DEERFIELD, Ill., April 24, 2018 /PRNewswire/ --
|
|
First
Quarter
|
|
|
|
|
|
($ in billions except
profit per share)
|
|
2018
|
|
2017
|
|
|
|
|
|
Sales and
Revenues
|
|
$12.9
|
|
$9.8
|
|
|
|
|
|
|
|
|
|
|
Profit Per
Share
|
|
$2.74
|
|
$0.32
|
|
|
|
|
|
|
|
|
|
|
Adjusted Profit
Per Share
|
|
$2.82
|
|
$1.28
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|
|
|
- First-quarter sales and revenues up 31 percent
- Significant increase in profit per share; adjusted profit per
share more than doubled
- Raised full-year profit per share outlook
- Repurchased $500 million of
common stock
Caterpillar Inc. (NYSE: CAT) today announced first-quarter 2018
sales and revenues of $12.9 billion,
compared with $9.8 billion in the
first quarter of 2017. First-quarter 2018 profit of $2.74 per share was a first-quarter record.
Profit was $0.32 per share in the
first quarter of 2017. Adjusted profit per share in
the first quarter of 2018 was $2.82,
compared with first-quarter 2017 adjusted profit per share of
$1.28.
Caterpillar's financial position remains strong. During the
first quarter of 2018, Machinery, Energy & Transportation
(ME&T) operating cash flow was $948 million and the company repurchased
$500 million of Caterpillar common
stock. The company ended the first quarter of 2018 with an
enterprise cash balance of $7.9
billion.
"I'd like to thank our global Caterpillar team for outstanding
results. The combination of strength in many of our end markets and
our team's continued focus on operational excellence - including
strong cost control - helped us deliver improved margins and a
record first-quarter profit," said Caterpillar CEO Jim Umpleby.
2018 Outlook
In January, Caterpillar provided a 2018 profit outlook range of
$7.75 to $8.75 per share. The company is increasing its
2018 profit outlook by $2.00 per
share to a range of $9.75 to
$10.75 per share, primarily due to
growing demand for products and services. The outlook includes
about $400 million of
restructuring costs, unchanged from the previous
outlook. The revised outlook range for adjusted profit is
$10.25 to $11.25 per share.
"Based on our strong first-quarter results and higher demand
across all regions and most end markets, we are raising our outlook
for 2018. We will continue to make targeted investments in expanded
offerings and services, consistent with our strategy for long-term
profitable growth," said Umpleby.
Following is a summary of sales assumptions for 2018 as compared
to 2017:
Construction Industries – The company expects
broad-based growth in all regions in 2018, with the biggest drivers
being continued strength for construction activity in North America and infrastructure development
in China. EAME is
expected to continue to grow amid high business confidence and
stability in oil-producing countries. The recovery that has started
in Latin America is
expected to continue.
Resource Industries – The company believes global
economic conditions and favorable commodity price levels will drive
miners to increase capital expenditures in 2018 for both equipment
replacement cycles and expansions. In addition, higher machine
utilization levels should support aftermarket parts growth. Strong
global demand for commodities is also expected to be a positive for
heavy construction and quarry and aggregate customers.
Energy & Transportation – Sales into Oil and
Gas applications are expected to increase in 2018, led by continued
strong demand for reciprocating engines for well servicing and gas
compression applications in North
America. The current turbines backlog remains healthy in
support of the midstream Oil and Gas business. Rail traffic in
North America has increased, with
reductions in the number of idled locomotives and railcars. As a
result, the company expects an increase in Transportation sales
primarily from growth in rail services. After a multi-year
downturn, the company expects Power Generation sales to increase as
global economic conditions improve. Sales of engines into
Industrial applications are expected to be up in 2018 primarily due
to projected demand in EAME.
Following are key elements of the revised 2018 profit
outlook:
- Better than expected sales volume is the primary
driver of the raised profit outlook, with higher volume expected
across the three primary segments when compared with the prior
outlook.
- Improved price realization is expected to be
partially offset by material cost increases primarily driven by
higher commodity prices.
- Despite the anticipated increase in volume, the company expects
period costs, excluding short-term incentive compensation expense,
to be in line with the prior outlook.
- Short-term incentive compensation expense is now expected to be
about $1.4 billion, nearly the same
as 2017.
- The outlook assumes continued global economic growth. Any
potential impacts from future geopolitical risks and increased
trade restrictions have not been included in the outlook.
- The outlook does not include a mark-to-market gain or loss for
remeasurement of pension and other postemployment benefit
(OPEB) plans or changes to provisional estimates recorded
in 2017 for U.S. tax reform.
Notes:
- Glossary of terms is included on pages 15-16; first
occurrence of terms shown in bold italics.
- Information on non-GAAP financial measures is included on
page 17.
- Caterpillar will conduct a teleconference and live webcast,
with a slide presentation, beginning at 10
a.m. Central Time on Tuesday, April 24, 2018, to discuss its
2018 first-quarter financial results. The accompanying slides will
be available before the webcast on the Caterpillar website at
http://www.caterpillar.com/investors/events-and-presentations.
About Caterpillar:
For more than 90 years,
Caterpillar Inc. has been making sustainable progress possible and
driving positive change on every continent. Customers turn to
Caterpillar to help them develop infrastructure, energy and natural
resource assets. With 2017 sales and revenues of $45.462 billion, Caterpillar is the world's
leading manufacturer of construction and mining equipment, diesel
and natural gas engines, industrial gas turbines and
diesel-electric locomotives. The company principally operates
through its three primary segments - Construction Industries,
Resource Industries and Energy & Transportation - and also
provides financing and related services through its Financial
Products segment. For more information, visit caterpillar.com. To
connect with us on social media, visit
caterpillar.com/social-media.
Forward-Looking Statements
Certain statements in this press release 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," "anticipate," "plan," "project," "intend," "could,"
"should" or other similar words or expressions often identify
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements, including, without
limitation, statements regarding our outlook, projections,
forecasts or trend descriptions. These statements do not guarantee
future performance and speak only as of the date they are made, and
we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) global and
regional economic conditions and economic conditions in the
industries we serve; (ii) commodity price changes, material price
increases, fluctuations in demand for our products or significant
shortages of material; (iii) government monetary or fiscal
policies; (iv) political and economic risks, commercial instability
and events beyond our control in the countries in which we operate;
(v) our ability to develop, produce and market quality products
that meet our customers' needs; (vi) the impact of the highly
competitive environment in which we operate on our sales and
pricing; (vii) information technology security threats and computer
crime; (viii) additional restructuring costs or a failure to
realize anticipated savings or benefits from past or future cost
reduction actions; (ix) failure to realize all of the anticipated
benefits from initiatives to increase our productivity, efficiency
and cash flow and to reduce costs; (x) inventory management
decisions and sourcing practices of our dealers and our OEM
customers; (xi) a failure to realize, or a delay in realizing, all
of the anticipated benefits of our acquisitions, joint ventures or
divestitures; (xii) union disputes or other employee relations
issues; (xiii) adverse effects of unexpected events including
natural disasters; (xiv) disruptions or volatility in global
financial markets limiting our sources of liquidity or the
liquidity of our customers, dealers and suppliers; (xv) failure to
maintain our credit ratings and potential resulting increases to
our cost of borrowing and adverse effects on our cost of funds,
liquidity, competitive position and access to capital markets;
(xvi) our Financial Products segment's risks associated with the
financial services industry; (xvii) changes in interest rates or
market liquidity conditions; (xviii) an increase in delinquencies,
repossessions or net losses of Cat Financial's customers; (xix)
currency fluctuations; (xx) our or Cat Financial's compliance with
financial and other restrictive covenants in debt agreements; (xxi)
increased pension plan funding obligations; (xxii) alleged or
actual violations of trade or anti-corruption laws and regulations;
(xxiii) international trade policies and their impact on demand for
our products and our competitive position; (xxiv) additional tax
expense or exposure, including the impact of U.S. tax reform; (xxv)
significant legal proceedings, claims, lawsuits or government
investigations; (xxvi) new regulations or changes in financial
services regulations; (xxvii) compliance with environmental laws
and regulations; and (xxviii) other factors described in more
detail in Caterpillar's Forms 10-Q, 10-K and other filings with the
Securities and Exchange Commission.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
First Quarter 2018 vs. First Quarter 2017
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 1Q 2018 earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Sales and Revenues between the first quarter of
2017 (at left) and the first quarter of 2018 (at right). Items
favorably impacting sales and revenues appear as upward stair steps
with the corresponding dollar amounts above each bar, while items
negatively impacting sales and revenues appear as downward stair
steps with dollar amounts reflected in parentheses above each bar.
Caterpillar management utilizes these charts internally to visually
communicate with the company's board of directors and
employees.
