of 2018. The increase in write-offs, net of
recoveries, was primarily driven by Caterpillar Power Finance,
concentrated in the marine portfolio, and EAME, mostly in the
Middle East. As of September 30, 2019, Cat Financial's allowance for
credit losses totaled $434 million,
or 1.57% of finance receivables, compared with $523 million, or 1.81% of finance receivables at
June 30, 2019. The allowance for
credit losses at year-end 2018 was $511
million, or 1.80% of finance receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $342 million in the third quarter of 2019, a
decrease of $59 million from the
third quarter of 2018, primarily due to lower restructuring
costs.
Dealer Inventories and Order Backlog
Dealers decreased machine and engine inventories about
$400 million during the third quarter
of 2019, compared with an increase of about $800 million during the third quarter of 2018,
led by Construction Industries and Resource Industries.
At the end of the third quarter of 2019, the order backlog was
$14.6 billion, about $400 million lower than the second quarter of
2019.
Notes
- Glossary of terms is included on the Caterpillar website at
http://www.caterpillar.com/investors/.
- Information on non-GAAP financial measures is included in
the appendix on page 21.
- Caterpillar will conduct a teleconference and live webcast,
with a slide presentation, beginning at 7:30
a.m. Central Time on Wednesday, October 23, 2019, to discuss
its 2019 third-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.
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 2018 sales
and revenues of $54.722 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. To connect with us on social media, visit
caterpillar.com/social-media.
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," "forecast," "target," "guide,"
"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)
inventory management decisions and sourcing practices of our
dealers and our OEM customers; (x) a failure to realize, or a delay
in realizing, all of the anticipated benefits of our acquisitions,
joint ventures or divestitures; (xi) union disputes or other
employee relations issues; (xii) adverse effects of unexpected
events including natural disasters; (xiii) disruptions or
volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers;
(xiv) 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; (xv) our Financial Products segment's risks
associated with the financial services industry; (xvi) changes in
interest rates or market liquidity conditions; (xvii) an increase
in delinquencies, repossessions or net losses of Cat Financial's
customers; (xviii) currency fluctuations; (xix) our or Cat
Financial's compliance with financial and other restrictive
covenants in debt agreements; (xx) increased pension plan funding
obligations; (xxi) alleged or actual violations of trade or
anti-corruption laws and regulations; (xxii) additional tax expense
or exposure, including the impact of U.S. tax reform; (xxiii)
significant legal proceedings, claims, lawsuits or government
investigations; (xxiv) new regulations or changes in financial
services regulations; (xxv) compliance with environmental laws and
regulations; and (xxvi) other factors described in more detail in
Caterpillar's Forms 10-Q, 10-K and other filings with the
Securities and Exchange Commission.
Machinery, Energy & Transportation
Caterpillar defines Machinery, Energy & Transportation as it
is presented in the supplemental data as Caterpillar Inc. and its
subsidiaries with Financial Products accounted for on the equity
basis. Machinery, Energy & Transportation information relates
to the design, manufacture and marketing of Caterpillar products.
Financial Products' information relates to the financing to
customers and dealers for the purchase and lease of Caterpillar and
other equipment. The nature of these businesses is different,
especially with regard to the financial position and cash flow
items. Caterpillar management utilizes this presentation internally
to highlight these differences. The company also believes this
presentation will assist readers in understanding Caterpillar's
business. Pages 12-20 reconcile Machinery, Energy &
Transportation with Financial Products on the equity basis to
Caterpillar Inc. consolidated financial information.
