DEERFIELD, Ill., April 24, 2019 /PRNewswire/ --
- First-quarter sales and revenues increased 5%
- Record first-quarter profit per share
- Profit per share outlook now $12.06 to $13.06
due to a first-quarter discrete tax benefit of $0.31 per share
- Repurchased $751 million in
company stock
|
First
Quarter
|
($ in billions except
profit per share)
|
2019
|
2018
|
Sales and
Revenues
|
$13.5
|
$12.9
|
Profit Per
Share
|
$3.25
|
$2.74
|
Caterpillar Inc. (NYSE: CAT) today announced first-quarter 2019
sales and revenues of $13.5 billion,
compared with $12.9 billion in the
first quarter of 2018, a 5% increase. First-quarter 2019 profit of
$3.25 per share was a first-quarter
record. This was a 19% increase compared with the previous record
first-quarter profit per share of $2.74 in 2018.
Profit per share in the first quarter of 2019 included a
discrete tax benefit related to U.S. tax reform of $178 million, or $0.31 per share. Profit per share in the first
quarter of 2018 included restructuring costs of $0.08 per share.
During the first quarter of 2019, Machinery, Energy &
Transportation (ME&T) operating cash flow was $860 million. In the first quarter of 2019, the
company repurchased $751 million of
Caterpillar common stock and paid dividends of $494 million. The enterprise cash balance at the
end of the first quarter of 2019 was $7.1
billion.
"The global Caterpillar team delivered record first-quarter
profit per share," said Caterpillar Chairman and CEO Jim Umpleby. "We are executing our strategy for
profitable growth by investing in services, expanding our offerings
and improving operational excellence."
2019 Outlook
The company continues to have confidence in the fundamentals of
its diverse end markets, and expectations for 2019 performance are
unchanged. However, due to a $0.31
per share discrete tax benefit, Caterpillar is revising its profit
per share outlook to a range of $12.06 to $13.06,
compared with the previous outlook range of $11.75 to $12.75.
The first-quarter discrete tax benefit of $178 million, or $0.31 per share, is related to U.S. tax reform as
a result of final regulations recently issued by the U.S. Treasury.
The outlook does not include a mark-to-market gain or loss for
remeasurement of pension and other postemployment benefit plans,
which will be excluded from adjusted profit per share in the fourth
quarter of 2019 along with any other discrete items.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
First Quarter 2019 vs. First Quarter 2018
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar first-quarter 2019
earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Sales and Revenues between the first quarter of
2018 (at left) and the first quarter of 2019 (at right).
Caterpillar management utilizes these charts internally to visually
communicate with the company's Board of Directors and
employees.
Total sales and revenues of $13.466
billion in the first quarter of 2019, increased $607 million, or 5%, compared with $12.859 billion in the first quarter of 2018. The
increase was primarily due to higher sales volume driven by
improved demand for both equipment and services, with the most
significant increase in Resource Industries. Sales volume also
increased in Construction Industries, while Energy &
Transportation was about flat. Sales grew in all regions except for
EAME, with the largest gains in North
America and Asia/Pacific.
Favorable price realization, primarily in Construction Industries
and Resource Industries, also contributed to the sales improvement.
The increase was partially offset by unfavorable currency impacts
due to a stronger U.S. dollar.
Sales and Revenues
by Segment
|
(Millions of dollars)
|
First
Quarter
2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment /
Other
|
|
First
Quarter
2019
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
5,677
|
|
|
$
|
164
|
|
|
$
|
156
|
|
|
$
|
(127)
|
|
|
$
|
3
|
|
|
$
|
5,873
|
|
|
$
|
196
|
|
|
3%
|
Resource
Industries
|
2,309
|
|
|
371
|
|
|
110
|
|
|
(42)
|
|
|
(21)
|
|
|
2,727
|
|
|
418
|
|
|
18%
|
Energy &
Transportation
|
5,219
|
|
|
21
|
|
|
27
|
|
|
(91)
|
|
|
34
|
|
|
5,210
|
|
|
(9)
|
|
|
—%
|
All Other
Segment
|
116
|
|
|
1
|
|
|
—
|
|
|
(1)
|
|
|
5
|
|
|
121
|
|
|
5
|
|
|
4%
|
Corporate Items and
Eliminations
|
(1,171)
|
|
|
(14)
|
|
|
(1)
|
|
|
—
|
|
|
(21)
|
|
|
(1,207)
