Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q2 2018 Earnings Presentation
16 slides from Caterpillar's earnings presentation, Jul 30, 2018
Slide 1: Second Quarter 2018 Financial Review
Second Quarter 2018 Financial Review July 30, 2018
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: Agenda
Agenda • Second Quarter 2018 Financial Results • Cash Deployment • Full Year 2018 Outlook • Key Takeaways 3
Slide 4: 2018 Financial Results
2018 Financial Results Second Quarter 2018 vs. Second Quarter 2017 Adjusted 2nd Quarter Highlights Sales and Revenues Profit Per Share Profit Per Share (in billions of dollars) (in dollars) (in dollars) Sales and Revenues – Up 24% • Increased across the three primary $14.0 $2.82 $2.97 1 segments • C
Slide 5: Consolidated Operating Profit
Investor Day Consolidated Operating Profit Operating Profit Second Quarter 2018 vs. Second Quarter 2017 Margin Range 14%-17% 2nd Quarter Highlights Operating profit up 83% • Higher sales volume across the three primary segments • Favorable price realization partially offset by higher manufacturing c
Slide 6: Construction Industries
Construction Industries Investor Day Segment Second Quarter 2018 vs. Second Quarter 2017 Margin Range 15%-17% 2nd Quarter Highlights Total Sales* Segment Profit Segment Profit (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increase – $1.2B (24%) • Sales in
Slide 7: Resource Industries
Resource Industries Investor Day Segment Second Quarter 2018 vs. Second Quarter 2017 Margin Range 12%-16% Total Sales* Segment Profit Segment Profit 2nd Quarter Highlights (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increase – $0.7B (38%) $2.5 • Commodi
Slide 8: Energy & Transportation
Energy & Transportation Investor Day Segment Second Quarter 2018 vs. Second Quarter 2017 Margin Range 16%-18% 2nd Quarter Highlights Total Sales* Segment Profit Segment Profit (in billions of dollars) (in millions of dollars) as a percent of total sales* Total Sales Increase – $0.9B (20%) • Sales in
Slide 9: ME&T Cash Deployment
ME&T Cash Deployment Cash Deployment Priorities Maintain Financial Strength / Mid-A Rating • Increased quarterly dividend $0.08 per share, or about 10% per share Operational Excellence & Commitments • Repurchased $750 million of common stock in Excess Cash 2Q; $1.25 billion YTD • New board authoriza
Slide 10: Full Year 2018 Outlook
Full Year 2018 Outlook Previous Outlook2 Current Outlook3 Profit Per Share Range $9.75 – $10.75 $10.50 – $11.50 Restructuring Costs ~$400 million ~$400 million Adjusted Profit Per Share Range1 $10.25 – $11.25 $11.00 – $12.00 1 Excludes restructuring costs 2 As of April 24, 2018 3 As of July 30, 2018
Slide 11: 2018 Outlook – End Market Assumptions
2018 Outlook – End Market Assumptions Slow to Recover Recovering Strong Demand Construction Industries: Resource Industries: Construction Industries: • Latin America • Mining Equipment • Asia/Pacific - China • North America • EAME Energy & Transportation: Energy & Transportation: Energy & Transporta
Slide 12: Consolidated
Consolidated Sales and Revenues and Adjusted Operating Profit Margin * *LTM – Last 12 Months (July 2017 – June 2018) 12
Slide 13: Key Takeaways
Key Takeaways Record second-quarter Raised full year Strong profit per share outlook range financial position Strong operating margins Executing our strategy and investing for long-term profitable growth 13
Slide 14: CATERPILLAR
CATERPILLAR’
Slide 15: Appendix
CATERPILLAR’
Slide 16: Caterpillar Inc. – Appendix of Reconciliation to US GAAP
Caterpillar Inc. – Appendix of Reconciliation to US GAAP * 2012 2013 2014 2015 2016 2017 LTM* 2Q 2018 Operating margin % 13.9% 11.1% 10.3% 7.8% 3.0% 9.8% 14.0% 15.5% Operating margin % restructuring costs - 0.4% 0.8% 1.8% 2.6% 2.7% 1.0% 0.8% Operating margin % goodwill impairment - - - - 1.6% - - -