Caterpillar's latest financial results and outlook are also
available online:
http://www.caterpillar.com/en/investors.html
http://www.caterpillar.com/en/investors/quarterly-results.html (live
broadcast/replays of quarterly conference call)
Caterpillar
Inc
Condensed
Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in
millions except per share data)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
11,974
|
|
|
|
$
|
12,763
|
|
|
|
$
|
38,369
|
|
|
|
$
|
38,192
|
|
|
|
Revenues of Financial
Products
|
|
784
|
|
|
|
|
747
|
|
|
|
|
2,287
|
|
|
|
|
2,188
|
|
|
|
Total sales and
revenues
|
|
12,758
|
|
|
|
|
13,510
|
|
|
|
|
40,656
|
|
|
|
|
40,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,569
|
|
|
|
|
9,022
|
|
|
|
|
27,513
|
|
|
|
|
27,010
|
|
|
|
Selling, general and
administrative expenses
|
|
1,251
|
|
|
|
|
1,299
|
|
|
|
|
3,879
|
|
|
|
|
4,015
|
|
|
|
Research and
development expenses
|
|
431
|
|
|
|
|
479
|
|
|
|
|
1,307
|
|
|
|
|
1,384
|
|
|
|
Interest expense of
Financial Products
|
|
189
|
|
|
|
|
185
|
|
|
|
|
571
|
|
|
|
|
533
|
|
|
|
Other operating
(income) expenses
|
|
298
|
|
|
|
|
390
|
|
|
|
|
946
|
|
|
|
|
1,028
|
|
|
|
Total operating
costs
|
|
10,738
|
|
|
|
|
11,375
|
|
|
|
|
34,216
|
|
|
|
|
33,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,020
|
|
|
|
|
2,135
|
|
|
|
|
6,440
|
|
|
|
|
6,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
103
|
|
|
|
|
102
|
|
|
|
|
309
|
|
|
|
|
305
|
|
|
|
Other income
(expense)
|
|
88
|
|
|
|
|
102
|
|
|
|
|
316
|
|
|
|
|
350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,005
|
|
|
|
|
2,135
|
|
|
|
|
6,447
|
|
|
|
|
6,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
518
|
|
|
|
|
415
|
|
|
|
|
1,470
|
|
|
|
|
1,377
|
|
|
|
Profit of
consolidated companies
|
|
1,487
|
|
|
|
|
1,720
|
|
|
|
|
4,977
|
|
|
|
|
5,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
7
|
|
|
|
|
7
|
|
|
|
|
20
|
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,494
|
|
|
|
|
1,727
|
|
|
|
|
4,997
|
|
|
|
|
5,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
1
|
$
|
1,494
|
|
|
|
$
|
1,727
|
|
|
|
$
|
4,995
|
|
|
|
$
|
5,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share
|
$
|
2.69
|
|
|
|
$
|
2.92
|
|
|
|
$
|
8.84
|
|
|
|
$
|
8.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share – diluted 2
|
$
|
2.66
|
|
|
|
$
|
2.88
|
|
|
|
$
|
8.75
|
|
|
|
$
|
8.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares
outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
556.3
|
|
|
|
|
592.1
|
|
|
|
|
565.2
|
|
|
|
|
595.3
|
|
|
|
-
Diluted2
|
|
561.2
|
|
|
|
|
599.4
|
|
|
|
|
570.8
|
|
|
|
|
603.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit attributable
to common shareholders.
|
2
|
Diluted by assumed
exercise of stock-based compensation awards using the treasury
stock method.
|
Caterpillar
Inc
Condensed
Consolidated Statement of Financial Position
(Unaudited)
(Millions of
dollars)
|
|
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
7,906
|
|
|
|
$
|
7,857
|
|
|
|
|
Receivables - trade
and other
|
|
8,275
|
|
|
|
|
8,802
|
|
|
|
|
Receivables -
finance
|
|
9,192
|
|
|
|
|
8,650
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
1,607
|
|
|
|
|
1,765
|
|
|
|
|
Inventories
|
|
12,180
|
|
|
|
|
11,529
|
|
|
|
Total
current assets
|
|
39,160
|
|
|
|
|
38,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
12,842
|
|
|
|
|
13,574
|
|
|
|
Long-term receivables
- trade and other
|
|
1,193
|
|
|
|
|
1,161
|
|
|
|
Long-term receivables
- finance
|
|
12,412
|
|
|
|
|
13,286
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
1,372
|
|
|
|
|
1,439
|
|
|
|
Intangible
assets
|
|
1,630
|
|
|
|
|
1,897
|
|
|
|
Goodwill
|
|
6,142
|
|
|
|
|
6,217
|
|
|
|
Other
assets
|
|
3,242
|
|
|
|
|
2,332
|
|
|
Total
assets
|
$
|
77,993
|
|
|
|
$
|
78,509
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