|
|
|
(36)
|
|
|
|
Machinery, Energy
& Transportation
|
$
|
12,150
|
|
|
$
|
543
|
|
|
$
|
292
|
|
|
$
|
(261)
|
|
|
$
|
—
|
|
|
$
|
12,724
|
|
|
$
|
574
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
|
793
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57
|
|
|
$
|
850
|
|
|
$
|
57
|
|
|
7%
|
Corporate Items and
Eliminations
|
(84)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24)
|
|
|
(108)
|
|
|
(24)
|
|
|
|
Financial
Products Revenues
|
$
|
709
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
742
|
|
|
$
|
33
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
12,859
|
|
|
$
|
543
|
|
|
$
|
292
|
|
|
$
|
(261)
|
|
|
$
|
33
|
|
|
$
|
13,466
|
|
|
$
|
607
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
2,965
|
|
|
13%
|
|
$
|
319
|
|
|
(7%)
|
|
$
|
1,006
|
|
|
(6%)
|
|
$
|
1,562
|
|
|
(4%)
|
|
$
|
5,852
|
|
|
3%
|
|
$
|
21
|
|
|
17%
|
|
$
|
5,873
|
|
|
3%
|
Resource
Industries
|
951
|
|
|
19%
|
|
423
|
|
|
18%
|
|
468
|
|
|
(10%)
|
|
805
|
|
|
52%
|
|
2,647
|
|
|
20%
|
|
80
|
|
|
(21%)
|
|
2,727
|
|
|
18%
|
Energy &
Transportation
|
2,151
|
|
|
(3%)
|
|
332
|
|
|
19%
|
|
1,032
|
|
|
(5%)
|
|
718
|
|
|
6%
|
|
4,233
|
|
|
(1%)
|
|
977
|
|
|
4%
|
|
5,210
|
|
|
—%
|
All Other
Segment
|
8
|
|
|
(47%)
|
|
—
|
|
|
—%
|
|
11
|
|
|
175%
|
|
18
|
|
|
—%
|
|
37
|
|
|
—%
|
|
84
|
|
|
6%
|
|
121
|
|
|
4%
|
Corporate Items and
Eliminations
|
(41)
|
|
|
|
|
1
|
|
|
|
|
(3)
|
|
|
|
|
(2)
|
|
|
|
|
(45)
|
|
|
|
|
(1,162)
|
|
|
|
|
(1,207)
|
|
|
|
Machinery, Energy
& Transportation
|
6,034
|
|
|
7%
|
|
1,075
|
|
|
9%
|
|
2,514
|
|
|
(6%)
|
|
3,101
|
|
|
9%
|
|
12,724
|
|
|
5%
|
|
—
|
|
|
—%
|
|
12,724
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
558
|
|
|
9%
|
|
70
|
|
|
(5%)
|
|
102
|
|
|
1%
|
|
120
|
|
|
13%
|
|
850
|
|
|
7%
|
|
—
|
|
|
—%
|
|
850
|
|
|
7%
|
Corporate Items and
Eliminations
|
(69)
|
|
|
|
|
(11)
|
|
|
|
|
(9)
|
|
|
|
|
(19)
|
|
|
|
|
(108)
|
|
|
|
|
—
|
|
|
|
|
(108)
|
|
|
|
Financial
Products Revenues
|
489
|
|
|
6%
|
|
59
|
|
|
(3%)
|
|
93
|
|
|
(3%)
|
|
101
|
|
|
13%
|
|
742
|
|
|
5%
|
|
—
|
|
|
—%
|
|
742
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
6,523
|
|
|
7%
|
|
$
|
1,134
|
|
|
8%
|
|
$
|
2,607
|
|
|
(6%)
|
|
$
|
3,202
|
|
|
9%
|
|
$
|
13,466
|
|
|
5%
|
|
$
|
—
|
|
|
—%
|
|
$
|
13,466
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
2,620
|
|
|
|
|
$
|
344
|
|
|
|
|
$
|
1,067
|
|
|
|
|
$
|
1,628
|
|
|
|
|
$
|
5,659
|
|
|
|
|
$
|
18
|
|
|
|
|
$
|
5,677
|
|
|
|
Resource
Industries
|
798
|
|
|
|
|
360
|
|
|
|
|
520
|
|
|
|
|
530
|
|
|
|
|
2,208
|
|
|
|
|
101
|
|
|
|
|
2,309
|
|
|
|
Energy &
Transportation
|
2,225
|
|
|
|
|
280
|
|
|
|
|
1,092
|
|
|
|
|
679
|
|
|
|
|
4,276
|
|
|
|
|
943
|
|
|
|
|
5,219
|
|
|
|
All Other
Segment
|
15
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
18
|
|
|
|
|
37
|
|
|
|
|
79
|
|
|
|
|
116
|
|
|
|
Corporate Items and
Eliminations
|
(28)
|
|
|
|
|
1
|
|
|
|
|
(3)
|
|
|
|
|
—
|
|
|
|
|
(30)
|
|
|
|
|
(1,141)
|
|
|
|
|
(1,171)
|
|
|
|
Machinery, Energy
& Transportation
|
5,630
|
|
|
|
|
985
|
|
|
|
|
2,680
|
|
|
|
|
2,855
|
|
|
|
|
12,150
|
|
|
|
|
—
|
|
|
|
|
12,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
512
|
|
|
|
|
74
|
|
|
|
|
101
|
|
|
|
|
106
|
|
|
|
|
793
|
|
|
|
|
—
|
|
|
|
|
793
|
|
|
|
Corporate Items and
Eliminations
|
(49)
|
|
|
|
|
(13)
|
|
|
|
|
(5)
|
|
|
|
|
(17)
|
|
|
|
|
(84)
|
|
|
|
|
—
|
|
|
|
|
(84)
|
|
|
|
Financial
Products Revenues
|
463
|
|
|
|
|
61
|
|
|
|
|
96
|
|
|
|
|
89
|
|
|
|
|
709
|
|
|
|
|
—
|
|
|
|
|
709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
6,093
|
|
|
|
|
$
|
1,046
|
|
|
|
|
$
|
2,776
|
|
|
|
|
$
|
2,944
|
|
|
|
|
$
|
12,859
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
12,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Profit
Consolidated Operating Profit Comparison
First Quarter 2019 vs. First Quarter 2018
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar first-quarter 2019
earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Operating Profit between the first quarter of 2018
(at left) and the first quarter of 2019 (at right). Caterpillar
management utilizes these charts internally to visually communicate
with the company's Board of Directors and employees. The bar titled
Other includes consolidating adjustments and Machinery, Energy
& Transportation other operating (income) expenses.
