Caterpillar, Inc. · NYSE:CAT
Caterpillar — Q2 2020 Earnings Presentation
17 slides from Caterpillar's earnings presentation, Jul 31, 2020
Slide 1: Second Quarter 2020 Financial Review
Second Quarter 2020 Financial Review July 31, 2020 | 1
Slide 2: Forward-Looking Statements
2Q 2020 EARNINGS RELEASE 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,” “wil
Slide 3: COVID-19 and Business Update
COVID-19 and Business Update Supporting our customers doing Dedicated to the health and essential business safety of our global team Continued focus on Well positioned with flexible and strong balance competitive cost sheet and liquidity structure | 3
Slide 4: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results Sales Operating Profit & Revenues Profit Margin Per Share1 $10.0B 7.8% $0.84 (31%) (7.5pts) (70%) 1 Second-quarter 2020 profit per share included remeasurement losses of $0.19 per share resulting from settlements of pension obligations. | 4
Slide 5: End Markets by Segment
End Markets by Segment CONSTRUCTION INDUSTRIES ENERGY & TRANSPORTATION RESOURCE INDUSTRIES | 5
Slide 6: Executing Our Strategy
Executing Our Strategy Focused on operational excellence, continue to invest in enablers of services growth, including enhancing our digital capabilities, and expanded offerings Prepared to respond to changes in demand, positive or negative | 6
Slide 7: 2020 Financial Results
2020 Financial Results Second Quarter 2020 vs. Second Quarter 2019 SALES & REVENUES OPERATING PROFIT PROFIT PER SHARE1 (in billions of dollars) (in millions of dollars) (in dollars) $14.4 $2.83 $2,213 $10.0 $784 $0.84 2018 2019 2020 2019 2020 2019 2019 2020 1 Second-quarter 2020 profit per share inc
Slide 8: 2nd Quarter Highlights: Consolidated Sales & Revenues
Consolidated Sales & Revenues Second Quarter 2020 vs. Second Quarter 2019 16,000 14,432 (3,912) 14,000 12,000 2nd Quarter Highlights (259) (190) (74) 9,997 Sales & Revenues Decreased ($4.4B) or (31%) 10,000 Millions of $ • Sales volume decreased across the three primary 8,000 segments and all region
Slide 9: 2nd Quarter Highlights: Consolidated Operating Profit
Consolidated Operating Profit Second Quarter 2020 vs. Second Quarter 2019 2,500 2,213 (1,510) 2nd Quarter Highlights 2,000 Operating Profit Decreased ($1.4B) or (65%) 1,500 • Decreased sales volume Millions of $ • Unfavorable price realization 211 (54) (33) • Favorable manufacturing costs and lower
Slide 10: Energy & Transportation
Energy & Transportation Second Quarter 2020 vs. Second Quarter 2019 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 Decreased ($1,337M) or (24%) • Oil and Gas – Lower demand for reciprocating
Slide 11: Construction Industries
Construction Industries Second Quarter 2020 vs. Second Quarter 2019 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 Decreased ($2,419M) or (37%) $6.5 • North America – Decrease due to lower e
Slide 12: Resource Industries
Resource Industries Second Quarter 2020 vs. Second Quarter 2019 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 Decreased ($993M) or (35%) • Decrease due to changes in dealer inventories and
Slide 13: Financial Products
Financial Products Second Quarter 2020 vs. Second Quarter 2019 Total Revenues* Segment Profit (in millions of dollars) (in millions of dollars) 2nd Quarter Highlights $873 Total Revenues Decreased ($110M) or (13%) $763 $193 • Lower average financing rates $148 • Lower average earning assets Segment
Slide 14: 3Q 2020 Key Thoughts
3Q 2020 Key Thoughts • Expect normal seasonality • Anticipate a similar percentage decline in end-user demand as in 2Q • Expect dealers to reduce inventory levels in 3Q similar to prior year • Gross margin expected to be impacted by lapping 2H 2019 reductions in material costs • Ongoing benefits fro
Slide 15: Capital Allocation, Cash and Liquidity Position
Capital Allocation, Cash and Liquidity Position Returned to Enterprise Cash Available Liquidity Shareholders in 2Q 2020 Balance Sources $0.6B $8.8B $18.5B Share repurchases suspended Strong Financial Position $10.5B revolver through year end $4.1B of commercial paper support programs $3.9B of short-
Slide 16: Key Takeaways
Key Takeaways Strong financial position; Returned $2.3B to Managing Our strategy is working; $8.8B enterprise cash shareholders YTD through operations We continue to and access to dividends and share to respond to changes in manage costs $18.5B of liquidity repurchases demand, positive or negative w
Slide 17: Q&A
2Q 2020 EARNINGS RELEASE Q&A | 17