|
-- Financial
Products
|
|
4,268
|
|
|
|
|
5,723
|
|
|
|
|
Accounts
payable
|
|
6,141
|
|
|
|
|
7,051
|
|
|
|
|
Accrued
expenses
|
|
3,727
|
|
|
|
|
3,573
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
1,518
|
|
|
|
|
2,384
|
|
|
|
|
Customer
advances
|
|
1,309
|
|
|
|
|
1,243
|
|
|
|
|
Dividends
payable
|
|
—
|
|
|
|
|
495
|
|
|
|
|
Other current
liabilities
|
|
2,188
|
|
|
|
|
1,919
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
25
|
|
|
|
|
10
|
|
|
|
|
|
-- Financial
Products
|
|
8,025
|
|
|
|
|
5,820
|
|
|
|
Total current
liabilities
|
|
27,201
|
|
|
|
|
28,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
9,134
|
|
|
|
|
8,005
|
|
|
|
|
|
-- Financial
Products
|
|
16,454
|
|
|
|
|
16,995
|
|
|
|
Liability for
postemployment benefits
|
|
5,900
|
|
|
|
|
7,455
|
|
|
|
Other
liabilities
|
|
4,311
|
|
|
|
|
3,756
|
|
|
Total
liabilities
|
|
63,000
|
|
|
|
|
64,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,951
|
|
|
|
|
5,827
|
|
|
|
Treasury
stock
|
|
(23,693)
|
|
|
|
|
(20,531)
|
|
|
|
Profit employed in
the business
|
|
34,477
|
|
|
|
|
30,427
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,783)
|
|
|
|
|
(1,684)
|
|
|
|
Noncontrolling
interests
|
|
41
|
|
|
|
|
41
|
|
|
Total
shareholders' equity
|
|
14,993
|
|
|
|
|
14,080
|
|
|
Total liabilities
and shareholders' equity
|
$
|
77,993
|
|
|
|
$
|
78,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of
dollars)
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
2019
|
|
2018
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
4,997
|
|
|
|
$
|
5,099
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,933
|
|
|
|
|
2,065
|
|
|
|
|
Other
|
|
627
|
|
|
|
|
630
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
427
|
|
|
|
|
(725)
|
|
|
|
|
Inventories
|
|
(676)
|
|
|
|
|
(1,822)
|
|
|
|
|
Accounts
payable
|
|
(669)
|
|
|
|
|
496
|
|
|
|
|
Accrued
expenses
|
|
114
|
|
|
|
|
(32)
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(858)
|
|
|
|
|
(418)
|
|
|
|
|
Customer
advances
|
|
169
|
|
|
|
|
59
|
|
|
|
|
Other assets –
net
|
|
3
|
|
|
|
|
394
|
|
|
|
|
Other liabilities –
net
|
|
(1,589)
|
|
|
|
|
(1,271)
|
|
|
Net cash provided by
(used for) operating activities
|
|
4,478
|
|
|
|
|
4,475
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(723)
|
|
|
|
|
(921)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(1,133)
|
|
|
|
|
(1,208)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
812
|
|
|
|
|
732
|
|
|
|
Additions to finance
receivables
|
|
(9,453)
|
|
|
|
|
(9,092)
|
|
|
|
Collections of
finance receivables
|
|
9,144
|
|
|
|
|
8,032
|
|
|
|
Proceeds from sale of
finance receivables
|
|
183
|
|
|
|
|
416
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(6)
|
|
|
|
|
(357)
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
3
|
|
|
|
|
14
|
|
|
|
Proceeds from sale of
securities
|
|
281
|
|
|
|
|
363
|
|
|
|
Investments in
securities
|
|
(425)
|
|
|
|
|
(417)
|
|
|
|
Other –
net
|
|
(37)
|
|
|
|
|
24
|
|
|
Net cash provided by
(used for) investing activities
|
|
(1,354)
|
|
|
|
|
(2,414)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,564)
|
|
|
|
|
(1,444)
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
59
|
|
|
|
|
292
|
|
|
|
Common shares
repurchased
|
|
(3,283)
|
|
|
|
|
(2,000)
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
8,827
|
|
|
|
|
7,073
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(6,062)
|
|
|
|
|
(5,642)
|
|
|
|
Short-term borrowings
– net (original maturities three months or less)
|
|
(1,006)
|
|
|
|
|
(465)
|
|
|
|
Other –
net
|
|
(2)
|
|
|
|
|
(32)
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,031)
|
|
|
|
|
(2,218)
|
|
|
Effect of exchange
rate changes on cash
|
|
(47)
|
|
|
|
|
(117)
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
46
|
|
|
|
|
(274)
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