Operating profit for the first quarter of 2019 was $2.207 billion, compared with $2.108 billion in the first quarter of 2018. The
increase of $99 million was mostly
due to favorable price realization and higher sales volume,
partially offset by higher manufacturing costs and increased
selling, general and administrative (SG&A) and research and
development (R&D) expenses. The increase in manufacturing costs
was primarily due to higher variable labor and burden, including
freight costs, and material costs, including tariffs.
SG&A/R&D expenses were higher primarily due to increased
targeted investments and timing of corporate-level expenses,
partially offset by lower short-term incentive compensation
expense.
Operating profit margin was 16.4% for the first quarter of 2019
and 2018.
Profit by
Segment
|
(Millions of dollars)
|
First Quarter
2019
|
|
First Quarter
2018
|
|
$
Change
|
|
%
Change
|
Construction
Industries
|
$
|
1,085
|
|
|
$
|
1,117
|
|
|
$
|
(32)
|
|
|
(3%)
|
Resource
Industries
|
576
|
|
|
378
|
|
|
198
|
|
|
52%
|
Energy &
Transportation
|
838
|
|
|
874
|
|
|
(36)
|
|
|
(4%)
|
All Other
Segment
|
25
|
|
|
57
|
|
|
(32)
|
|
|
(56%)
|
Corporate Items and
Eliminations
|
(375)
|
|
|
(371)
|
|
|
(4)
|
|
|
|
Machinery, Energy
& Transportation
|
$
|
2,149
|
|
|
$
|
2,055
|
|
|
$
|
94
|
|
|
5%
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
|
211
|
|
|
$
|
141
|
|
|
$
|
70
|
|
|
50%
|
Corporate Items and
Eliminations
|
(46)
|
|
|
(2)
|
|
|
(44)
|
|
|
|
Financial
Products
|
$
|
165
|
|
|
$
|
139
|
|
|
$
|
26
|
|
|
19%
|
|
|
|
|
|
|
|
|
Consolidating
Adjustments
|
(107)
|
|
|
(86)
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit
|
$
|
2,207
|
|
|
$
|
2,108
|
|
|
$
|
99
|
|
|
5%
|
|
|
|
|
|
|
|
|
Other Profit/Loss and Tax Items
The provision for income taxes in the first quarter of 2019
reflected an estimated annual tax rate of 26%, compared with 24%
for the first quarter of 2018, excluding the discrete items
discussed in the following paragraph. The increase was largely
driven by the application of U.S. tax reform provisions to the
earnings of certain non-U.S. subsidiaries, which do not have a
calendar fiscal year-end. These provisions did not apply to these
subsidiaries in 2018.
As a result of final regulations received in January 2019 related to the mandatory deemed
repatriation of non-U.S. earnings due to U.S. tax reform,
Caterpillar recorded a discrete tax benefit of $178 million in the first quarter of 2019. In
addition, a discrete tax benefit of $23
million was recorded in the first quarter of 2019, compared
with $40 million in the first quarter
of 2018, for the settlement of stock-based compensation awards with
associated tax deductions in excess of cumulative U.S. GAAP
compensation expense.
CONSTRUCTION
INDUSTRIES
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
First Quarter
2019
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
$
|
5,677
|
|
|
$
|
164
|
|
|
$
|
156
|
|
|
$
|
(127)
|
|
|
$
|
3
|
|
|
$
|
5,873
|
|
|
$
|
196
|
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
First Quarter
2019
|
|
First Quarter
2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$
|
2,965
|
|
|
$
|
2,620
|
|
|
$
|
345
|
|
|
13%
|
|
|
|
|
|
|
|
|
|
Latin
America
|
319
|
|
|
344
|
|
|
(25)
|
|
|
(7%)
|
|
|
|
|
|
|
|
|
|
EAME
|
1,006
|
|
|
1,067
|
|
|
(61)
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
1,562
|
|
|
1,628
|
|
|
(66)
|
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
External
Sales
|
5,852
|
|
|
5,659
|
|
|
193
|
|
|
3%
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
21
|
|
|
18
|
|
|
3
|
|
|
17%
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$
|
5,873
|
|
|
$
|
5,677
|
|
|
$
|
196
|
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
First Quarter
2019
|
|
First Quarter
2018
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$
|
1,085
|
|
|
$
|
1,117
|
|
|
$
|
(32)
|
|
|
(3%)
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
18.5%
|
|
|
19.7%
|
|
|
(1.2pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Industries' total sales were $5.873 billion in the first quarter of 2019,
compared with $5.677 billion in the
first quarter of 2018. The increase was mostly due to higher
end-user demand for construction equipment, partially offset by a
smaller increase in dealer inventories compared with the first
quarter of 2018. Favorable price realization was partially offset
by unfavorable currency impacts due to a stronger U.S. dollar.
- In North America, the sales
increase was driven by higher demand for new equipment, primarily
to support road construction activities. Favorable price
realization also contributed to the sales improvement.
- Construction activities remained at low levels in Latin America.
- In EAME, the sales decrease was primarily due to a smaller
increase in dealer inventories compared with the first quarter of
2018, and a weaker euro, partially offset by favorable price
realization.