Sales and Revenues
Total sales and revenues were $12.859
billion in the first quarter of 2018, an increase of
$3.037 billion, or 31 percent,
compared with $9.822 billion in the
first quarter of 2017. The increase was primarily due to higher
sales volume driven by improved end-user demand across all regions
and most end markets as well as favorable changes in dealer
inventories. The impact of changes in dealer inventories was
favorable as there was a more significant increase in the first
quarter of 2018 than in the first quarter of 2017. The company
believes the increase in dealer inventories is reflective of
current end-user demand.
Strong end-user demand and favorable changes in dealer
inventories drove higher sales volume across the three primary
segments with the largest increase in Construction Industries.
Sales were also higher due to currency impacts,
primarily from a stronger euro and Chinese yuan. Favorable price
realization across the three primary segments also contributed to
the sales improvement.
The largest sales increase was in North America, which improved 33 percent as
strong economic conditions in key end markets drove higher end-user
demand. Also contributing to the increase was the impact of a more
significant increase in dealer inventories in the first quarter of
2018 than in the first quarter of 2017.
Asia/Pacific sales increased 44
percent mostly due to higher end-user demand, primarily for
construction equipment in China,
the impact of favorable changes in dealer inventories and a
stronger Chinese yuan. The impact of changes in dealer inventories
was favorable as dealer inventories increased slightly in the first
quarter of 2018, compared to a decrease in the first quarter of
2017.
EAME sales increased 25 percent primarily due to the impact of a
stronger euro, the impact of favorable changes in dealer
inventories and higher end-user demand as economic conditions have
improved. The impact of changes in dealer inventories was favorable
as increases were greater in the first quarter of 2018 than in the
first quarter of 2017.
Sales increased 24 percent in Latin
America primarily due to stabilizing economic conditions in
several countries in the region that resulted in improved demand
from low levels.
Consolidated Operating Profit
Consolidated Operating Profit Comparison
First Quarter 2018 vs. First Quarter 2017
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 1Q 2018 earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Operating Profit between the first quarter of 2017
(at left) and the first quarter of 2018 (at right). Items favorably
impacting operating profit appear as upward stair steps
with the corresponding dollar amounts above each bar, while items
negatively impacting operating profit appear as downward stair
steps with dollar amounts reflected in parentheses above each bar.
Caterpillar management utilizes these charts internally to visually
communicate with the company's board of directors and employees.
The bar entitled Other includes consolidating
adjustments and Machinery, Energy &
Transportation other operating (income) expenses.
Operating profit for the first quarter of 2018 was $2.108 billion, compared to $380 million in the first quarter of 2017. The
increase of $1.728 billion was mostly
due to higher sales volume and lower restructuring costs. Favorable
price realization was largely offset by higher selling, general and
administrative (SG&A) and research and development (R&D)
expenses and lower operating profit from Financial Products.
Manufacturing costs were about flat as lower
warranty expense and the favorable impact from cost absorption were
about offset by higher material costs, freight costs and short-term
incentive compensation expense. Cost absorption was favorable as
inventory increased more in the first quarter of 2018 than in the
first quarter of 2017, as production volumes continue to increase
in 2018. Material costs were unfavorable primarily due to increases
in steel prices. SG&A/R&D expenses were unfavorable mostly
due to higher short-term incentive compensation expense and
targeted investments that primarily impacted SG&A.
Restructuring costs were $69
million in the first quarter of 2018. In the first quarter
of 2017, restructuring costs of $723
million were primarily related to the announced closure of
the facility in Gosselies, Belgium.
Other Profit/Loss Items
- Interest expense excluding Financial Products in the
first quarter of 2018 was $101
million, a decrease of $22
million from the first quarter of 2017, primarily due to an
early debt retirement in the fourth quarter of 2017.
- Other income/expense in the first quarter of 2018 was
income of $127 million, compared with
income of $32 million in the first
quarter of 2017. The favorable change was primarily due to pension
and OPEB plans, including the absence of restructuring costs and
higher expected return on plan assets (see Q&A #7 for
additional information). Also contributing to the favorable change
were lower net losses from currency translation and hedging in the
first quarter of 2018 than in the first quarter of 2017.
- The provision for income taxes in the first quarter of
2018 reflects an estimated annual tax rate of 24 percent, compared
to 32 percent for the first quarter of 2017, excluding the discrete
items discussed in the following paragraph. The decrease is
primarily due to the reduction in the U.S. corporate tax rate
beginning January 1, 2018, along with
other changes in the geographic mix of profits from a tax
perspective.
In addition, a discrete tax benefit of $40 million was recorded in the first quarter of
2018, compared to $17 million in the
first quarter of 2017, for the settlement of stock-based
compensation awards with associated tax deductions in excess of
cumulative U.S. GAAP compensation expense. The provision for income
taxes in the first quarter of 2017 also included a $15 million increase to prior year taxes related
to non-U.S. restructuring costs.
Global Workforce
Caterpillar worldwide full-time employment was about 99,700 at
the end of the first quarter of 2018. The increase of about 4,400
full-time employees from the end of the first quarter of 2017 was
due to an increase in production employment primarily to support
higher volumes. Support and management employment was about flat.
The flexible workforce increased by about 6,500, also primarily due
to higher production volumes. In total, the global workforce
increased by about 10,900.
|
|
March
31
|
|
|
2018
|
|
2017
|
|
Increase
|
Full-time
employment
|
|
99,700
|
|
95,300
|
|
4,400
|
Flexible
workforce
|
|
19,100
|
|
12,600
|
|
6,500
|
Total
|
|
118,800
|
|
107,900
|
|
10,900
|
|
|
|
|
|
|
|
Geographic
Summary
|
|
|
|
|
|
|
U.S.
workforce
|
|
51,500
|
|
46,500
|
|
5,000
|
Non-U.S.
workforce
|
|
67,300
|
|
61,400
|
|
5,900
|
Total
|
|
118,800
|
|
107,900
|
|
10,900
|
SEGMENT RESULTS
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Geographic Region
|
|
|
North
America
|
|
Latin
America
|
|
EAME
|
|
Asia/Pacific
|
|
External Sales
and Revenues
|
|
Inter-Segment
|
|
Total Sales
and Revenues
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
|
First Quarter
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$2,620
|
|
37%
|
|
$344
|
|
38%
|
|
$1,067
|
|
31%
|
|
$1,628
|
|
46%
|
|
$5,659
|
|
38%
|
|
$18
|
|
100%
|
|
$5,677
|
|
38%
|
|
|
Resource
Industries
|
798
|
|
33%
|
|
360
|
|
34%
|
|
520
|
|
25%
|
|
530
|
|
37%
|
|
2,208
|
|
32%
|
|
101
|
|
11%
|
|
2,309
|
|
31%
|
|
|
Energy &
Transportation
|
2,225
|
|
29%
|
|
280
|
|
2%
|
|
1,092
|
|
21%
|
|
679
|
|
48%
|
|
4,276
|
|
27%
|
|
943
|
|
21%
|
|
5,219
|
|
26%
|
|
|
All Other
Segments
|
15
|
|
88%
|
|
-
|
|
-
|
|
4
|
|
(75%)
|
|
18
|
|
38%
|
|
37
|
|
-
|
|
79
|
|
(17%)
|
|
116
|
|
(12%)
|
|
|
Corporate Items and
Eliminations
|
(28)
|
|
|
|
1
|
|
|
|
(3)
|
|
|
|
-
|
|
|
|
(30)
|
|
|
|
(1,141)
|
|
|
|
(1,171)
|
|
|
|
|
Machinery, Energy
& Transportation
|
$5,630
|
|
33%
|
|
$985
|
|
24%
|
|
$2,680
|
|
25%
|
|
$2,855
|
|
44%
|
|
$12,150
|
|
33%
|
|
-
|
|
-
|
|
$12,150
|
|
33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$512
|
|
5%
|
|
$74
|
|
(11%)
|
|
$101
|
|
1%
|
|
$106
|
|
16%
|
|
$793
|
|
4%
|
|
-
|
|
-
|
|
$793
|
|
4%
|
|
|
Corporate Items and
Eliminations
|
(49)
|
|
|
|
(13)
|
|
|
|
(5)
|
|
|
|
(17)
|
|
|
|
(84)
|
|
|
|
-
|
|
|
|
(84)
|
|
|
|
|
Financial
Products Revenues
|
$463
|
|
3%
|
|
$61
|
|
(12%)
|
|
$96
|
|
-
|
|
$89
|
|
13%
|
|
$709
|
|
2%
|
|
-
|
|
-
|
|
$709
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$6,093
|
|
31%
|
|
$1,046
|
|
21%
|
|
$2,776
|
|
24%
|
|
$2,944
|
|
43%
|
|
$12,859
|
|
31%
|
|
-
|
|
-
|
|
$12,859
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$1,913
|
|
|
|
$250
|
|
|
|
$812
|
|
|
|
$1,116
|
|
|
|
$4,091
|
|
|
|
$9
|
|
|
|
$4,100
|
|
|
|
|
Resource
Industries
|
598
|
|
|
|
269
|
|
|
|
416
|
|
|
|
387
|
|
|
|
1,670
|
|
|
|
91
|
|
|
|
1,761