7,890
|
|
|
|
|
8,320
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,936
|
|
|
|
$
|
8,046
|
|
|
|
All short-term
investments, which consist primarily of highly liquid investments
with original maturities of three months or less, are considered to
be cash equivalents.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Three Months Ended September 30, 2019
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
11,974
|
|
|
|
$
|
11,974
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
784
|
|
|
|
|
—
|
|
|
|
|
920
|
|
|
|
|
(136)
|
|
2
|
|
Total sales and
revenues
|
|
12,758
|
|
|
|
|
11,974
|
|
|
|
|
920
|
|
|
|
|
(136)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,569
|
|
|
|
|
8,569
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Selling, general and
administrative expenses
|
|
1,251
|
|
|
|
|
1,095
|
|
|
|
|
163
|
|
|
|
|
(7)
|
|
3
|
|
Research and
development expenses
|
|
431
|
|
|
|
|
431
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
189
|
|
|
|
|
—
|
|
|
|
|
198
|
|
|
|
|
(9)
|
|
4
|
|
Other operating
(income) expenses
|
|
298
|
|
|
|
|
(9)
|
|
|
|
|
320
|
|
|
|
|
(13)
|
|
3
|
|
Total operating
costs
|
|
10,738
|
|
|
|
|
10,086
|
|
|
|
|
681
|
|
|
|
|
(29)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,020
|
|
|
|
|
1,888
|
|
|
|
|
239
|
|
|
|
|
(107)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
103
|
|
|
|
|
103
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other income
(expense)
|
|
88
|
|
|
|
|
(27)
|
|
|
|
|
8
|
|
|
|
|
107
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,005
|
|
|
|
|
1,758
|
|
|
|
|
247
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
518
|
|
|
|
|
457
|
|
|
|
|
61
|
|
|
|
|
—
|
|
|
|
Profit of
consolidated companies
|
|
1,487
|
|
|
|
|
1,301
|
|
|
|
|
186
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
7
|
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
180
|
|
|
|
|
—
|
|
|
|
|
(180)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,494
|
|
|
|
|
1,488
|
|
|
|
|
186
|
|
|
|
|
(180)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
—
|
|
|
|
|
(6)
|
|
|
|
|
6
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,494
|
|
|
|
$
|
1,494
|
|
|
|
$
|
180
|
|
|
|
$
|
(180)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of
interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Three Months Ended September 30, 2018
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
12,763
|
|
|
|
$
|
12,763
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
747
|
|
|
|
|
—
|
|
|
|
|
867
|
|
|
|
|
(120)
|
|
2
|
|
Total sales and
revenues
|
|
13,510
|
|
|
|
|
12,763
|
|
|
|
|
867
|
|
|
|
|
(120)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
9,022
|
|
|
|
|
9,022
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Selling, general and
administrative expenses
|
|
1,299
|
|
|
|
|
1,135
|
|
|
|
|
169
|
|
|
|
|
(5)
|
|
3
|
|
Research and
development expenses
|
|
479
|
|
|
|
|
479
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
185
|
|
|
|
|
—
|
|
|
|
|
194
|
|
|
|
|
(9)
|
|
4
|
|
Other operating
(income) expenses
|
|
390
|
|
|
|
|
63
|
|
|
|
|
333
|
|
|
|
|
(6)
|
|
3
|
|
Total operating
costs
|
|
11,375
|
|
|
|
|
10,699
|
|
|
|
|
696
|
|
|
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,135
|
|
|
|
|
2,064
|
|
|
|
|
171
|
|
|
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
102
|
|
|
|
|
114
|
|
|
|
|
—
|
|
|
|
|
(12)
|
|
4
|
|
Other income
(expense)
|
|
102
|
|
|
|
|
(5)
|
|
|
|
|
19
|
|
|
|
|
88
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,135
|
|
|
|
|
1,945
|
|
|
|
|
190
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
415
|
|
|
|
|
376
|
|
|
|
|
39
|
|
|
|
|
—
|
|
|
|
Profit of
consolidated companies
|
|
1,720
|
|
|
|
|
1,569
|
|
|
|
|
151
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
7
|
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
145