- Sales in Asia/Pacific declined
due to unfavorable currency impacts.
Construction Industries' profit was $1.085 billion in the first quarter of 2019,
compared with $1.117 billion in the
first quarter of 2018. The decrease in profit was a result of
higher manufacturing costs, partially offset by favorable price
realization. Manufacturing costs increased primarily due to higher
material, labor and freight costs.
RESOURCE
INDUSTRIES
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
First Quarter
2019
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
$
|
2,309
|
|
|
$
|
371
|
|
|
$
|
110
|
|
|
$
|
(42)
|
|
|
$
|
(21)
|
|
|
$
|
2,727
|
|
|
$
|
418
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
First Quarter
2019
|
|
First Quarter
2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$
|
951
|
|
|
$
|
798
|
|
|
$
|
153
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
Latin
America
|
423
|
|
|
360
|
|
|
63
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
EAME
|
468
|
|
|
520
|
|
|
(52)
|
|
|
(10%)
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
805
|
|
|
530
|
|
|
275
|
|
|
52%
|
|
|
|
|
|
|
|
|
|
External
Sales
|
2,647
|
|
|
2,208
|
|
|
439
|
|
|
20%
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
80
|
|
|
101
|
|
|
(21)
|
|
|
(21%)
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$
|
2,727
|
|
|
$
|
2,309
|
|
|
$
|
418
|
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
First Quarter
2019
|
|
First Quarter
2018
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$
|
576
|
|
|
$
|
378
|
|
|
$
|
198
|
|
|
52%
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
21.1%
|
|
|
16.4%
|
|
|
4.7pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource Industries' total sales were $2.727 billion in the first quarter of 2019, an
increase of $418 million from the
first quarter of 2018. The increase was primarily due to higher
equipment demand, favorable price realization and services. Mining
production levels and commodity market fundamentals remained
positive, which supported higher sales. Higher demand levels for
non-residential construction activities and quarry and aggregate
operations also drove higher sales.
Resource Industries' profit was $576
million in the first quarter of 2019, compared with
$378 million in the first quarter of
2018. The improvement was mostly due to higher sales volume.
Favorable price realization was partially offset by higher
manufacturing costs, including increased material and freight costs
and slightly higher warranty expense.
ENERGY &
TRANSPORTATION
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
First Quarter
2019
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
$
|
5,219
|
|
|
$
|
21
|
|
|
$
|
27
|
|
|
$
|
(91)
|
|
|
$
|
34
|
|
|
$
|
5,210
|
|
|
$
|
(9)
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Application
|
|
|
|
|
|
|
|
|
|
First Quarter
2019
|
|
First Quarter
2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Oil and
Gas
|
$
|
1,131
|
|
|
$
|
1,215
|
|
|
$
|
(84)
|
|
|
(7%)
|
|
|
|
|
|
|
|
|
|
Power
Generation
|
1,036
|
|
|
969
|
|
|
67
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
Industrial
|
904
|
|
|
906
|
|
|
(2)
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
Transportation
|
1,162
|
|
|
1,186
|
|
|
(24)
|
|
|
(2%)
|
|
|
|
|
|
|
|
|
|
External
Sales
|
4,233
|
|
|
4,276
|
|
|
(43)
|
|
|
(1%)
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
977
|
|
|
943
|
|
|
34
|
|
|
4%
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$
|
5,210
|
|
|
$
|
5,219
|
|
|
$
|
(9)
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
First Quarter
2019
|
|
First Quarter
2018
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$
|
838
|
|
|
$
|
874
|
|
|
$
|
(36)
|
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
16.1%
|
|
|
16.7%
|
|
|
(0.6pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's total sales were $5.210 billion in the first quarter of 2019,
about flat compared with $5.219
billion in the first quarter of 2018. Decreases due to
unfavorable currency impacts from a stronger U.S. dollar were
nearly offset by favorable price realization and higher sales
volumes.
- Oil and Gas – Sales were negatively impacted by the timing of
turbine project deliveries in North
America. The decrease was partially offset by higher demand
for reciprocating engines for gas compression in North America.
- Power Generation – Sales increased primarily due to higher
shipments for large diesel reciprocating engine applications in all
regions except EAME.
- Industrial – Sales were about flat, with a decrease in EAME
primarily due to unfavorable currency impacts nearly offset by
higher sales in North
America.
- Transportation – Sales were slightly lower primarily due to
unfavorable currency impacts.
Energy & Transportation's profit was $838 million in the first quarter of 2019,
compared with $874 million in the
first quarter of 2018. The decrease was mostly due to higher
manufacturing costs including increased freight costs, higher
warranty expense and slightly higher labor costs. The decrease was
partially offset by favorable price realization and higher sales
volume.
FINANCIAL PRODUCTS
SEGMENT
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
First Quarter
2019
|
|
First Quarter
2018
|
|
$
Change
|
|
%
Change
|
North
America
|
$
|
558
|
|
|
$
|
512
|
|
|
$
|
46
|
|
|
9%
|
Latin
America
|
70
|
|
|
74
|
|
|
(4)
|
|
|
(5%)
|
EAME
|
102
|
|
|
101
|
|
|
1
|
|
|
1%
|
Asia/Pacific
|
120
|
|
|
106
|
|
|
14
|
|
|
13%
|
Total
|
$
|
850
|
|
|
$
|
793
|
|
|
$
|
57
|
|
|
7%
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
First Quarter
2019
|
|
First Quarter
2018
|
|
Change
|
|
%
Change
|
Segment
Profit
|
$
|
211
|
|
|
$
|
141
|
|
|
$
|
70
|
|
|
50%
|
|
|
|
|
|
|
|
|
Financial Products' segment revenues were $850 million in the first quarter of 2019, an
increase of $57 million, or 7%, from
the first quarter of 2018. The increase was primarily due to higher
average financing rates and higher average earning assets in
North America and Asia/Pacific.