|
|
|
|
|
Energy &
Transportation
|
1,722
|
|
|
|
275
|
|
|
|
900
|
|
|
|
459
|
|
|
|
3,356
|
|
|
|
780
|
|
|
|
4,136
|
|
|
|
|
All Other
Segments
|
8
|
|
|
|
-
|
|
|
|
16
|
|
|
|
13
|
|
|
|
37
|
|
|
|
95
|
|
|
|
132
|
|
|
|
|
Corporate Items and
Eliminations
|
(23)
|
|
|
|
-
|
|
|
|
(2)
|
|
|
|
1
|
|
|
|
(24)
|
|
|
|
(975)
|
|
|
|
(999)
|
|
|
|
|
Machinery, Energy
& Transportation
|
$4,218
|
|
|
|
$794
|
|
|
|
$2,142
|
|
|
|
$1,976
|
|
|
|
$9,130
|
|
|
|
-
|
|
|
|
$9,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$486
|
|
|
|
$83
|
|
|
|
$100
|
|
|
|
$91
|
|
|
|
$760
|
|
|
|
-
|
|
|
|
$760
|
|
|
|
|
Corporate Items and
Eliminations
|
(38)
|
|
|
|
(14)
|
|
|
|
(4)
|
|
|
|
(12)
|
|
|
|
(68)
|
|
|
|
-
|
|
|
|
(68)
|
|
|
|
|
Financial
Products Revenues
|
$448
|
|
|
|
$69
|
|
|
|
$96
|
|
|
|
$79
|
|
|
|
$692
|
|
|
|
-
|
|
|
|
$692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$4,666
|
|
|
|
$863
|
|
|
|
$2,238
|
|
|
|
$2,055
|
|
|
|
$9,822
|
|
|
|
-
|
|
|
|
$9,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-Segment /
Other
|
|
First
Quarter 2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$4,100
|
|
$1,340
|
|
$59
|
|
$169
|
|
$9
|
|
$5,677
|
|
$1,577
|
|
38%
|
|
Resource
Industries
|
1,761
|
|
424
|
|
86
|
|
28
|
|
10
|
|
2,309
|
|
548
|
|
31%
|
|
Energy &
Transportation
|
4,136
|
|
769
|
|
41
|
|
110
|
|
163
|
|
5,219
|
|
1,083
|
|
26%
|
|
All Other
Segments
|
132
|
|
(1)
|
|
-
|
|
1
|
|
(16)
|
|
116
|
|
(16)
|
|
(12%)
|
|
Corporate Items and
Eliminations
|
(999)
|
|
(6)
|
|
-
|
|
-
|
|
(166)
|
|
(1,171)
|
|
(172)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery, Energy
& Transportation
|
$9,130
|
|
$2,526
|
|
$186
|
|
$308
|
|
-
|
|
$12,150
|
|
$3,020
|
|
33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
760
|
|
-
|
|
-
|
|
-
|
|
33
|
|
793
|
|
33
|
|
4%
|
|
Corporate Items and
Eliminations
|
(68)
|
|
-
|
|
-
|
|
-
|
|
(16)
|
|
(84)
|
|
(16)
|
|
|
|
Financial Products
Revenues
|
$692
|
|
-
|
|
-
|
|
-
|
|
$17
|
|
$709
|
|
$17
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$9,822
|
|
$2,526
|
|
$186
|
|
$308
|
|
$17
|
|
$12,859
|
|
$3,037
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit by
Segment
|
First
Quarter 2018
|
|
First
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
Construction
Industries
|
$1,117
|
|
$634
|
|
$483
|
|
76%
|
|
Resource
Industries
|
378
|
|
160
|
|
218
|
|
136%
|
|
Energy &
Transportation
|
874
|
|
545
|
|
329
|
|
60%
|
|
All Other
Segments
|
57
|
|
(14)
|
|
71
|
|
n/a
|
|
Corporate Items and
Eliminations
|
(371)
|
|
(1,060)
|
|
689
|
|
|
|
Machinery, Energy
& Transportation
|
$2,055
|
|
$265
|
|
$1,790
|
|
675%
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$141
|
|
$183
|
|
($42)
|
|
(23%)
|
|
Corporate Items and
Eliminations
|
(2)
|
|
3
|
|
(5)
|
|
|
|
Financial
Products
|
$139
|
|
$186
|
|
($47)
|
|
(25%)
|
|
Consolidating
Adjustments
|
(86)
|
|
(71)
|
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit
|
$2,108
|
|
$380
|
|
$1,728
|
|
455%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
First
Quarter 2018
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$4,100
|
|
$1,340
|
|
$59
|
|
$169
|
|
$9
|
|
$5,677
|
|
$1,577
|
|
38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2018
|
|
First
Quarter
2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
North
America
|
$2,620
|
|
$1,913
|
|
$707
|
|
37%
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
344
|
|
250
|
|
94
|
|
38%
|
|
|
|
|
|
|
|
|
|
|
EAME
|
1,067
|
|
812
|
|
255
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
1,628
|
|
1,116
|
|
512
|
|
46%
|
|
|
|
|
|
|
|
|
|
|
External
Sales
|
$5,659
|
|
$4,091
|
|
$1,568
|
|
38%
|
|
|
|
|
|
|
|
|
|
|
Inter-Segment
|
18
|
|
9
|
|
9
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$5,677
|
|
$4,100
|
|
$1,577
|
|
38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2018
|
|
First
Quarter
2017
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$1,117
|
|
$634
|
|
$483
|
|
76%
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
19.7%
|
|
15.5%
|
|
4.2
pts
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
`
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Industries' total sales were $5.677 billion in the first quarter of 2018,
compared with $4.100 billion in the
first quarter of 2017. The increase was primarily due to higher
sales volume.
- Sales volume increased primarily due to the impact of favorable
changes in dealer inventories and higher end-user demand for
construction equipment. Dealer inventories increased significantly
more in the first quarter of 2018 than in the first quarter of
2017. The company believes the increase in dealer inventories is
reflective of current end-user demand.
Sales increased across all regions with the largest increases in
North America and Asia/Pacific.
- In North America, the sales
increase was mostly due to the impact of favorable changes in
dealer inventories, which increased significantly more in the first
quarter of 2018 than in the first quarter of 2017. In addition,
sales increased due to higher end-user demand for construction
equipment, primarily due to non-residential, infrastructure and oil
and gas construction activities, including pipelines.
- Sales in Asia/Pacific were
higher across the region, with about half due to improved end-user
demand in China stemming from
increased building construction and infrastructure investment. In
addition, the impact of changes in dealer inventories was favorable
as dealer inventories decreased more in the first quarter of 2017
than in the first quarter of 2018. The favorable impact of a
stronger Chinese yuan also contributed to the increase.
- Sales increased in EAME primarily due to the impact of
favorable changes in dealer inventories, the impact from a stronger
euro and higher end-user demand for construction equipment. Dealer
inventories increased more in the first quarter of 2018 than in the
first quarter of 2017.
- Although construction activity remained weak in Latin America, sales were higher as end-user
demand increased from low levels due to stabilizing economic
conditions in several countries in the region.
Construction Industries' profit was $1.117 billion in the first quarter of 2018,
compared with $634 million in the
first quarter of 2017. The increase in profit was a result of
higher sales volume and favorable price realization. The increase
was partially offset by higher SG&A/R&D expenses, material
costs, primarily for steel, and freight costs. The increase in
SG&A/R&D expenses was primarily due to higher short-term
incentive compensation expense and targeted investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESOURCE
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
First
Quarter 2018
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$1,761
|
|
$424
|
|
$86
|
|
$28
|
|
$10
|
|
$2,309
|
|
$548
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2018
|
|
First
Quarter
2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
North
America
|
$798
|
|
$598
|
|
$200
|
|
33%
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
360
|
|
269
|
|
91
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
EAME
|
520
|
|
416
|
|
104
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
530
|
|
387
|
|
143
|
|
37%
|
|
|
|
|
|
|
|
|
|
|
External
Sales
|
$2,208
|
|
$1,670
|
|
$538
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
Inter-Segment
|
101
|
|
91
|
|
10
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$2,309
|
|
$1,761
|
|
$548
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2018
|
|
First
Quarter 2017
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$378
|
|
$160
|
|
$218
|
|
136%
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
16.4%
|
|
9.1%
|
|
7.3
pts
|
|
80%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
`
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource Industries' total sales were $2.309 billion in the first quarter of 2018, an
increase of $548 million from the
first quarter of 2017. The increase was primarily due to higher
end-user demand for equipment in all regions. Compared to the first
quarter of 2017, commodity prices remained strong and drove
improved market conditions and financial health of mining
companies. As a result, mining customers invested in delayed
replacement cycles and initiated expansions, resulting in higher
equipment sales in the first quarter of 2018. Macroeconomic growth
globally also contributed to stronger sales for quarry and
aggregate and heavy construction equipment. In addition, favorable
price realization and the favorable impact of changes in dealer
inventories contributed to increased sales. Dealer inventories
increased more in the first quarter of 2018 than in the first
quarter of 2017. Aftermarket parts sales have also experienced
growth related to increased production and higher machine
utilization in the industries the company serves.
