Caterpillar, Inc. · NYSE:CAT
Caterpillar — Jefferies 2016 Industrials Conference
17 slides from Caterpillar's conference presentation, Aug 11, 2016
Slide 1: Jefferies Conference
Jefferies Conference August 11, 2016 Jim Umpleby – Caterpillar Group President – Energy & Transportation Amy Campbell – Caterpillar IR Director 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 Amy Campbell • Energy & Transportation Jim Umpleby • Q&A 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 Sales and Revenues Change Primary Drivers of Profit Change • $(1.0) billion Energy & Transportation • Sales volume / mix unfavorable $905 milli
Slide 5: 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 6: 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 • Outlook for profit is about $2.75 per share • Restructuring costs for 2016 are expected to be about $70
Slide 7: 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
Slide 8: Energy & Transportation
ENERGY & TRANSPORTATION POWER OIL & GAS INDUSTRIAL CAT MACHINES TRANSPORTATION GENERATION DIVERSE MARKETS, CUSTOMERS AND PRODUCTS CONFIDENTIAL RED. DO NOT COPY OR DISTRIBUTE. ENERGY & TRANSPORTATION CUSTOMERS. PEOPLE. STOCKHOLDERS. 8
Slide 9: E&T Q2 2016 vs Q2 2015 Financial Results
E&T Q2 2016 vs Q2 2015 Financial Results Q2 2015 benefited by strong oil & gas backlog. Comparisons will improve through remainder of 2016. (in millions) 2nd Quarter 2015 2016 Change Sales and Revenues $4,708 $3,750 $(958) Operating Profit $942 $602 $(340) Operating Profit % 17.2% 13.7% -3.5% Sales
Slide 10: E&T Full-Year Estimate for 2016
E&T Full-Year Estimate for 2016 • Previous E&T sales estimate was down about 15% from 2015 ... Latest view is down 15% - 20% • Declines from 2015 across all industries with the majority of the decline in Oil & Gas and Transportation Sales 2013 2014 2015 2016 Outlook ENERGY & TRANSPORTATION CUSTOMERS
Slide 11: Oil & Gas
OIL & GAS SOLUTIONS PROVIDER • Reciprocating Engines • Pumps & Transmissions • Gas Turbines & Compressors APPLICATIONS • Offshore & Land Drilling • Well Service • Production • Gas Compression ENERGY & TRANSPORTATION CUSTOMERS. PEOPLE. STOCKHOLDERS. 11
Slide 12: Power Generation
POWER GENERATION SOLUTIONS PROVIDER • Generator Sets (10kW – 22 MW) • Reciprocating Engines • Gas Turbines DIESEL & GAS • Data Centers • Telecommunications • Hospitals • Universities ENERGY & TRANSPORTATION CUSTOMERS. PEOPLE. STOCKHOLDERS. 12
Slide 13: Marine
MARINE SOLUTIONS PROVIDER • Marine Engines • Marine Auxiliary Units • Cat Propulsion Systems (Berg) APPLICATIONS • Cargo • Cruise and Ferry • High Performance • Commercial Workboat ENERGY & TRANSPORTATION CUSTOMERS. PEOPLE. STOCKHOLDERS. 13
Slide 14: Rail
RAIL SOLUTIONS PROVIDER • Freight and Transit Locomotives • Freight Car, Signal and Track Services ENERGY & TRANSPORTATION CUSTOMERS. PEOPLE. STOCKHOLDERS. 14
Slide 15: Industrial Engines
INDUSTRIAL ENGINES • Power Generation • Agriculture • Material Handling • Construction ENERGY & TRANSPORTATION CUSTOMERS. PEOPLE. STOCKHOLDERS. 15
Slide 16: Energy & Transportation
ENERGY & TRANSPORTATION Power Generation Industrial Oil & Gas Marine Rail ENERGY & TRANSPORTATION
Slide 17: Customers. People. Stockholders.
CUSTOMERS. PEOPLE. STOCKHOLDERS. 17