Financial Products' segment profit was $211 million in the first quarter of 2019,
compared with $141 million in the
first quarter of 2018. The increase was primarily due to a
$42 million favorable impact from
mark-to-market on equity securities in Insurance Services, an
increase in net yield on average earning assets and a decrease in
the provision for credit losses at Cat Financial.
At the end of the first quarter of 2019, past dues at Cat
Financial were 3.61%, compared with 3.17% at the end of the first
quarter of 2018. The increase in past dues was primarily driven by
Cat Power Finance, concentrated in the marine portfolio.
Write-offs, net of recoveries, were $30
million for the first quarter of both 2019 and 2018. As of
March 31, 2019, Cat Financial's
allowance for credit losses totaled $534
million, or 1.89% of finance receivables, compared with
$511 million, or 1.80% of finance
receivables, at December 31,
2018.
QUESTIONS AND
ANSWERS
|
|
|
Q1:
|
Can you provide
more information on the $178 million discrete tax benefit related
to U.S. tax reform?
|
|
|
A:
|
On January 15, 2019,
the U.S. Treasury issued final regulations related to the mandatory
deemed repatriation of non-U.S. earnings required by U.S. tax
reform. Due to clarification provided in these regulations
supporting the position taken on Caterpillar's tax return, the
company reduced its tax reserves (unrecognized tax benefits) with a
corresponding benefit to the provision for income taxes in the
first quarter of 2019. A reconciliation of profit per share
excluding this discrete tax benefit can be found in the appendix on
Page 19.
|
|
|
Q2:
|
Can you discuss
changes in dealer inventories during the first quarter of 2019 and
the outlook for the year?
|
|
|
A:
|
Dealers generally
increase inventories during the first quarter in preparation for
the spring selling season. Dealer machine and engine inventories
increased about $1.3 billion during the first quarter of 2019,
compared with an increase of about $1.2 billion during the first
quarter of 2018. The company believes the increase in dealer
inventories is reflective of current end-user demand. Caterpillar's
expectation remains that dealer inventories should be about flat
for the full year.
|
|
|
Q3:
|
Can you discuss
changes to your order backlog by segment?
|
|
|
A:
|
At the end of the
first quarter of 2019, the order backlog was $16.9 billion, about
$300 million higher than the fourth quarter of 2018. The increase
was in Construction Industries and Energy & Transportation,
partially offset by a decrease in Resource Industries due to higher
dealer inventories.
|
|
|
Q4:
|
Can you comment on
expense related to your 2019 short-term incentive compensation
plans?
|
|
|
A:
|
Short-term incentive
compensation expense is directly related to financial and
operational performance, measured against targets set annually.
First-quarter 2019 expense was about $220 million, compared with
first-quarter 2018 expense of about $360 million. For 2019,
short-term incentive compensation expense is expected to be
significantly lower than 2018.
|
Notes:
- Glossary of terms is included on the Caterpillar website at
http://www.caterpillar.com/investors/.
- Information on non-GAAP financial measures is included in
the appendix on page 19.
- Caterpillar will conduct a teleconference and live webcast,
with a slide presentation, beginning at 10
a.m. Central Time on Wednesday, April 24, 2019, to discuss
its 2019 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 2018 sales
and revenues of $54.722 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," "forecast," "target," "guide,"
"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) international trade policies and their impact on demand for our
products and our competitive position, including the imposition of
new tariffs or changes in existing tariff rates; (vi) our ability
to develop, produce and market quality products that meet our
customers' needs; (vii) the impact of the highly competitive
environment in which we operate on our sales and pricing; (viii)
information technology security threats and computer crime; (ix)
inventory management decisions and sourcing practices of our
dealers and our OEM customers; (x) a failure to realize, or a delay
in realizing, all of the anticipated benefits of our acquisitions,
joint ventures or divestitures; (xi) union disputes or other
employee relations issues; (xii) adverse effects of unexpected
events including natural disasters; (xiii) disruptions or
volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers;
(xiv) 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; (xv) our Financial Products segment's risks
associated with the financial services industry; (xvi) changes in
interest rates or market liquidity conditions; (xvii) an increase
in delinquencies, repossessions or net losses of Cat Financial's
customers; (xviii) currency fluctuations; (xix) our or Cat
Financial's compliance with financial and other restrictive
covenants in debt agreements; (xx) increased pension plan funding
obligations; (xxi) alleged or actual violations of trade or
anti-corruption laws and regulations; (xxii) additional tax expense
or exposure, including the impact of U.S. tax reform; (xxiii)
significant legal proceedings, claims, lawsuits or government
investigations; (xxiv) new regulations or changes in financial
services regulations; (xxv) compliance with environmental laws and
regulations; and (xxvi) other factors described in more detail in
Caterpillar's Forms 10-Q, 10-K and other filings with the
Securities and Exchange Commission.