Resource Industries' profit was $378
million in the first quarter of 2018, compared with
$160 million in the first quarter of
2017. The improvement was primarily due to higher sales volume.
Favorable price realization and variable manufacturing costs,
including cost absorption, were partially offset by higher
short-term incentive compensation expense and a slightly
unfavorable impact from currency. Cost absorption was favorable as
inventory increased in the first quarter of 2018 to support higher
production and was about flat in the first quarter of 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY &
TRANSPORTATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
First
Quarter
2018
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$4,136
|
|
$769
|
|
$41
|
|
$110
|
|
$163
|
|
$5,219
|
|
$1,083
|
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Application
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
2018
|
|
First
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Oil and
Gas
|
$1,215
|
|
$809
|
|
$406
|
|
50%
|
|
|
|
|
|
|
|
|
|
|
|
Power
Generation
|
969
|
|
716
|
|
253
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
906
|
|
777
|
|
129
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
|
1,186
|
|
1,054
|
|
132
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
External
Sales
|
$4,276
|
|
$3,356
|
|
$920
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
Inter-Segment
|
943
|
|
780
|
|
163
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$5,219
|
|
$4,136
|
|
$1,083
|
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2018
|
|
First
Quarter
2017
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$874
|
|
$545
|
|
$329
|
|
60%
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
16.7%
|
|
13.2%
|
|
3.5
pts
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's total sales were $5.219 billion in the first quarter of 2018,
compared with $4.136 billion in the
first quarter of 2017. The increase was primarily due to higher
external sales volume across all applications.
- Oil and Gas – Sales increased primarily due to higher
demand in North America for gas
compression, production and well servicing applications. Higher
energy prices and growth in U.S. onshore oil and gas drove
increased sales for reciprocating engines and related aftermarket
parts. Sales in North America were
also positively impacted by the timing of turbine project
deliveries.
- Power Generation – Sales improved across all regions,
with the largest increase in EAME primarily due to the timing of
several large projects and favorable impacts from currency. In
addition, sales in North America
increased due to higher sales for turbines and aftermarket parts
for reciprocating engines.
- Industrial – Sales were higher across all regions except
Latin America, primarily due to
improving global economic conditions supporting higher engine sales
into industrial end-user applications. Sales in EAME were also
positively impacted by favorable currency.
- Transportation – Sales were higher in Asia/Pacific and North America for rail services, driven
primarily by growth in Australia
and increased rail traffic in North
America. Marine sales were higher primarily in Asia/Pacific due to timing of deliveries.
Energy & Transportation's profit was $874 million in the first quarter of 2018,
compared with $545 million in the
first quarter of 2017. The increase was mostly due to higher sales
volume and favorable price realization, partially offset by higher
short-term incentive compensation expense and targeted
investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL PRODUCTS
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
2018
|
|
First
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
North
America
|
$512
|
|
$486
|
|
$26
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
74
|
|
83
|
|
(9)
|
|
(11%)
|
|
|
|
|
|
|
|
|
|
|
EAME
|
101
|
|
100
|
|
1
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
106
|
|
91
|
|
15
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
Total
|
$793
|
|
$760
|
|
$33
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
2018
|
|
First
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$141
|
|
$183
|
|
($42)
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products' segment revenues were
$793 million in the first quarter of
2018, an increase of $33 million, or
4 percent, from the first quarter of 2017. The increase was
primarily due to higher average earning assets in
Asia/Pacific and higher average
financing rates in North America,
partially offset by an unfavorable impact from lower intercompany
lending activity in North
America.
Financial Products' segment profit was $141 million in the first quarter of 2018,
compared with $183 million in the
first quarter of 2017. The decrease was primarily due to an
increase in the provision for credit losses at Cat Financial,
partially offset by an increase in net yield on average earning
assets.
At the end of the first quarter of 2018, past dues at Cat
Financial were 3.17 percent, compared with 2.64 percent at the end
of the first quarter of 2017, primarily due to increases in the
Caterpillar Power Finance and Latin
America portfolios. Write-offs, net of recoveries, in
the first quarter of 2018 were $30
million, compared with $15
million in the first quarter of 2017. The largest
contributors to the increase were the Latin America and Caterpillar Power Finance
portfolios.
As of March 31, 2018, Cat
Financial's allowance for credit losses totaled $403 million, or 1.45 percent of finance
receivables, compared with $346
million, or 1.28 percent of finance receivables at
March 31, 2017. The allowance for
credit losses at year-end 2017 was $365
million, or 1.33 percent of finance receivables. The
increase in the allowance for credit losses was primarily driven by
the Caterpillar Power Finance and mining portfolios.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $373 million in the first quarter of 2018, a
decrease of $684 million from the
first quarter of 2017. Corporate items and eliminations include:
restructuring costs; corporate-level expenses; timing differences,
as some expenses are reported in segment profit on a cash basis;
currency differences for ME&T, as segment profit is reported
using annual fixed exchange rates; cost of sales methodology
differences, as segments use a current cost methodology; and
inter-segment eliminations.
The decrease in expense was primarily due to lower restructuring
costs, which were $69 million in the
first quarter of 2018. In the first quarter of 2017, restructuring
costs of $723 million were primarily
related to the announced closure of the facility in Gosselies,
Belgium.
QUESTIONS AND ANSWERS
Q1:
|
Can you discuss
changes in dealer inventories during the first quarter of
2018?
|
|
|
A:
|
Dealers generally
increase inventories during the first quarter in preparation for
the spring selling season. Dealer machine and engine inventories
increased about $1.2 billion in the first quarter of 2018, compared
to an increase of about $200 million in the first quarter of 2017.
The increase in the first quarter of 2018 was primarily in
Construction Industries. We believe the increase in dealer
inventories is reflective of current end-user demand.
|
|
|
Q2:
|
Can you discuss
changes to your order backlog by segment?
|
|
|
A:
|
At the end of the
first quarter of 2018, the order backlog was about $17.5 billion,
an increase of about $1.7 billion from the end of 2017. The
increase was in Energy & Transportation and Construction
Industries, while Resource Industries was about flat.
|
|
|
Q3:
|
Can you comment on
expense related to your 2018 short-term incentive compensation
plans and the impact on the 2018 outlook?
|
|
|
A:
|
Short-term incentive
compensation expense is directly related to financial and
operational performance, measured against targets set annually.
First-quarter 2018 expense was about $360 million, compared to
first-quarter 2017 expense of about $235 million.
|
|
For the full year of
2018, our current outlook includes short-term incentive
compensation expense of about $1.4 billion, nearly the same as
2017.
|
|
|
Q4:
|
In January, you
commented that significant increases in demand could impact your
growth potential in 2018 due to supplier constraints. Can you
provide an update?
|
|
|
A:
|
We continue to work
with our global suppliers to respond to significant increases in
demand. Although constraints remain for some parts and components,
we are seeing improvements in material flows.
|
|
|
Q5:
|
Can you give us an
update on the quality of Cat Financial's asset portfolio? How are
write-offs, past dues and allowance for credit losses
performing?
|
|
|
A:
|
Cat Financial's core
asset portfolio continues to perform well overall. Write-offs
during the first quarter of 2018 were $30 million, or 0.45 percent
of average retail portfolio, which is about the same level as our
10-year average of 0.44 percent for the first quarter. This total
compares with write-offs of $15 million during the first quarter of
2017, which was an unusually low quarterly write-off period based
on Cat Financial's historical performance. The increase from a year
ago was driven by higher write-offs in the Latin America and Cat
Power Finance portfolios. Past dues increased during the first
quarter to 3.17 percent, which is slightly above the first-quarter
historical average of 3.09 percent, and was impacted by higher
delinquencies in Cat Power Finance and Latin America. The provision
for credit losses was higher in the first quarter of 2018 by $51
million, primarily due to higher provision expense in Cat Power
Finance and on a small number of transactions in our mining
portfolio. In addition, higher write-offs compared with a low
quarter for write-offs in the first quarter of 2017 were also a
contributor.
|
|
|
Q6:
|
Can you comment on
your balance sheet and cash priorities?
