Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q3 2019 Earnings Presentation
16 slides from Caterpillar's earnings presentation, Oct 23, 2019
Slide 1: Third-Quarter 2019 Financial Review
Third-Quarter 2019 Financial Review October 23, 2019
Slide 2: 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,” “will,” “would,” “expect,” “a
Slide 3: 2019 Third-Quarter Results
2019 Third-Quarter Results Sales & Revenues Profit Per Share $12.8B (6%) $2.66 (8%) Volume decrease Lower Volume primarily in Retail Sales offset by Resource Dealer Inventory Statistics Operating Profit favorable Price Maintained Industries net impact of Operating Profit Positive decreased Realizati
Slide 4: Full-Year 2019 Outlook
Full-Year 2019 Outlook 2018 Previous Current Actual 2019 Outlook1 2019 Outlook1 Profit Per Share $10.26 $12.06 – $13.06 $10.90 – $11.40 Lower End of Range 1 The previous outlook as of July 24, 2019, and the current outlook as of October 23, 2019, include a first-quarter discrete tax benefit related
Slide 5: Executing Our Strategy
Executing Our Strategy Services Expanding digital capabilities: providing actionable insights with ~100,000 monthly inspections on Cat Inspect Operational Excellence Using lean to improve production efficiency: ~40% reduction in 3600 engine assembly time Expanded Offerings Industry-leading solutions
Slide 6: 2019 Financial Results
2019 Financial Results Third Quarter 2019 vs. Third Quarter 2018 Sales & Revenues Profit Per Share 3rd Quarter Highlights (in billions of dollars) (in dollars) Sales & Revenues Decreased ($752M) or (6%) $12.8 $2.66 Profit Per Share Decreased ($0.22) or (8%) $13.5 $12.8 Financial Position $2.88 $2.66
Slide 7: Consolidated Sales & Revenues
Consolidated Sales & Revenues Third Quarter 2019 vs. Third Quarter 2018 16,000 13,510 (751) 3rd Quarter Highlights 14,000 86 (124) 37 12,758 12,000 Sales & Revenues Decreased ($752M) or (6%) 10,000 • Sales decreased across the three primary segments Millions of $ • Decrease due to changes in dealer
Slide 8: Energy & Transportation
Energy & Transportation Third Quarter 2019 vs. Third Quarter 2018 3rd Quarter Highlights Total Sales* Segment Profit Segment Profit (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Decreased ($103M) or (2%) • Oil and Gas – Lower demand for reciprocating 18.7
Slide 9: Resource Industries
Resource Industries Third Quarter 2019 vs. Third Quarter 2018 Total Sales* Segment Profit Segment Profit 3rd Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Decreased ($327M) or (12%) $2.6 $2.3 $414 15.7% • Mining customers remain cautiou
Slide 10: Construction Industries
Construction Industries Third Quarter 2019 vs. Third Quarter 2018 3rd Quarter Highlights Total Sales* Segment Profit Segment Profit (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Decreased ($394M) or (7%) • North America – Favorable price realization and 1
Slide 11: Consolidated Operating Profit
Consolidated Operating Profit Third Quarter 2019 vs. Third Quarter 2018 2,500 2,135 (305) (54) 78 (54) 68 66 2,020 3rd Quarter Highlights 2,000 86 Operating Profit Decreased ($115M) or (5%) 1,500 • Lower sales volume Millions of $ • Favorable price realization, more than offsets manufacturing costs
Slide 12: Full-Year 2019 Outlook
Full-Year 2019 Outlook 2018 Previous Current Actual 2019 Outlook1 2019 Outlook1 Profit Per Share $10.26 $12.06 – $13.06 $10.90 – $11.40 Lower End of Range 1 The previous outlook as of July 24, 2019, and the current outlook as of October 23, 2019, include a first-quarter discrete tax benefit related
Slide 13: 3Q 2019 - Capital Structure
3Q 2019 - Capital Structure $1.8B Returned to Shareholders $7.9B Enterprise Cash Balance $0.6B Dividends Paid – 20% Increase $1.5B $1.2B Discretionary Pension Shares Repurchased Contribution 13
Slide 14: Key Takeaways
Key Takeaways Sales & Revenues Reduced 2019 PPS Proactively declined (6%); outlook range to managing PPS down (8%) $10.90 to $11.40 production Returned $1.8B to Executing our strategy Financial position shareholders in share and continuing to remains strong buybacks and dividends invest for long-ter
Slide 15: Q&A
O&A CATERPILLAR’
Slide 16: Preliminary 2020 Caterpillar Earnings Call Schedule
Preliminary 2020 Caterpillar Earnings Call Schedule Earnings Quarter Release Date Call Time 4th Quarter 2019 Friday, January 31, 2020 8:30 a.m. Eastern 1st Quarter 2020 Tuesday, April 28, 2020 8:30 a.m. Eastern 2nd Quarter 2020 Friday, July 31, 2020 8:30 a.m. Eastern 3rd Quarter 2020 Tuesday, Octobe