Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q2 2016 Earnings Presentation
11 slides from Caterpillar's earnings presentation, Jul 26, 2016
Slide 1: Second-Quarter 2016 Financial Review
Second-Quarter 2016 Financial Review July 26, 2016 CUSTOMERS. PEOPLE. STOCKHOLDERS. 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking Statements Certain statements in this financial review 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,” “w
Slide 3: Discussion
Discussion • 2nd Quarter 2016 Results / 2016 Outlook Mike DeWalt • Q&A Doug Oberhelman Brad Halverson Mike DeWalt CUSTOMERS. PEOPLE. STOCKHOLDERS. 3
Slide 4: Q2 2016 vs Q2 2015 Financial Results
Sales and Revenues and Profit Per Share Q2 2016 vs Q2 2015 Financial Results excluding restructuring costs were lower than Q2 2015, but better than expected 2nd Quarter 2015 2016 Change Sales and Revenues (billions) $12.3 $10.3 $(2.0) Profit Per Share $1.31 $0.93 $(0.38) Restructuring Costs (million
Slide 5: Sales & Revenues Change Q2 2016 vs Q2 2015
Sales & Revenues Change Q2 2016 vs Q2 2015 2nd Quarter (billions of dollars) 2015 2016 Change Oil & Gas made up half of the decline, about a quarter was Transportation. Power Generation Energy & Transportation $4.708 $3.750 $(0.958) and Industrial sales were also down Most of the decline was from lo
Slide 6: Consolidated Operating Profit Comparison Q2 2016 vs Q2 2015
2nd Quarter 2016 vs 2nd Quarter 2015 Period and variable cost reduction Q1 2016 vs Q1 2015 $ 474 million Operating Profit Comparison Q2 2016 vs Q2 2015 $ 670 million Year-to-date $ 1,144 million Consolidated Operating Profit Comparison Second Quarter 2016 vs. Second Quarter 2015 1,400 1,333 (905) 1,
Slide 7: 2016 Cost Reduction
2016 Cost Reduction On track for over $2 billion of period and variable cost reduction for the full year of 2016 (millions of dollars) Cost Reduction versus Prior Year 1st Qtr 2nd Qtr 1st Half Variable Cost Reduction $ 107 $ 243 $ 350 Period Cost Reduction 367 427 794 Total $ 474 $ 670 $ 1,144 Three
Slide 8: Full-Year Outlook for 2016
Full-Year Outlook for 2016 • We are expecting sales and revenues near the bottom of the previous $40 to $42 billion outlook range … because economic risks have persisted, Brexit adds uncertainty • Our sales and revenues expectation ($40.0 to $40.5 billion) is similar to the analyst consensus • Outlo
Slide 9: First-Half 2016 vs Second-Half 2016
First-Half 2016 vs Second-Half 2016 2016 First-Half Second-Half Actual Outlook Change Sales and Revenues (billions) $19.80 $20.45 $0.65 Profit Per Share $1.40 $1.35 $(0.05) Restructuring Costs (millions) $300 $400 $100 Profit Per Share $1.73 $1.82 $0.09 Excluding Restructuring Costs Sales & Revenues
Slide 10: Discussion Points
Discussion Points • Not much change in the industries we serve – Construction is relatively steady, but with continuing price pressure. No clear signs of recovery in mining, oil & gas or rail • Good operational performance continues – Overall market position for our machines was better in Q2 2016 th
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures The following definition is provided for “non-GAAP financial measures” in connection with Regulation G issued by the Securities and Exchange Commission. The non-GAAP financial measures we use have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely