Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q1 2018 Earnings Presentation
14 slides from Caterpillar's earnings presentation, Apr 24, 2018
Slide 1: First Quarter 2018 Financial Review
First Quarter 2018 Financial Review April 24, 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 • First Quarter 2018 Financial Results • Full Year 2018 Outlook • Cash Deployment Strategy • Key Takeaways 3
Slide 4: 2018 Financial Results
2018 Financial Results First Quarter 2018 vs. First Quarter 2017 Adjusted 1st Quarter Highlights Sales and Revenues Profit Per Share Profit Per Share1 (in billions of dollars) (in dollars) (in dollars) Sales and Revenues • Increased across all regions and most $12.9 $2.74 $2.82 end markets • About h
Slide 5: Consolidated Operating Profit
Consolidated Operating Profit First Quarter 2018 vs. First Quarter 2017 1st Quarter Highlights 654 32 2,108 $2,000 • Higher sales volume across the three primary segments 186 21 (130) $1,500 (6) (48) • Favorable price realization 1,019 Millions of $ • Manufacturing costs about flat on $1,000 31% hig
Slide 6: Construction Industries
Construction Industries First Quarter 2018 vs. First Quarter 2017 1st Quarter Highlights Total Sales* Segment Profit Segment Profit Total Sales (in billions of dollars) (in millions of dollars) as a percent of total sales* • Favorable changes in dealer inventories as dealers built inventory $1,117 1
Slide 7: Resource Industries
Resource Industries First Quarter 2018 vs. First Quarter 2017 1st Quarter Highlights Total Sales* Segment Profit Segment Profit Total Sales (in billions of dollars) (in millions of dollars) as a percent of total sales* • Increased in all regions $2.3 $378 16.4% • Mining equipment sales improved • Af
Slide 8: Energy & Transportation
Energy & Transportation First Quarter 2018 vs. First Quarter 2017 1st Quarter Highlights Total Sales* Segment Profit Segment Profit Total Sales (in billions of dollars) (in millions of dollars) as a percent of total sales* • Sales increased across all applications primarily due to: $5.2 $874 16.7% •
Slide 9: Full Year 2018 Outlook
Full Year 2018 Outlook Full-Year Previous Outlook2 Current Outlook3 Profit Per Share $7.75 – $8.75 $9.75 – $10.75 Restructuring Costs ~$400 million ~$400 million Adjusted Profit Per Share1 $8.25 – $9.25 $10.25 – $11.25 1 Excludes restructuring costs 2 As of January 25, 2018 3 As of April 24, 2018 9
Slide 10: 2018 Outlook – Changes from Prior Outlook
2018 Outlook – Changes from Prior Outlook Higher sales volume primary driver of improved outlook • Improvements across all regions and most end markets • Increases across the three primary segments Continue to manage structural costs while making targeted investments to achieve long-term profita
Slide 11: 2018 Outlook – End Market Assumptions
2018 Outlook – End Market Assumptions Construction Industries Resource Industries Energy & Transportation North America – strength in building Favorable commodity price levels driving Oil and Gas – strength in well servicing construction, infrastructure and pipeline higher production, declinin
Slide 12: Cash Deployment Strategy
Cash Deployment Full-Year Strategy 2018 Outlook Disciplined, balanced capital allocation aligned with enterprise focus on profitable growth Cash Deployment Priorities Maintain Financial Strength / Mid-A Rating Operational Excellence & Commitments Excess Cash Discretionary Cash Deployment Priorities
Slide 13: Key Takeaways
Key Takeaways Record first-quarter Robust global Strong profit per share economic conditions balance sheet Continued cost discipline and Executing our strategy and investing strong operating margins for long-term profitable growth 13
Slide 14: Caterpillar
CATERPILLAR’