|
|
|
|
|
—
|
|
|
|
|
(145)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,727
|
|
|
|
|
1,721
|
|
|
|
|
151
|
|
|
|
|
(145)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
—
|
|
|
|
|
(6)
|
|
|
|
|
6
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,727
|
|
|
|
$
|
1,727
|
|
|
|
$
|
145
|
|
|
|
$
|
(145)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Nine Months Ended September 30, 2019
(Unaudited)
(Millions of dollars)
|
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
|
Machinery,
|
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
38,369
|
|
|
|
$
|
38,369
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
2,287
|
|
|
|
|
—
|
|
|
|
|
2,684
|
|
|
|
|
(397)
|
|
2
|
|
Total sales and
revenues
|
|
40,656
|
|
|
|
|
38,369
|
|
|
|
|
2,684
|
|
|
|
|
(397)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
27,513
|
|
|
|
|
27,515
|
|
|
|
|
—
|
|
|
|
|
(2)
|
|
3
|
|
Selling, general and
administrative expenses
|
|
3,879
|
|
|
|
|
3,324
|
|
|
|
|
564
|
|
|
|
|
(9)
|
|
3
|
|
Research and
development expenses
|
|
1,307
|
|
|
|
|
1,307
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
571
|
|
|
|
|
—
|
|
|
|
|
599
|
|
|
|
|
(28)
|
|
4
|
|
Other operating
(income) expenses
|
|
946
|
|
|
|
|
2
|
|
|
|
|
974
|
|
|
|
|
(30)
|
|
3
|
|
Total operating
costs
|
|
34,216
|
|
|
|
|
32,148
|
|
|
|
|
2,137
|
|
|
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
6,440
|
|
|
|
|
6,221
|
|
|
|
|
547
|
|
|
|
|
(328)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
309
|
|
|
|
|
318
|
|
|
|
|
—
|
|
|
|
|
(9)
|
|
4
|
|
Other income
(expense)
|
|
316
|
|
|
|
|
(71)
|
|
|
|
|
68
|
|
|
|
|
319
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
6,447
|
|
|
|
|
5,832
|
|
|
|
|
615
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
1,470
|
|
|
|
|
1,294
|
|
|
|
|
176
|
|
|
|
|
—
|
|
|
|
Profit of
consolidated companies
|
|
4,977
|
|
|
|
|
4,538
|
|
|
|
|
439
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
20
|
|
|
|
|
20
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
422
|
|
|
|
|
—
|
|
|
|
|
(422)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
4,997
|
|
|
|
|
4,980
|
|
|
|
|
439
|
|
|
|
|
(422)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
2
|
|
|
|
|
(15)
|
|
|
|
|
17
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
4,995
|
|
|
|
$
|
4,995
|
|
|
|
$
|
422
|
|
|
|
$
|
(422)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Nine Months Ended September 30, 2018
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
38,192
|
|
|
|
$
|
38,192
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
2,188
|
|
|
|
|
—
|
|
|
|
|
2,527
|
|
|
|
|
(339)
|
|
2
|
|
Total sales and
revenues
|
|
40,380
|
|
|
|
|
38,192
|
|
|
|
|
2,527
|
|
|
|
|
(339)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
27,010
|
|
|
|
|
27,010
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Selling, general and
administrative expenses
|
|
4,015
|
|
|
|
|
3,445
|
|
|
|
|
581
|
|
|
|
|
(11)
|
|
3
|
|
Research and
development expenses
|
|
1,384
|
|
|
|
|
1,384
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
533
|
|
|
|
|
—
|
|
|
|
|
558
|
|
|
|
|
(25)
|
|
4
|
|
Other operating
(income) expenses
|
|
1,028
|
|
|
|
|
100
|
|
|
|
|
949
|
|
|
|
|
(21)
|
|
3
|
|
Total operating
costs
|
|
33,970
|
|
|
|
|
31,939
|
|
|
|
|
2,088
|
|
|
|
|
(57)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
6,410
|
|
|
|
|
6,253
|
|
|
|
|
439
|
|
|
|
|
(282)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
305
|
|
|
|
|
337
|
|
|
|
|
—
|
|
|
|
|
(32)
|
|
4
|
|
Other income
(expense)
|
|
350
|
|
|
|
|
76
|
|
|
|
|
24
|
|
|
|
|
250
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
6,455
|
|
|
|
|
5,992
|
|
|
|
|
463
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
1,377
|
|
|
|
|
1,274
|
|
|
|
|
103
|
|
|
|
|
—
|
|
|
|
Profit of
consolidated companies
|
|
5,078
|
|
|