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 12-18 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 online:
http://www.caterpillar.com/en/investors.html
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,
|
|
|
2019
|
|
2018
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
12,724
|
|
|
|
$
|
12,150
|
|
|
|
Revenues of Financial
Products
|
|
742
|
|
|
|
|
709
|
|
|
|
Total sales and
revenues
|
|
13,466
|
|
|
|
|
12,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
9,003
|
|
|
|
|
8,566
|
|
|
|
Selling, general and
administrative expenses
|
|
1,319
|
|
|
|
|
1,276
|
|
|
|
Research and
development expenses
|
|
435
|
|
|
|
|
443
|
|
|
|
Interest expense of
Financial Products
|
|
190
|
|
|
|
|
166
|
|
|
|
Other operating
(income) expenses
|
|
312
|
|
|
|
|
300
|
|
|
|
Total operating
costs
|
|
11,259
|
|
|
|
|
10,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,207
|
|
|
|
|
2,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
103
|
|
|
|
|
101
|
|
|
|
Other income
(expense)
|
|
160
|
|
|
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,264
|
|
|
|
|
2,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
387
|
|
|
|
|
472
|
|
|
|
Profit of
consolidated companies
|
|
1,877
|
|
|
|
|
1,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
7
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,884
|
|
|
|
|
1,667
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit (loss)
attributable to noncontrolling interests
|
|
3
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
1
|
$
|
1,881
|
|
|
|
$
|
1,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share
|
$
|
3.29
|
|
|
|
$
|
2.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share – diluted 2
|
$
|
3.25
|
|
|
|
$
|
2.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
572.4
|
|
|
|
|
598.0
|
|
|
|
-
Diluted2
|
|
578.8
|
|
|
|
|
608.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
7,128
|
|
|
|
$
|
7,857
|
|
|
|
|
Receivables – trade
and other
|
|
8,961
|
|
|
|
|
8,802
|
|
|
|
|
Receivables –
finance
|
|
8,932
|
|
|
|
|
8,650
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
1,765
|
|
|
|
|
1,765
|
|
|
|
|
Inventories
|
|
12,340
|
|
|
|
|
11,529
|
|
|
|
Total
current assets
|
|
39,126
|
|
|
|
|
38,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
13,259
|
|
|
|
|
13,574
|
|
|
|
Long-term receivables
– trade and other
|
|
1,149
|
|
|
|
|
1,161
|
|
|
|
Long-term receivables
– finance
|
|
12,674
|
|
|
|
|
13,286
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
1,378
|
|
|
|
|
1,439
|
|
|
|
Intangible
assets
|
|
1,807
|
|
|
|
|
1,897
|
|
|
|
Goodwill
|
|
6,191
|
|
|
|
|
6,217
|
|
|
|
Other
assets
|
|
3,142
|
|
|
|
|
2,332
|
|
|
Total
assets
|
$
|
78,726
|
|
|
|
$
|
78,509
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
4
|
|
|
|
$
|
—
|
|
|
|
|
|
-- Financial
Products
|
|
5,586
|
|
|
|
|
5,723
|
|
|
|
|
Accounts
payable
|
|
7,198
|
|
|
|
|
7,051
|
|
|
|
|
Accrued
expenses
|
|
3,746
|
|
|
|
|
3,573
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
1,200
|
|
|
|
|
2,384
|
|
|
|
|
Customer
advances
|
|
1,354
|
|
|
|
|
1,243
|
|
|
|
|
Dividends
payable
|
|
—
|
|
|
|
|
495
|
|
|
|
|
Other current
liabilities
|
|
2,348
|
|
|
|
|
1,919
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
13
|
|
|
|
|
10
|
|
|
|
|
|
-- Financial
Products
|
|
5,939
|
|
|
|
|
5,820
|
|
|
|
Total current
liabilities
|
|
27,388
|
|
|
|
|
28,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
7,650
|
|
|
|
|
8,005
|
|
|
|
|
|
-- Financial
Products
|
|
16,590
|
|
|
|
|
16,995
|
|
|
|
Liability for
postemployment benefits
|
|
7,441
|
|
|
|
|
7,455
|
|
|
|
Other
liabilities
|
|
4,179
|
|
|
|
|
3,756
|
|
|
Total
liabilities
|
|
63,248
|
|
|
|
|
64,429
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,804
|
|
|
|
|
5,827
|
|
|
|
Treasury
stock
|
|
(21,214)
|
|
|
|
|
(20,531)
|
|
|
|
Profit employed in
the business
|
|
32,435
|
|
|
|
|
30,427
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,588)
|
|
|
|
|
(1,684)
|
|
|
|
Noncontrolling
interests
|
|
41
|
|
|
|
|
41
|
|
|
Total
shareholders' equity
|
|
15,478
|
|
|
|
|
14,080
|
|
|
Total liabilities
and shareholders' equity
|
$
|
78,726
|
|
|
|
$
|
78,509
|
|
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of
dollars)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2019
|
|
2018
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
1,884
|
|
|
|
$
|
1,667
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
641
|
|
|
|
|
681
|
|
|
|
|
Other
|
|
88
|
|
|
|
|
148
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
(150)
|
|
|
|
|
(326)
|
|
|
|
|
Inventories
|
|
(813)
|
|
|
|
|
(803)
|
|
|
|
|
Accounts
payable
|
|
355
|
|
|
|
|
486
|
|
|
|
|
Accrued
expenses
|
|
135
|
|
|
|
|
66
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(1,185)
|
|
|
|
|
(1,110)
|
|
|
|
|
Customer
advances
|
|
105
