Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q4 2016 Earnings Presentation
13 slides from Caterpillar's earnings presentation, Jan 26, 2017
Slide 1: Year-End 2016 Financial Review
Year-End 2016 Financial Review January 26, 2017 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 • 4th Quarter & Full Year 2016 Results Mike DeWalt • 2017 Outlook • Q&A Jim Umpleby Brad Halverson Mike DeWalt Amy Campbell CUSTOMERS. PEOPLE. STOCKHOLDERS. 3
Slide 4: Q4 2016 vs Q4 2015 Financial Results
Q4 2016 vs Q4 2015 Financial Results 4th Quarter 2015 2016 Change Sales and Revenues (billions) $11.030 $9.574 $(1.456) Profit Per Share $(0.16) $(2.00) $(1.84) Adjusted Profit Per Share $0.83 $0.83 $0.00 Sales and Revenues Change Primary Drivers of Profit Change • $(0.7) billion Energy & Transporta
Slide 5: Sales & Revenues Change Q4 2016 vs Q4 2015
Sales & Revenues Change Q4 2016 vs Q4 2015 4th Quarter (billions of dollars) 2015 2016 Change Transportation represented the most significant Energy & Transportation $4.544 $3.849 $(0.695) decline followed by Oil & Gas and Power Generation. Most of the decline was from lower end-user demand for new
Slide 6: Operating Profit / (Loss) Comparison
Q4 2016 vs Q4 2015 Operating Profit / (Loss) Comparison Millions of dollars Lower Costs are mitigating much of the impact of lower sales CUSTOMERS. PEOPLE. STOCKHOLDERS. 6
Slide 7: Full Year 2016 Financial Results
Full Year 2016 Financial Results Full Year 2015 2016 Change Sales and Revenues (billions) $47.011 $38.537 $(8.474) Profit Per Share $4.18 $(0.11) $(4.29) Adjusted Profit Per Share $5.35 $3.42 $(1.93) Drivers of Profit Change Drivers of Adjusted Profit Change Items excluded from Adjusted Profit 2016
Slide 8: Period & Variable Costs
Period & Variable Costs Costs Lower $2.3 Billion in 2016 Change vs Prior Year (millions of dollars) 4th Qtr 2016 Variable Cost Reduction $ 91 $ 675 Period Cost Reduction 401 1,650 Total $ 492 $ 2,325 Three Main Areas of 2016 Cost Reduction Restructuring Material Costs Everything Else • Combined and
Slide 9: Background – Major Restructuring Announced Q3 2015
Background – Major Restructuring Announced Q3 2015 When • On September 24, 2015, we announced substantial restructuring actions that we expected to occur through 2018 • Close or consolidate more than 20 facilities What • Reduce manufacturing floor space by 10% • Reduce workforce by 10,000 • We expec
Slide 10: Restructuring – What's Happened
Restructuring – What’s Happened Substantial Period Cost Reduction Already • We’ve completed, announced or are in the process of implementing Actions almost all of the actions from our Q3 2015 announcement. That’s involved the consolidation or closure more than 30 facilities, and reduction in manufac
Slide 11: Restructuring – What's Ahead
Restructuring – What’s Ahead • In 2017, at the midpoint of our outlook, we anticipate an additional reduction in our period costs of more than $500 million (excluding short-term incentive compensation expense and labor cost inflation). • That means that by the end of 2017, our period cost structure
Slide 12: 2017 Sales and Revenues Outlook
2017 Sales and Revenues Outlook Positive signs in several parts of the business, but prudently cautious in the outlook for 2017 2016 Actual 2017 Outlook Sales and Revenues $38.5 billion $36-39 billion Profit Per Share $ (0.11) $ 2.30 Adjusted Profit Profit Per Share $ 3.42 $ 2.90 At the midpoint of
Slide 13: Discussion Points
Discussion Points • 2017 Outlook consistent with what we said in early December 2016 • Good operational performance continues – in particular, good progress on lowering our cost structure. • We are on track with restructuring actions – They’ve contributed substantially to cost reduction this year. A