|
|
4,718
|
|
|
|
|
360
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
21
|
|
|
|
|
21
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
345
|
|
|
|
|
—
|
|
|
|
|
(345)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
5,099
|
|
|
|
|
5,084
|
|
|
|
|
360
|
|
|
|
|
(345)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
—
|
|
|
|
|
(15)
|
|
|
|
|
15
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
5,099
|
|
|
|
$
|
5,099
|
|
|
|
$
|
345
|
|
|
|
$
|
(345)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc
Supplemental Data
for Cash Flow
For the Nine
Months Ended September 30, 2019
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
4,997
|
|
|
|
$
|
4,980
|
|
|
|
$
|
439
|
|
|
|
$
|
(422)
|
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,933
|
|
|
|
|
1,283
|
|
|
|
|
650
|
|
|
|
|
—
|
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(422)
|
|
|
|
|
—
|
|
|
|
|
422
|
|
3
|
|
|
Other
|
|
627
|
|
|
|
|
395
|
|
|
|
|
(111)
|
|
|
|
|
343
|
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
427
|
|
|
|
|
125
|
|
|
|
|
(16)
|
|
|
|
|
318
|
|
4,5
|
|
|
Inventories
|
|
(676)
|
|
|
|
|
(702)
|
|
|
|
|
—
|
|
|
|
|
26
|
|
4
|
|
|
Accounts
payable
|
|
(669)
|
|
|
|
|
(651)
|
|
|
|
|
6
|
|
|
|
|
(24)
|
|
4
|
|
|
Accrued
expenses
|
|
114
|
|
|
|
|
105
|
|
|
|
|
11
|
|
|
|
|
(2)
|
|
4
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(858)
|
|
|
|
|
(865)
|
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
Customer
advances
|
|
169
|
|
|
|
|
171
|
|
|
|
|
—
|
|
|
|
|
(2)
|
|
4
|
|
|
Other assets –
net
|
|
3
|
|
|
|
|
(47)
|
|
|
|
|
47
|
|
|
|
|
3
|
|
4
|
|
|
Other liabilities –
net
|
|
(1,589)
|
|
|
|
|
(1,740)
|
|
|
|
|
144
|
|
|
|
|
7
|
|
4
|
Net cash provided by
(used for) operating activities
|
|
4,478
|
|
|
|
|
2,632
|
|
|
|
|
1,177
|
|
|
|
|
669
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(723)
|
|
|
|
|
(709)
|
|
|
|
|
(14)
|
|
|
|
|
—
|
|
|
|
Expenditures for
equipment leased to others
|
|
(1,133)
|
|
|
|
|
(21)
|
|
|
|
|
(1,151)
|
|
|
|
|
39
|
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
812
|
|
|
|
|
149
|
|
|
|
|
766
|
|
|
|
|
(103)
|
|
4
|
|
Additions to finance
receivables
|
|
(9,453)
|
|
|
|
|
—
|
|
|
|
|
(10,633)
|
|
|
|
|
1,180
|
|
5
|
|
Collections of
finance receivables
|
|
9,144
|
|
|
|
|
—
|
|
|
|
|
10,166
|
|
|
|
|
(1,022)
|
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
763
|
|
|
|
|
(763)
|
|
5
|
|
Proceeds from sale of
finance receivables
|
|
183
|
|
|
|
|
—
|
|
|
|
|
183
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
721
|
|
|
|
|
1
|
|
|
|
|
(722)
|
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(6)
|
|
|
|
|
(6)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
3
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
securities
|
|
281
|
|
|
|
|
16
|
|
|
|
|
265
|
|
|
|
|
—
|
|
|
|
Investments in
securities
|
|
(425)
|
|
|
|
|
(16)
|
|
|
|
|
(409)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(37)
|
|
|
|
|
1
|
|
|
|
|
(38)
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(1,354)
|
|
|
|
|
138
|
|
|
|
|
(101)
|
|
|
|
|
(1,391)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,564)
|
|
|
|
|
(1,564)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
59
|
|
|
|
|
59
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Common shares
repurchased
|
|
(3,283)
|
|
|
|
|
(3,283)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(1)
|
|
|
|
|
(721)
|
|
|
|
|
722
|
|
6
|
|
Proceeds from debt
issued > 90 days
|
|
8,827
|
|
|
|
|
1,479
|
|
|
|
|
7,348
|
|
|
|
|
—
|
|
|
|
Payments on debt >
90 days
|
|
(6,062)
|
|
|
|
|
(8)
|
|
|
|
|
(6,054)
|
|
|
|
|
—
|
|
|
|
Short-term borrowings
– net < 90 days
|
|
(1,006)
|
|
|
|
|
—
|
|
|
|
|
(1,006)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(2)
|
|
|
|
|
(2)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,031)
|
|
|
|
|
(3,320)
|