|
|
|
|
|
(46)
|
|
|
|
|
Other assets –
net
|
|
(44)
|
|
|
|
|
165
|
|
|
|
|
Other liabilities –
net
|
|
105
|
|
|
|
|
7
|
|
|
Net cash provided by
(used for) operating activities
|
|
1,121
|
|
|
|
|
935
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(278)
|
|
|
|
|
(412)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(269)
|
|
|
|
|
(345)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
209
|
|
|
|
|
258
|
|
|
|
Additions to finance
receivables
|
|
(2,615)
|
|
|
|
|
(2,621)
|
|
|
|
Collections of
finance receivables
|
|
2,818
|
|
|
|
|
2,671
|
|
|
|
Proceeds from sale of
finance receivables
|
|
44
|
|
|
|
|
69
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(2)
|
|
|
|
|
(340)
|
|
|
|
Proceeds from sale of
business and investments (net of cash sold)
|
|
—
|
|
|
|
|
12
|
|
|
|
Proceeds from sale of
securities
|
|
57
|
|
|
|
|
89
|
|
|
|
Investments in
securities
|
|
(107)
|
|
|
|
|
(197)
|
|
|
|
Other –
net
|
|
(38)
|
|
|
|
|
16
|
|
|
Net cash provided by
(used for) investing activities
|
|
(181)
|
|
|
|
|
(800)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(494)
|
|
|
|
|
(467)
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
(5)
|
|
|
|
|
149
|
|
|
|
Common shares
repurchased
|
|
(751)
|
|
|
|
|
(500)
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
2,665
|
|
|
|
|
1,541
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(2,567)
|
|
|
|
|
(2,409)
|
|
|
|
Short-term borrowings
– net (original maturities three months or less)
|
|
(522)
|
|
|
|
|
1,151
|
|
|
|
Other –
net
|
|
(1)
|
|
|
|
|
(3)
|
|
|
Net cash provided by
(used for) financing activities
|
|
(1,675)
|
|
|
|
|
(538)
|
|
|
Effect of exchange
rate changes on cash
|
|
3
|
|
|
|
|
10
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
(732)
|
|
|
|
|
(393)
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
7,890
|
|
|
|
|
8,320
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,158
|
|
|
|
$
|
7,927
|
|
|
|
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, 2019
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy
&
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
12,724
|
|
|
|
$
|
12,724
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
742
|
|
|
|
|
—
|
|
|
|
|
870
|
|
|
|
|
(128)
|
|
2
|
|
Total sales and
revenues
|
|
13,466
|
|
|
|
|
12,724
|
|
|
|
|
870
|
|
|
|
|
(128)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
9,003
|
|
|
|
|
9,003
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Selling, general and
administrative expenses
|
|
1,319
|
|
|
|
|
1,127
|
|
|
|
|
192
|
|
|
|
|
—
|
|
|
|
Research and
development expenses
|
|
435
|
|
|
|
|
435
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
190
|
|
|
|
|
—
|
|
|
|
|
200
|
|
|
|
|
(10)
|
|
4
|
|
Other operating
(income) expenses
|
|
312
|
|
|
|
|
10
|
|
|
|
|
313
|
|
|
|
|
(11)
|
|
3
|
|
Total operating
costs
|
|
11,259
|
|
|
|
|
10,575
|
|
|
|
|
705
|
|
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,207
|
|
|
|
|
2,149
|
|
|
|
|
165
|
|
|
|
|
(107)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
103
|
|
|
|
|
110
|
|
|
|
|
—
|
|
|
|
|
(7)
|
|
4
|
|
Other income
(expense)
|
|
160
|
|
|
|
|
19
|
|
|
|
|
41
|
|
|
|
|
100
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,264
|
|
|
|
|
2,058
|
|
|
|
|
206
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
387
|
|
|
|
|
335
|
|
|
|
|
52
|
|
|
|
|
—
|
|
|
|
Profit of
consolidated companies
|
|
1,877
|
|
|
|
|
1,723
|
|
|
|
|
154
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
7
|
|
|
|
|
7
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
148
|
|
|
|
|
—
|
|
|
|
|
(148)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,884
|
|
|
|
|
1,878
|
|
|
|
|
154
|
|
|
|
|
(148)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
3
|
|
|
|
|
(3)
|
|
|
|
|
6
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,881
|
|
|
|
$
|
1,881
|
|
|
|
$
|
148
|
|
|
|
$
|
(148)
|
|
|
|
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, 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 Cash Flow
For the Three
Months Ended March 31, 2019
(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
|
$
|
1,884
|
|
|
|
$
|
1,878
|
|
|
|
$
|
154
|
|
|
|
$
|
(148)
|
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
641
|
|
|
|
|
424
|
|
|
|
|
217
|
|
|
|
|
—
|
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(148)
|
|
|
|
|
—
|
|
|
|
|
148
|
|
3
|
|
|
Other
|
|
88
|
|
|
|
|
49
|
|
|
|
|
(59)
|
|
|
|
|
98
|
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
(150)
|
|
|
|
|
75
|
|
|
|
|
(24)
|
|
|
|
|
(201)
|
|
4,5
|
|
|
Inventories
|
|
(813)
|
|
|
|
|
(818)
|
|
|
|
|
—
|
|
|
|
|
5
|
|
4
|
|
|
Accounts
payable
|
|
355
|
|
|
|
|
336
|
|
|
|
|
12
|
|
|
|
|
7
|
|
4
|
|
|
Accrued
expenses
|
|
135
|
|
|
|
|
124
|
|
|
|
|
11
|
|
|
|
|
—
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(1,185)
|
|
|
|