|
|
|
A:
|
Our cash and
liquidity positions remain strong with an enterprise cash balance
of $7.9 billion as of March 31, 2018. ME&T operating cash flow
for the first quarter of 2018 was $948 million, compared with $1.5
billion in 2017. The decrease was primarily due to higher
short-term incentive compensation payments in the first quarter of
2018, compared with the first quarter of 2017. We repurchased $500
million of common stock in the first quarter of 2018.
|
|
|
|
While our short-term
priorities for the use of cash may vary from time to time as
business needs and conditions dictate, our long-term cash
deployment strategy is focused on the following priorities: Our top
priority is to maintain a strong financial position in support of a
Mid-A rating. Next, we intend to fund operational requirements and
commitments. Then, we intend to fund priorities that profitably
grow the company and return capital to shareholders through
dividend growth and stock repurchases.
|
|
|
Q7:
|
Your 2017
operating costs and other income/expense changed from what you
reported last year. Can you explain the change?
|
|
|
A:
|
Effective January 1,
2018, we adopted a new U.S. GAAP accounting standard related to
pension and OPEB costs. Components of pension and OPEB costs, other
than service costs, have been reclassified from operating costs to
other income/expense. The change was made to prior periods and the
table below provides the recast 2017 amounts by quarter. This
change had a small impact on 2017 profit for the segments within
ME&T, which has also been recast to be consistent with the
revised classification. There was no impact on Financial
Products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
Recast
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full Year
2017
|
|
Cost of goods
sold
|
$6,801
|
|
$7,816
|
|
$7,678
|
|
$8,966
|
|
$31,261
|
|
Selling, general and
administrative expenses
|
940
|
|
1,169
|
|
1,084
|
|
1,218
|
|
4,411
|
|
Research and
development expenses
|
425
|
|
458
|
|
461
|
|
498
|
|
1,842
|
|
Other operating
(income) expenses
|
699
|
|
111
|
|
51
|
|
195
|
|
1,056
|
|
ME&T
operating costs
|
$8,865
|
|
$9,554
|
|
$9,274
|
|
$10,877
|
|
$38,570
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products operating costs
|
591
|
|
607
|
|
645
|
|
648
|
|
2,491
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating adjustments
|
(14)
|
|
(14)
|
|
(15)
|
|
(16)
|
|
(59)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
operating costs
|
$9,442
|
|
$10,147
|
|
$9,904
|
|
$11,509
|
|
$41,002
|
|
Consolidated
operating profit
|
380
|
|
1,184
|
|
1,509
|
|
1,387
|
|
4,460
|
|
|
|
|
|
|
|
|
|
|
|
|
Consoliated other
income (expense)
|
$32
|
|
$96
|
|
$132
|
|
($107)
|
|
$153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification to
other income (expense) *
|
$37
|
|
$67
|
|
$68
|
|
($226)
|
|
($54)
|
|
|
|
|
|
|
|
|
|
|
|
|
* First-quarter 2017
includes $29 million of curtailment losses and termination benefits
included in restructuring costs and fourth-quarter 2017 includes
$301 million of mark-to-market losses.
|
|
GLOSSARY OF TERMS
1.
|
Adjusted Profit
Per Share – Profit per share excluding restructuring costs for
2018 and 2017.
|
2.
|
All Other
Segments – Primarily includes activities such as: business
strategy, product management and development, manufacturing of
filters and fluids, undercarriage, ground engaging tools, fluid
transfer products, precision seals, rubber sealing and connecting
components primarily for Cat® products; parts distribution;
integrated logistics solutions, distribution services responsible
for dealer development and administration including a wholly owned
dealer in Japan, dealer portfolio management and ensuring the most
efficient and effective distribution of machines, engines and
parts; digital investments for new customer and dealer solutions
that integrate data analytics with state-of-the-art digital
technologies while transforming the buying experience.
|
3.
|
Consolidating
Adjustments – Elimination of transactions between Machinery,
Energy & Transportation and Financial Products.
|
4.
|
Construction
Industries – A segment primarily responsible for supporting
customers using machinery in infrastructure, forestry and building
construction applications. Responsibilities include business
strategy, product design, product management and development,
manufacturing, marketing and sales and product support. The product
portfolio includes asphalt pavers, backhoe loaders, compactors,
cold planers, compact track and multi-terrain loaders, mini, small,
medium and large track excavators, forestry excavators, feller
bunchers, harvesters, knuckleboom loaders, motor graders,
pipelayers, road reclaimers, site prep tractors, skidders, skid
steer loaders, telehandlers, small and medium track-type tractors,
track-type loaders, wheel excavators, compact, small and medium
wheel loaders and related parts and work tools.
|
5.
|
Currency –
With respect to sales and revenues, currency represents the
translation impact on sales resulting from changes in foreign
currency exchange rates versus the U.S. dollar. With respect to
operating profit, currency represents the net translation impact on
sales and operating costs resulting from changes in foreign
currency exchange rates versus the U.S. dollar. Currency only
includes the impact on sales and operating profit for the
Machinery, Energy & Transportation lines of business excluding
restructuring costs; currency impacts on Financial Products'
revenues and operating profit are included in the Financial
Products' portions of the respective analyses. With respect to
other income/expense, currency represents the effects of forward
and option contracts entered into by the company to reduce the risk
of fluctuations in exchange rates (hedging) and the net effect of
changes in foreign currency exchange rates on our foreign currency
assets and liabilities for consolidated results
(translation).
|
6.
|
EAME – A
geographic region including Europe, Africa, the Middle East and the
Commonwealth of Independent States (CIS).
|
7.
|
Earning Assets
– Assets consisting primarily of total finance receivables net of
unearned income, plus equipment on operating leases, less
accumulated depreciation at Cat Financial.
|
8.
|
Energy &
Transportation – A segment primarily responsible for supporting
customers using reciprocating engines, turbines, diesel-electric
locomotives and related parts across industries serving Oil and
Gas, Power Generation, Industrial and Transportation applications,
including marine and rail-related businesses. Responsibilities
include business strategy, product design, product management and
development, manufacturing, marketing and sales and product support
of turbine machinery and integrated systems and solutions and
turbine-related services, reciprocating engine-powered generator
sets, integrated systems used in the electric power generation
industry, reciprocating engines and integrated systems and
solutions for the marine and oil and gas industries; reciprocating
engines supplied to the industrial industry as well as Cat
machinery; the remanufacturing of Cat engines and components and
remanufacturing services for other companies; the business
strategy, product design, product management and development,
manufacturing, remanufacturing, leasing and service of
diesel-electric locomotives and components and other rail-related
products and services and product support of on-highway vocational
trucks for North America.
|
9.
|
Financial Products
Segment – Provides financing alternatives to customers and
dealers around the world for Caterpillar products, as well as
financing for vehicles, power generation facilities and marine
vessels that, in most cases, incorporate Caterpillar products.
Financing plans include operating and finance leases, installment
sale contracts, working capital loans and wholesale financing
plans. The segment also provides insurance and risk management
products and services that help customers and dealers manage their
business risk. Insurance and risk management products offered
include physical damage insurance, inventory protection plans,
extended service coverage for machines and engines, and dealer
property and casualty insurance. The various forms of financing,
insurance and risk management products offered to customers and
dealers help support the purchase and lease of our equipment.
Financial Products segment profit is determined on a pretax basis
and includes other income/expense items.
|
10.
|
Latin America
– A geographic region including Central and South American
countries and Mexico.
|
11.
|
Machinery, Energy
& Transportation (ME&T) – Represents the aggregate
total of Construction Industries, Resource Industries, Energy &
Transportation, All Other Segments and related corporate items and
eliminations.
|
12.
|
Machinery, Energy
& Transportation Other Operating (Income) Expenses
– Comprised primarily of gains/losses on disposal of
long-lived assets, gains/losses on divestitures and legal
settlements and accruals. Restructuring costs classified as other
operating expenses on the Results of Operations are presented
separately on the Operating Profit Comparison.
|
13.
|
Manufacturing
Costs – Manufacturing costs exclude the impacts of currency and
restructuring costs (see definition below) and represent the
volume-adjusted change for variable costs and the absolute dollar
change for period manufacturing costs. Variable manufacturing costs
are defined as having a direct relationship with the volume of
production. This includes material costs, direct labor and other
costs that vary directly with production volume such as freight,
power to operate machines and supplies that are consumed in the
manufacturing process. Period manufacturing costs support
production but are defined as generally not having a direct
relationship to short-term changes in volume. Examples include
machinery and equipment repair, depreciation on manufacturing
assets, facility support, procurement, factory scheduling,
manufacturing planning and operations management.
|
14.
|
Pension and Other
Postemployment Benefit (OPEB) – The company's defined-benefit
pension and postretirement benefit plans.
|
15.
|
Price
Realization – The impact of net price changes excluding
currency and new product introductions. Price realization includes
geographic mix of sales, which is the impact of changes in the
relative weighting of sales prices between geographic
regions.
|
16.
|
Resource
Industries – A segment primarily responsible for supporting
customers using machinery in mining, quarry and aggregates, waste
and material handling applications. Responsibilities include
business strategy, product design, product management and
development, manufacturing, marketing and sales and product
support. The product portfolio includes large track-type tractors,
large mining trucks, hard rock vehicles, longwall miners, electric
rope shovels, draglines, hydraulic shovels, rotary drills, large
wheel loaders, off-highway trucks, articulated trucks, wheel
tractor scrapers, wheel dozers, landfill compactors, soil
compactors, hard rock continuous mining systems, select work tools,
machinery components, electronics and control systems and related
parts. In addition to equipment, Resource Industries also develops
and sells technology products and services to provide customers
fleet management, equipment management analytics and autonomous
machine capabilities. Resource Industries also manages areas that
provide services to other parts of the company, including
integrated manufacturing and research and development.
|
17.
|
Restructuring
Costs – Primarily costs for employee separation, long-lived
asset impairments and contract terminations. These costs are
included in Other operating (income) expenses except for
defined-benefit plan curtailment losses and special termination
benefits, which are included in Other income (expense).
