Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q3 2016 Earnings Presentation
12 slides from Caterpillar's earnings presentation, Oct 25, 2016
Slide 1: Third-Quarter 2016 Financial Review
Third-Quarter 2016 Financial Review October 25, 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 • 3rd Quarter 2016 Results Mike DeWalt • 2016 Outlook • 2017 Preliminary Sales Outlook • Q&A Doug Oberhelman Jim Umpleby Brad Halverson Mike DeWalt CUSTOMERS. PEOPLE. STOCKHOLDERS. 3
Slide 4: Q3 2016 vs Q3 2015 Financial Results
Restructuring and cost reduction actions have Q3 2016 vs Q3 2015 Financial Results helped mitigate the impact of lower sales 3rd Quarter 2015 2016 Change Sales and Revenues (billions) $11.0 $9.2 $(1.8) Profit Per Share $0.94 $0.48 $(0.46) Restructuring Costs (millions) $98 $324 $226 Profit Per Share
Slide 5: Sales & Revenues Change Q3 2016 vs Q3 2015
Sales & Revenues Change Q3 2016 vs Q3 2015 3rd Quarter (billions of dollars) 2015 2016 Change Transportation represented the most significant Energy & Transportation $4.352 $3.534 $(0.818) decline followed by Power Generation, Oil and Gas and Industrial engines. The sales decline was about two-third
Slide 6: Operating Profit Comparison Q3 2016 vs Q3 2015
Q3 2016 vs Q3 2015 Operating Profit Comparison Machine market position and cost structure continue to improve Quality remains at high levels and safety is world class Millions of dollars Substantial Cost Reduction is mitigating much of the impact of lower sales CUSTOMERS. PEOPLE. STOCKHOLDERS. 6
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 3rd Qtr 9 Months Variable Cost Reduction $ 107 $ 243 $ 234 $ 584 Period Cost Reduction 367 427 420 1,214 Total $ 474
Slide 8: Full-Year Outlook for 2016
Full-Year Outlook for 2016 Previous Outlook Current Outlook Sales and revenues $40.0 to $40.5 billion About $39 billion Profit Per Share $2.75 $2.35 Restructuring Costs $700 million $800 million Profit Per Share Excluding $3.55 $3.25 Restructuring Costs • Sales expectations lowered across our three
Slide 9: 4Q 2016 Expectations vs. 3Q 2016
4Q 2016 Expectations vs. 3Q 2016 2016 4th Qtr 3rd Qtr Implied Outlook Change Sales and Revenues (billions) $9.2 $10.0 $0.8 Profit Per Share $0.48 $0.47 $(0.01) Restructuring Costs (millions) $324 $176 $(148) Profit Per Share $0.85 $0.67 $(0.18) Excluding Restructuring Costs 4th Quarter sales increas
Slide 10: Preliminary 2017 Sales and Revenues Outlook
Preliminary 2017 Cautious about the first half of the year, with potential Sales and Revenues Outlook for improvement later in 2017 and beyond if commodity-related industries begin to recover • We usually provide a preliminary view of the following year’s sales and revenues with our 3rd Quarter fina
Slide 11: Discussion Points
Discussion Points • Not much recent change in the industries we serve with the exception of North American Construction – More stable commodity prices, but no significant rebound in order activity in mining or oil and gas yet … rail continues to be weak in North America. • Good operational performan
Slide 12: 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