|
|
|
|
(433)
|
|
|
|
|
722
|
|
|
Effect of exchange
rate changes on cash
|
|
(47)
|
|
|
|
|
(38)
|
|
|
|
|
(9)
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
46
|
|
|
|
|
(588)
|
|
|
|
|
634
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning
of period
|
|
7,890
|
|
|
|
|
6,994
|
|
|
|
|
896
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,936
|
|
|
|
$
|
6,406
|
|
|
|
$
|
1,530
|
|
|
|
$
|
—
|
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis
|
2
|
Elimination of
Financial Products' profit after tax due to equity method of
accounting
|
3
|
Elimination of
non-cash adjustment for the undistributed earnings from Financial
Products
|
4
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting
|
5
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory
|
6
|
Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products
|
|
|
Caterpillar
Inc
Supplemental Data
for Cash Flow
For the Nine
Months Ended September 30, 2018
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
5,099
|
|
|
|
$
|
5,084
|
|
|
|
$
|
360
|
|
|
|
$
|
(345)
|
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,065
|
|
|
|
|
1,410
|
|
|
|
|
655
|
|
|
|
|
—
|
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(345)
|
|
|
|
|
—
|
|
|
|
|
345
|
|
3
|
|
|
Other
|
|
630
|
|
|
|
|
327
|
|
|
|
|
36
|
|
|
|
|
267
|
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
(725)
|
|
|
|
|
19
|
|
|
|
|
(33)
|
|
|
|
|
(711)
|
|
4,5
|
|
|
Inventories
|
|
(1,822)
|
|
|
|
|
(1,774)
|
|
|
|
|
—
|
|
|
|
|
(48)
|
|
4
|
|
|
Accounts
payable
|
|
496
|
|
|
|
|
544
|
|
|
|
|
(55)
|
|
|
|
|
7
|
|
4
|
|
|
Accrued
expenses
|
|
(32)
|
|
|
|
|
(63)
|
|
|
|
|
31
|
|
|
|
|
—
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(418)
|
|
|
|
|
(403)
|
|
|
|
|
(15)
|
|
|
|
|
—
|
|
|
|
|
Customer
advances
|
|
59
|
|
|
|
|
59
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Other assets –
net
|
|
394
|
|
|
|
|
343
|
|
|
|
|
(9)
|
|
|
|
|
60
|
|
4
|
|
|
Other liabilities –
net
|
|
(1,271)
|
|
|
|
|
(1,321)
|
|
|
|
|
110
|
|
|
|
|
(60)
|
|
4
|
Net cash provided by
(used for) operating activities
|
|
4,475
|
|
|
|
|
3,880
|
|
|
|
|
1,080
|
|
|
|
|
(485)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(921)
|
|
|
|
|
(822)
|
|
|
|
|
(99)
|
|
|
|
|
—
|
|
|
|
Expenditures for
equipment leased to others
|
|
(1,208)
|
|
|
|
|
(23)
|
|
|
|
|
(1,258)
|
|
|
|
|
73
|
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
732
|
|
|
|
|
122
|
|
|
|
|
632
|
|
|
|
|
(22)
|
|
4
|
|
Additions to finance
receivables
|
|
(9,092)
|
|
|
|
|
—
|
|
|
|
|
(10,151)
|
|
|
|
|
1,059
|
|
5,7
|
|
Collections of
finance receivables
|
|
8,032
|
|
|
|
|
—
|
|
|
|
|
9,135
|
|
|
|
|
(1,103)
|
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(484)
|
|
|
|
|
484
|
|
5
|
|
Proceeds from sale of
finance receivables
|
|
416
|
|
|
|
|
—
|
|
|
|
|
416
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
66
|
|
|
|
|
—
|
|
|
|
|
(66)
|
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(357)
|
|
|
|
|
(357)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
14
|
|
|
|
|
20
|
|
|
|
|
—
|
|
|
|
|
(6)
|
|
7
|
|
Proceeds from sale of
securities
|
|
363
|
|
|
|
|
154
|
|
|
|
|
209
|
|
|
|
|
—
|
|
|
|
Investments in
securities
|
|
(417)
|
|
|
|
|
(21)
|
|
|
|
|
(396)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
24
|
|
|
|
|
25
|
|
|
|
|
(2)
|
|
|
|
|
1
|
|
8
|
Net cash provided by
(used for) investing activities
|
|
(2,414)
|
|
|
|
|
(836)
|
|
|
|
|
(1,998)
|
|
|
|
|
420
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,444)
|
|
|
|
|
(1,444)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
292
|
|
|
|
|
292
|
|
|
|
|
1
|
|
|
|
|
(1)
|
|
8
|
|
Common shares
repurchased
|
|
(2,000)
|
|
|
|
|
(2,000)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(66)
|
|
|
|
|
66
|
|
6
|
|
Proceeds from debt
issued > 90 days
|
|
7,073
|
|
|
|
|
47
|
|
|
|