Restructuring costs also include other exit-related costs primarily
for accelerated depreciation, inventory write-downs, equipment
relocation and project management costs and LIFO inventory
decrement benefits from inventory liquidations at closed
facilities, primarily included in Cost of goods sold.
|
18.
|
Sales Volume –
With respect to sales and revenues, sales volume represents the
impact of changes in the quantities sold for Machinery, Energy
& Transportation as well as the incremental sales impact of new
product introductions, including emissions-related product updates.
With respect to operating profit, sales volume represents the
impact of changes in the quantities sold for Machinery, Energy
& Transportation combined with product mix as well as the net
operating profit impact of new product introductions, including
emissions-related product updates. Product mix represents the net
operating profit impact of changes in the relative weighting of
Machinery, Energy & Transportation sales with respect to total
sales. The impact of sales volume on segment profit includes
inter-segment sales.
|
|
|
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP
financial measures used in this report. These non-GAAP financial
measures have no standardized meaning prescribed by U.S. GAAP and
therefore are unlikely to be comparable to the calculation of
similar measures for other companies. Management does not
intend these items to be considered in isolation or as a substitute
for the related GAAP measures.
Adjusted Profit Per Share
The company incurred restructuring costs in 2017 and in the
first quarter of 2018 and expects to incur additional restructuring
costs during the remainder of 2018. The company believes it is
important to separately quantify the profit per share impact of
restructuring costs in order for Caterpillar's results and outlook
to be meaningful to readers as these costs are incurred in the
current year to generate longer-term benefits.
Reconciliations of adjusted profit per share to the most
directly comparable GAAP measure, diluted profit per share, are as
follows:
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First
Quarter
|
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2018
Outlook
|
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|
|
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2017
|
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2018
|
|
Previous
1
|
|
Current
2
|
|
|
Profit per
share
|
$0.32
|
|
$2.74
|
|
$7.75-$8.75
|
|
$9.75-$10.75
|
|
|
Per share
restructuring costs3
|
$0.96
|
|
$0.08
|
|
$0.50
|
|
$0.50
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|
|
Adjusted profit per
share
|
$1.28
|
|
$2.82
|
|
$8.25-$9.25
|
|
$10.25-$11.25
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|
|
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|
|
|
|
|
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1 2018
profit per share outlook range as of January 25, 2018.
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2 2018
profit per share outlook range as of April 24, 2018.
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3 At
estimated annual tax rate based on full-year outlook for per share
restructuring costs at statutory tax rates. 2018 at estimated
annual tax rate of 24 percent.
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First-quarter
2017 at estimated annual tax rate of 22 percent plus a $15 million
increase to prior year taxes related to non-U.S. restructuring
costs.
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First-quarter 2017 also includes a
favorable interim adjustment of $0.06 per share resulting from the
difference in the estimated annual tax rate for consolidated
reporting of 32 percent and the estimated annual tax rate for
profit per share excluding restructuring costs and discrete items
of 28 percent.
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Machinery, Energy & Transportation
Caterpillar defines Machinery, Energy & Transportation as it
is presented in the supplemental data as Caterpillar Inc. and its
subsidiaries with Financial Products accounted for on the equity
basis. Machinery, Energy & Transportation information relates
to the design, manufacture and marketing of Caterpillar products.
Financial Products' information relates to the financing to
customers and dealers for the purchase and lease of Caterpillar and
other equipment. The nature of these businesses is different,
especially with regard to the financial position and cash flow
items. Caterpillar management utilizes this presentation internally
to highlight these differences. The company also believes this
presentation will assist readers in understanding Caterpillar's
business. Pages 18- 24 reconcile Machinery, Energy &
Transportation with Financial Products on the equity basis to
Caterpillar Inc. consolidated financial information.
Caterpillar's latest financial results and outlook are also
available via:
Telephone:
|
800-228-7717 (Inside
the United States and Canada)
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|
858-764-9492 (Outside
the United States and Canada)
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|
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Internet:
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http://www.caterpillar.com/en/investors.html
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http://www.caterpillar.com/en/investors/quarterly-results.html
(live broadcast/replays of quarterly conference call)
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in
millions except per share data)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2018
|
|
2017
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
12,150
|
|
|
|
$
|
9,130
|
|
|
|
Revenues of Financial
Products
|
|
709
|
|
|
|
|
692
|
|
|
|
Total sales and
revenues
|
|
12,859
|
|
|
|
|
9,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,566
|
|
|
|
|
6,801
|
|
|
|
Selling, general and
administrative expenses
|
|
1,276
|
|
|
|
|
1,061
|
|
|
|
Research and
development expenses
|
|
443
|
|
|
|
|
425
|
|
|
|
Interest expense of
Financial Products
|
|
166
|
|
|
|
|
159
|
|
|
|
Other operating
(income) expenses
|
|
300
|
|
|
|
|
996
|
|
|
|
Total operating
costs
|
|
10,751
|
|
|
|
|
9,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,108
|
|
|
|
|
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
101
|
|
|
|
|
123
|
|
|
|
Other income
(expense)
|
|
127
|
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,134
|
|
|
|
|
289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
472
|
|
|
|
|
90
|
|
|
|
Profit of
consolidated companies
|
|
1,662
|
|
|
|
|
199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
5
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,667
|
|
|
|
|
194
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit (loss)
attributable to noncontrolling interests
|
|
2
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
1
|
$
|
1,665
|
|
|
|
$
|
192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share
|
$
|
2.78
|
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share – diluted 2
|
$
|
2.74
|
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
598.0
|
|
|
|
|
587.5
|
|
|
|
-
Diluted2
|
|
608.0
|
|
|
|
|
593.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit attributable
to common shareholders.
|
2
|
Diluted by assumed
exercise of stock-based compensation awards using the treasury
stock method.