|
(1,177)
|
|
|
|
|
(8)
|
|
|
|
|
—
|
|
|
|
|
Customer
advances
|
|
105
|
|
|
|
|
105
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Other assets –
net
|
|
(44)
|
|
|
|
|
(16)
|
|
|
|
|
28
|
|
|
|
|
(56)
|
|
4
|
|
|
Other liabilities –
net
|
|
105
|
|
|
|
|
28
|
|
|
|
|
19
|
|
|
|
|
58
|
|
4
|
Net cash provided by
(used for) operating activities
|
|
1,121
|
|
|
|
|
860
|
|
|
|
|
350
|
|
|
|
|
(89)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(278)
|
|
|
|
|
(274)
|
|
|
|
|
(4)
|
|
|
|
|
—
|
|
|
|
Expenditures for
equipment leased to others
|
|
(269)
|
|
|
|
|
(23)
|
|
|
|
|
(247)
|
|
|
|
|
1
|
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
209
|
|
|
|
|
26
|
|
|
|
|
189
|
|
|
|
|
(6)
|
|
4
|
|
Additions to finance
receivables
|
|
(2,615)
|
|
|
|
|
—
|
|
|
|
|
(2,971)
|
|
|
|
|
356
|
|
5
|
|
Collections of
finance receivables
|
|
2,818
|
|
|
|
|
—
|
|
|
|
|
3,096
|
|
|
|
|
(278)
|
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(16)
|
|
|
|
|
16
|
|
5
|
|
Proceeds from sale of
finance receivables
|
|
44
|
|
|
|
|
—
|
|
|
|
|
44
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
63
|
|
|
|
|
—
|
|
|
|
|
(63)
|
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(2)
|
|
|
|
|
(2)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
securities
|
|
57
|
|
|
|
|
4
|
|
|
|
|
53
|
|
|
|
|
—
|
|
|
|
Investments in
securities
|
|
(107)
|
|
|
|
|
(7)
|
|
|
|
|
(100)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(38)
|
|
|
|
|
(13)
|
|
|
|
|
(25)
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(181)
|
|
|
|
|
(226)
|
|
|
|
|
19
|
|
|
|
|
26
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(494)
|
|
|
|
|
(494)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
(5)
|
|
|
|
|
(5)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Common shares
repurchased
|
|
(751)
|
|
|
|
|
(751)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(63)
|
|
|
|
|
63
|
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
2,665
|
|
|
|
|
—
|
|
|
|
|
2,665
|
|
|
|
|
—
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(2,567)
|
|
|
|
|
(2)
|
|
|
|
|
(2,565)
|
|
|
|
|
—
|
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
(522)
|
|
|
|
|
4
|
|
|
|
|
(526)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(1)
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(1,675)
|
|
|
|
|
(1,249)
|
|
|
|
|
(489)
|
|
|
|
|
63
|
|
|
Effect of exchange
rate changes on cash
|
|
3
|
|
|
|
|
5
|
|
|
|
|
(2)
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
(732)
|
|
|
|
|
(610)
|
|
|
|
|
(122)
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
7,890
|
|
|
|
|
6,994
|
|
|
|
|
896
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,158
|
|
|
|
$
|
6,384
|
|
|
|
$
|
774
|
|
|
|
$
|
—
|
|
|
|
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, 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
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Common shares
repurchased
|
|
(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.
|
|
APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP
financial measures. 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 believes it is important to separately quantify the
profit impact of two significant items in order for the company's
results to be meaningful to readers. These items consist of a
discrete tax benefit related to U.S. tax reform in the first
quarter of 2019, and 2018 restructuring costs, which were incurred
to generate longer-term benefits. The company does not consider
these items indicative of earnings from ongoing business activities
and believes the non-GAAP measure provides investors with useful
perspective on underlying business results and trends and aids with
assessing the company's period-over-period results. The company
intends to discuss adjusted profit per share for the fourth quarter
and full year 2019, excluding a mark-to-market gain or loss for
remeasurement of pension and other postemployment benefit plans
along with any other discrete items.
Reconciliations of adjusted profit per share to the most
directly comparable GAAP measure, diluted profit per share, are as
follows:
|
First
Quarter
|
|
Outlook
|
|
|
2018
|
|
2019
|
|
Previous1
|
|
Current2
|
|
Profit per
share
|
$2.74
|
|
$3.25
|
|
$11.75-$12.75
|
|
$12.06-$13.06
|
|
Per share U.S. tax
reform impact
|
—
|
|
($0.31)
|
|
—
|
|
($0.31)
|
|
Per share
restructuring costs3
|
$0.08
|
|
—
|
|
—
|
|
—
|
|
Adjusted profit per
share
|
$2.82
|
|
$2.94
|
|
$11.75-$12.75
|
|
$11.75-$12.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Profit
per share outlook range as of January 28, 2019.
|
2 Profit
per share outlook range as of April 24, 2019.
|
3 At
estimated annual tax rate of 24 percent. 2019 restructuring costs
are not material.
|
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SOURCE Caterpillar Inc.