|
7,026
|
|
|
|
|
—
|
|
|
|
Payments on debt >
90 days
|
|
(5,642)
|
|
|
|
|
(6)
|
|
|
|
|
(5,636)
|
|
|
|
|
—
|
|
|
|
Short-term borrowings
– net < 90 days
|
|
(465)
|
|
|
|
|
14
|
|
|
|
|
(479)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(32)
|
|
|
|
|
(32)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(2,218)
|
|
|
|
|
(3,129)
|
|
|
|
|
846
|
|
|
|
|
65
|
|
|
Effect of exchange
rate changes on cash
|
|
(117)
|
|
|
|
|
(106)
|
|
|
|
|
(11)
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
(274)
|
|
|
|
|
(191)
|
|
|
|
|
(83)
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning
of period
|
|
8,320
|
|
|
|
|
7,416
|
|
|
|
|
904
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
8,046
|
|
|
|
$
|
7,225
|
|
|
|
$
|
821
|
|
|
|
$
|
—
|
|
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis
|
|
2
|
Elimination of
Financial Products' profit after tax due to equity method of
accounting
|
|
3
|
Elimination of
non-cash adjustment for the undistributed earnings from Financial
Products
|
|
4
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting
|
|
5
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory
|
|
6
|
Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products
|
|
7
|
Elimination of
proceeds received from Financial Products related to Machinery,
Energy & Transportation's sale of businesses and
investments
|
|
8
|
Elimination of change
in investment and common stock related to Financial
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP
financial measures. These non-GAAP financial measures have no
standardized meaning prescribed by U.S. GAAP and therefore are
unlikely to be comparable to the calculation of similar measures
for other companies. Management does not intend these items to
be considered in isolation or as a substitute for the related GAAP
measures.
Adjusted Profit Per Share
The company believes it is important to separately quantify the
profit impact of three significant items in order for the company's
results to be meaningful to readers. These items consist of (i) a
discrete tax benefit related to U.S. tax reform in the first
quarter of 2019, (ii) restructuring costs in 2018, which were
incurred to generate longer-term benefits and (iii) a net tax
benefit to adjust deferred tax balances in the third quarter of
2018. The company does not consider these items indicative of
earnings from ongoing business activities and believes the non-GAAP
measure provides investors with useful perspective on underlying
business results and trends and aids with assessing the company's
period-over-period results. The company intends to discuss adjusted
profit per share for the fourth quarter and full-year 2019,
excluding a mark-to-market gain or loss for remeasurement of
pension and other postemployment benefit plans along with any other
discrete items.
Reconciliations of adjusted profit per share to the most
directly comparable GAAP measure, diluted profit per share, are as
follows:
|
Third
Quarter
|
|
Full-Year
Outlook
|
|
|
|
2018
|
|
2019
|
|
Previous1
|
|
Current2
|
|
|
Profit per
share
|
$2.88
|
|
$2.66
|
|
$12.06-$13.06
|
|
$10.90-$11.40
|
|
|
Per share U.S. tax
reform impact
|
—
|
|
—
|
|
($0.31)
|
|
($0.31)
|
|
|
Per share
restructuring costs3
|
$0.14
|
|
—
|
|
—
|
|
—
|
|
|
Per share deferred
tax balance adjustment
|
($0.16)
|
|
—
|
|
—
|
|
—
|
|
|
Adjusted profit per
share
|
$2.86
|
|
$2.66
|
|
$11.75-$12.75
|
|
$10.59-$11.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Profit per share outlook range as
of July 24, 2019
|
2 Profit per share outlook range as
of October 23, 2019
|
3 2018 restructuring costs at an
estimated annual tax rate of 24%. 2019 restructuring costs are not
material
|
|
View original
content:http://www.prnewswire.com/news-releases/caterpillar-reports-third-quarter-2019-results-300943821.html
SOURCE Caterpillar Inc.