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Financial Position
(Unaudited)
(Millions of
dollars)
|
|
|
March
31,
|
|
December
31,
|
|
2018
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
7,888
|
|
|
|
$
|
8,261
|
|
|
|
|
Receivables - trade
and other
|
|
7,894
|
|
|
|
|
7,436
|
|
|
|
|
Receivables -
finance
|
|
8,772
|
|
|
|
|
8,757
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
1,856
|
|
|
|
|
1,772
|
|
|
|
|
Inventories
|
|
10,947
|
|
|
|
|
10,018
|
|
|
|
Total current
assets
|
|
37,357
|
|
|
|
|
36,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
13,912
|
|
|
|
|
14,155
|
|
|
|
Long-term receivables
- trade and other
|
|
1,004
|
|
|
|
|
990
|
|
|
|
Long-term receivables
- finance
|
|
13,359
|
|
|
|
|
13,542
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
1,687
|
|
|
|
|
1,693
|
|
|
|
Intangible
assets
|
|
2,163
|
|
|
|
|
2,111
|
|
|
|
Goodwill
|
|
6,376
|
|
|
|
|
6,200
|
|
|
|
Other
assets
|
|
2,156
|
|
|
|
|
2,027
|
|
|
Total
assets
|
$
|
78,014
|
|
|
|
$
|
76,962
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
7
|
|
|
|
$
|
1
|
|
|
|
|
|
-- Financial
Products
|
|
5,726
|
|
|
|
|
4,836
|
|
|
|
|
Accounts
payable
|
|
6,938
|
|
|
|
|
6,487
|
|
|
|
|
Accrued
expenses
|
|
3,551
|
|
|
|
|
3,220
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
1,474
|
|
|
|
|
2,559
|
|
|
|
|
Customer
advances
|
|
1,399
|
|
|
|
|
1,426
|
|
|
|
|
Dividends
payable
|
|
—
|
|
|
|
|
466
|
|
|
|
|
Other current
liabilities
|
|
1,890
|
|
|
|
|
1,742
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
8
|
|
|
|
|
6
|
|
|
|
|
|
-- Financial
Products
|
|
6,409
|
|
|
|
|
6,188
|
|
|
|
Total current
liabilities
|
|
27,402
|
|
|
|
|
26,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
7,980
|
|
|
|
|
7,929
|
|
|
|
|
|
-- Financial
Products
|
|
15,185
|
|
|
|
|
15,918
|
|
|
|
Liability for
postemployment benefits
|
|
8,233
|
|
|
|
|
8,365
|
|
|
|
Other
liabilities
|
|
3,942
|
|
|
|
|
4,053
|
|
|
Total
liabilities
|
|
62,742
|
|
|
|
|
63,196
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,640
|
|
|
|
|
5,593
|
|
|
|
Treasury
stock
|
|
(17,347)
|
|
|
|
|
(17,005)
|
|
|
|
Profit employed in
the business
|
|
27,929
|
|
|
|
|
26,301
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,016)
|
|
|
|
|
(1,192)
|
|
|
|
Noncontrolling
interests
|
|
66
|
|
|
|
|
69
|
|
|
Total
shareholders' equity
|
|
15,272
|
|
|
|
|
13,766
|
|
|
Total liabilities
and shareholders' equity
|
$
|
78,014
|
|
|
|
$
|
76,962
|
|
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of
dollars)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
1,667
|
|
|
|
$
|
194
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
681
|
|
|
|
|
710
|
|
|
|
|
Other
|
|
148
|
|
|
|
|
302
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
(326)
|
|
|
|
|
(353)
|
|
|
|
|
Inventories
|
|
(803)
|
|
|
|
|
(444)
|
|
|
|
|
Accounts
payable
|
|
486
|
|
|
|
|
732
|
|
|
|
|
Accrued
expenses
|
|
66
|
|
|
|
|
132
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(1,110)
|
|
|
|
|
360
|
|
|
|
|
Customer
advances
|
|
(46)
|
|
|
|
|
234
|
|
|
|
|
Other assets –
net
|
|
165
|
|
|
|
|
(261)
|
|
|
|
|
Other liabilities –
net
|
|
7
|
|
|
|
|
(64)
|
|
|
Net cash provided by
(used for) operating activities
|
|
935
|
|
|
|
|
1,542
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(412)
|
|
|
|
|
(204)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(345)
|
|
|
|
|
(305)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
258
|
|
|
|
|
234
|
|
|
|
Additions to finance
receivables
|
|
(2,621)
|
|
|
|
|
(2,122)
|
|
|
|
Collections of
finance receivables
|
|
2,671
|
|
|
|
|
2,272
|
|
|
|
Proceeds from sale of
finance receivables
|
|
69
|
|
|
|
|
17
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(340)
|
|
|
|
|
(18)
|
|
|
|
Proceeds from sale of
business and investments (net of cash sold)
|
|
12
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
securities
|
|
89
|
|
|
|
|
89
|
|
|
|
Investments in
securities
|
|
(197)
|
|
|
|
|
(65)
|
|
|
|
Other –
net
|
|
16
|
|
|
|
|
9
|
|
|
Net cash provided by
(used for) investing activities
|
|
(800)
|
|
|
|
|
(93)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(467)
|
|
|
|
|
(452)
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
149
|
|
|
|
|
(19)
|
|
|
|
Treasury shares
purchased
|
|
(500)
|
|
|
|
|
—
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
1,541
|
|
|
|
|
2,715
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(2,409)
|
|
|
|
|
(1,978)
|
|
|
|
Short-term borrowings
– net (original maturities three months or less)
|
|
1,151
|
|
|
|
|
618
|
|
|
|
Other –
net
|
|
(3)
|
|
|
|
|
(6)
|
|
|
Net cash provided by
(used for) financing activities
|
|
(538)
|
|
|
|
|
878
|
|
|
Effect of exchange
rate changes on cash
|
|
10
|
|
|
|
|
9
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
(393)
|
|
|
|
|
2,336
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
8,320
|
|
|
|
|
7,199
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,927
|
|
|
|
$
|
9,535
|
|
|
|
All short-term
investments, which consist primarily of highly liquid investments
with original maturities of three months or less, are considered to
be cash equivalents.
|
Caterpillar
Inc.
Supplemental Data for Results of
Operations
For the Three
Months Ended March 31, 2018
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
|
Machinery,
|
|
|
|
|
|
|
Consolidated
|
|
Energy
&
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
12,150
|
|
|
|
$
|
12,150
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
Revenues of Financial
Products
|
|
709
|
|
|
|
|
—
|
|
|
|
|
811
|
|
|
|
|
(102)
|
|
2
|
|
|
Total sales and
revenues
|
|
12,859
|
|
|
|
|
12,150
|
|
|
|
|
811
|
|
|
|
|
(102)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,566
|
|
|
|
|
8,566
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Selling, general and
administrative expenses
|
|
1,276
|
|
|
|
|
1,087
|
|
|
|
|
189
|
|
|
|
|
—
|
|
|
|
|
Research and
development expenses
|
|
443
|
|
|
|
|
443
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Interest expense of
Financial Products
|
|
166
|
|
|
|
|
—
|
|
|
|
|
173
|
|
|
|
|
(7)
|
|
4
|
|
|
Other operating
(income) expenses
|
|
300
|
|
|
|
|
(1)
|
|
|
|
|
310
|
|
|
|
|
(9)
|
|
3
|
|
|
Total operating
costs
|
|
10,751
|
|
|
|
|
10,095
|
|
|
|
|
672
|
|
|
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,108
|
|
|
|
|
2,055
|
|
|
|
|
139
|
|
|
|
|
(86)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
101
|
|
|
|
|
112
|
|
|
|
|
—
|
|
|
|
|
(11)
|
|
4
|
|
|
Other income
(expense)
|
|
127
|
|
|
|
|
54
|
|
|
|
|
(2)
|
|
|
|
|
75
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,134
|
|
|
|
|
1,997
|
|
|
|
|
137
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
472
|
|
|
|
|
441
|
|
|
|
|
31
|
|
|
|
|
—
|
|
|
|
|
Profit of
consolidated companies
|
|
1,662
|
|
|
|
|
1,556
|
|
|
|
|
106
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
5
|
|
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
102
|
|
|
|
|
—
|
|
|
|
|
(102)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,667
|
|
|
|
|
1,663
|
|
|
|
|
106
|
|
|
|
|
(102)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
2
|
|
|
|
|
(2)
|
|
|
|
|
4
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,665
|
|
|
|
$
|
1,665
|
|
|
|
$
|
102
|
|
|
|
$
|
(102)
|
|
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of
Operations
For the Three
Months Ended March 31, 2017
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
9,130
|
|
|
|
$
|
9,130
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
692
|
|
|
|
|
—
|
|
|
|
|
777
|
|
|
|
|
(85)
|
|
2
|
|
Total sales and
revenues
|
|
9,822
|
|
|
|
|
9,130
|
|
|
|
|
777
|
|
|
|
|
(85)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
6,801
|
|
|
|
|
6,801
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Selling, general and
administrative expenses
|
|
1,061
|
|
|
|
|
940
|
|
|
|
|
126
|
|
|
|
|
(5)
|
|
3
|
|
Research and
development expenses
|
|
425
|
|
|
|
|
425
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
159
|
|
|
|
|
—
|
|
|
|
|
163
|
|
|
|
|
(4)
|
|
4
|
|
Other operating
(income) expenses
|
|
996
|
|
|
|
|
699
|
|
|
|
|
302
|
|
|
|
|
(5)
|
|
3
|
|
Total operating
costs
|
|
9,442
|
|
|
|
|
8,865
|
|
|
|
|
591
|
|
|
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
380
|
|
|
|
|
265
|
|
|
|
|
186
|
|
|
|
|
(71)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
123
|
|
|
|
|
144
|
|
|
|
|
—
|
|
|
|
|
(21)
|
|
4
|
|
Other income
(expense)
|
|
32
|
|
|
|
|
(16)
|
|
|
|
|
(2)
|
|
|
|
|
50
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
289
|
|
|
|
|
105
|
|
|
|
|
184
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
90
|
|
|
|
|
34
|
|
|
|
|
56
|
|
|
|
|
—
|
|
|
|
Profit of
consolidated companies
|
|
199
|
|
|
|
|
71
|
|
|
|
|
128
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
(5)
|
|
|
|
|
(5)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
126
|
|
|
|
|
—
|
|
|
|
|
(126)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
194
|
|
|
|
|
192
|
|
|
|
|
128
|
|
|
|
|
(126)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
2
|
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
192
|
|
|
|
$
|
192
|
|
|
|
$
|
126
|
|
|
|
$
|
(126)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the Three
Months Ended March 31, 2018
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
1,667
|
|
|
|
$
|
1,663
|
|
|
|
$
|
106
|
|
|
|
$
|
(102)
|
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
681
|
|
|
|
|
468
|
|
|
|
|
213
|
|
|
|
|
—
|
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(102)
|
|
|
|
|
—
|
|
|
|
|
102
|
|
3
|
|
|
Other
|
|
148
|
|
|
|
|
62
|
|
|
|
|
(6)
|
|
|
|
|
92
|
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
(326)
|
|
|
|
|
90
|
|
|
|
|
—
|
|
|
|
|
(416)
|
|
4,5
|
|
|
Inventories
|
|
(803)
|
|
|
|
|
(803)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Accounts
payable
|
|
486
|
|
|
|
|
505
|
|
|
|
|
(19)
|
|
|
|
|
—
|
|
|
|
|
Accrued
expenses
|
|
66
|
|
|
|
|
43
|
|
|
|
|
23
|
|
|
|
|
—
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(1,110)
|
|
|
|
|
(1,083)
|
|
|
|
|
(27)
|
|
|
|
|
—
|
|
|
|
|
Customer
advances
|
|
(46)
|
|
|
|
|
(46)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Other assets -
net
|
|
165
|
|
|
|
|
173
|
|
|
|
|
28
|
|
|
|
|
(36)
|
|
4
|
|
|
Other liabilities -
net
|
|
7
|
|
|
|
|
(22)
|
|
|
|
|
(7)
|
|
|
|
|
36
|
|
4
|
Net cash provided by
(used for) operating activities
|
|
935
|
|
|
|
|
948
|
|
|
|
|
311
|
|
|
|
|
(324)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(412)
|
|
|
|
|
(321)
|
|
|
|
|
(92)
|
|
|
|
|
1
|
|
4
|
|
Expenditures for
equipment leased to others
|
|
(345)
|
|
|
|
|
(2)
|
|
|
|
|
(346)
|
|
|
|
|
3
|
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
258
|
|
|
|
|
54
|
|
|
|
|
207
|
|
|
|
|
(3)
|
|
4
|
|
Additions to finance
receivables
|
|
(2,621)
|
|
|
|
|
—
|
|
|
|
|
(2,955)
|
|
|
|
|
334
|
|
5
|
|
Collections of
finance receivables
|
|
2,671
|
|
|
|
|
—
|
|
|
|
|
3,171
|
|
|
|
|
(500)
|
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(489)
|
|
|
|
|
489
|
|
5
|
|
Proceeds from sale of
finance receivables
|
|
69
|
|
|
|
|
—
|
|
|
|
|
69
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
107
|
|
|
|
|
—
|
|
|
|
|
(107)
|
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(340)
|
|
|
|
|
(340)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
12
|
|
|
|
|
12
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
securities
|
|
89
|
|
|
|
|
5
|
|
|
|
|
84
|
|
|
|
|
—
|
|
|
|
Investments in
securities
|
|
(197)
|
|
|
|
|
(18)
|
|
|
|
|
(179)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
16
|
|
|
|
|
19
|
|
|
|
|
(3)
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(800)
|
|
|
|
|
(484)
|
|
|
|
|
(533)
|
|
|
|
|
217
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(467)
|
|
|
|
|
(467)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
149
|
|
|
|
|
149
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Treasury shares
purchased
|
|
(500)
|
|
|
|
|
(500)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(107)
|
|
|
|
|
107
|
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
1,541
|
|
|
|
|
—
|
|
|
|
|
1,541
|
|
|
|
|
—
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(2,409)
|
|
|
|
|
(1)
|
|
|
|
|
(2,408)
|
|
|
|
|
—
|
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
1,151
|
|
|
|
|
6
|
|
|
|
|
1,145
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(3)
|
|
|
|
|
(3)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(538)
|
|
|
|
|
(816)
|
|
|
|
|
171
|
|
|
|
|
107
|
|
|
Effect of exchange
rate changes on cash
|
|
10
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
(393)
|
|
|
|
|
(346)
|
|
|
|
|
(47)
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
8,320
|
|
|
|
|
7,416
|
|
|
|
|
904
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,927
|
|
|
|
$
|
7,070
|
|
|
|
$
|
857
|
|
|
|
$
|
—
|
|
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
|
2
|
Elimination of
Financial Products' profit after tax due to equity method of
accounting.
|
|
3
|
Elimination of
non-cash adjustment for the undistributed earnings from Financial
Products.
|
|
4
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
|
|
5
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
|
|
6
|
Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the Three
Months Ended March 31, 2017
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
194
|
|
|
|
$
|
192
|
|
|
|
$
|
128
|
|
|
|
$
|
(126)
|
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
710
|
|
|
|
|
491
|
|
|
|
|
219
|
|
|
|
|
—
|
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(126)
|
|
|
|
|
—
|
|
|
|
|
126
|
|
3
|
|
|
Other
|
|
302
|
|
|
|
|
302
|
|
|
|
|
(47)
|
|
|
|
|
47
|
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
(353)
|
|
|
|
|
(8)
|
|
|
|
|
52
|
|
|
|
|
(397)
|
|
4,5
|
|
|
Inventories
|
|
(444)
|
|
|
|
|
(444)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Accounts
payable
|
|
732
|
|
|
|
|
734
|
|
|
|
|
6
|
|
|
|
|
(8)
|
|
4
|
|
|
Accrued
expenses
|
|
132
|
|
|
|
|
130
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
360
|
|
|
|
|
364
|
|
|
|
|
(4)
|
|
|
|
|
—
|
|
|
|
|
Customer
advances
|
|
234
|
|
|
|
|
234
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Other assets –
net
|
|
(261)
|
|
|
|
|
(196)
|
|
|
|
|
(25)
|
|
|
|
|
(40)
|
|
4
|
|
|
Other liabilities –
net
|
|
(64)
|
|
|
|
|
(149)
|
|
|
|
|
45
|
|
|
|
|
40
|
|
4
|
Net cash provided by
(used for) operating activities
|
|
1,542
|
|
|
|
|
1,524
|
|
|
|
|
376
|
|
|
|
|
(358)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(204)
|
|
|
|
|
(203)
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
|
Expenditures for
equipment leased to others
|
|
(305)
|
|
|
|
|
(6)
|
|
|
|
|
(302)
|
|
|
|
|
3
|
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
234
|
|
|
|
|
41
|
|
|
|
|
194
|
|
|
|
|
(1)
|
|
4
|
|
Additions to finance
receivables
|
|
(2,122)
|
|
|
|
|
—
|
|
|
|
|
(2,535)
|
|
|
|
|
413
|
|
5
|
|
Collections of
finance receivables
|
|
2,272
|
|
|
|
|
—
|
|
|
|
|
2,788
|
|
|
|
|
(516)
|
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(459)
|
|
|
|
|
459
|
|
5
|
|
Proceeds from sale of
finance receivables
|
|
17
|
|
|
|
|
—
|
|
|
|
|
17
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
50
|
|
|
|
|
(1,500)
|
|
|
|
|
1,450
|
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(18)
|
|
|
|
|
(18)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
securities
|
|
89
|
|
|
|
|
6
|
|
|
|
|
83
|
|
|
|
|
—
|
|
|
|
Investments in
securities
|
|
(65)
|
|
|
|
|
(2)
|
|
|
|
|
(63)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
9
|
|
|
|
|
(1)
|
|
|
|
|
10
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(93)
|
|
|
|
|
(133)
|
|
|
|
|
(1,768)
|
|
|
|
|
1,808
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(452)
|
|
|
|
|
(452)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
(19)
|
|
|
|
|
(19)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
1,500
|
|
|
|
|
(50)
|
|
|
|
|
(1,450)
|
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
2,715
|
|
|
|
|
360
|
|
|
|
|
2,355
|
|
|
|
|
—
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(1,978)
|
|
|
|
|
(4)
|
|
|
|
|
(1,974)
|
|
|
|
|
—
|
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
618
|
|
|
|
|
226
|
|
|
|
|
392
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(6)
|
|
|
|
|
(6)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
878
|
|
|
|
|
1,605
|
|
|
|
|
723
|
|
|
|
|
(1,450)
|
|
|
Effect of exchange
rate changes on cash
|
|
9
|
|
|
|
|
3
|
|
|
|
|
6
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
2,336
|
|
|
|
|
2,999
|
|
|
|
|
(663)
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
7,199
|
|
|
|
|
5,259
|
|
|
|
|
1,940
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
9,535
|
|
|
|
$
|
8,258
|
|
|
|
$
|
1,277
|
|
|
|
$
|
—
|
|
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
|
2
|
Elimination of
Financial Products' profit after tax due to equity method of
accounting.
|
|
3
|
Elimination of
non-cash adjustment for the undistributed earnings from Financial
Products.
|
|
4
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
|
|
5
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
|
|
6
|
Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Caterpillar Inc.