Caterpillar Inc.: Files Form 8-K - 4Q 2020 Earnings Release

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Caterpillar Inc.

Caterpillar Inc.: Files Form 8-K - 4Q 2020 Earnings Release

03-Fév-2021 / 23:47 CET/CEST

Information réglementaire transmise par EQS Group.

Le contenu de ce communiqué est de la responsabilité de l'émetteur.


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 29, 2021

CATERPILLAR INC.

(Exact name of registrant as specified in its charter)

Delaware 1-768 37-0602744

(State or other jurisdiction of (Commission File (I.R.S Employer Identification No.)

incorporation) Number)

510 Lake Cook Road, Suite 100, Deerfield, Illinois 60015

(Address of principal executive offices) (Zip Code)

 Registrant's telephone number, including area code: (224) 551-4000
Former name or former address, if changed since last report: N/A

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol (s)Name of each exchange which registered

Common Stock ($1.00 par value) CAT The New York Stock Exchange

9 3/8% Debentures due March 15, 2021 CAT21 The New York Stock Exchange

8% Debentures due February 15, 2023 CAT23 The New York Stock Exchange

5.3% Debentures due September 15, 2035 CAT35 The New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Indicate by check mark whether the registrant is an emerging growth company as defined by Rule 405 of the Securities Act of

1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this

chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period

for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Item 2.02. Results of Operations and Financial Condition.

On January 29, 2021, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended December 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated into this Item 2.02 by reference.

Item 7.01. Regulation FD Disclosure.

Caterpillar Inc. is furnishing supplemental information concerning (i) retail sales of machines to end users and (ii) retail sales of power systems (including reciprocating and turbine engines and locomotives) to end users and Original Equipment Manufacturers ("OEMs"). This supplemental information is attached hereto as Exhibit 99.2 and incorporated into this Item 7.01 by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished in accordance with the provisions of General Instruction B.2 of Form 8-K.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits:

The following is furnished as an exhibit to this report:

99.1 Caterpillar Inc. press release dated January 29, 2021

99.2 Retail Statistics

104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CATERPILLAR INC.

January 29, 2021 By: /s/ Suzette M. Long

Suzette M. Long

Chief Legal Officer, General Counsel & Corporate

Secretary

 

Exhibit 99.1

Caterpillar Inc.

4Q 2020 Earnings Release

January 29, 2021

FOR IMMEDIATE RELEASE

Caterpillar Reports Fourth-Quarter and Full-Year 2020 Results

  • Caterpillar reports strong operational performance
  • Fourth-quarter 2020 profit per share of $1.42; adjusted profit per share of $2.12
  • Full-year operating profit margin percentage of 10.9%; adjusted operating profit margin of 11.8%, within 2019 Investor Day target range
  • Returned $3.4 billion to shareholders through dividends and share repurchases in 2020

($ in billions except profit per share)

Sales and Revenues

Fourth Quarter

Full Year

2020

 

2020

2019

2019

$11.2

$13.1

$41.7

$53.8

Profit Per Share

$1.42

$1.97

$5.46

$10.74

Adjusted Profit Per Share

$2.12

$2.71

$6.56

$11.40

 

DEERFIELD, Ill. - Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and full-year results for 2020.

Sales and revenues for the fourth quarter of 2020 were $11.2 billion, a 15% decrease compared with $13.1 billion in the fourth quarter of 2019. Operating profit margin was 12.3% for the fourth quarter of 2020, compared with 14.1% for the fourth quarter of 2019. Fourth-quarter 2020 profit per share was $1.42, compared with $1.97 profit per share in the fourth quarter of 2019. Adjusted profit per share in the fourth quarter of 2020 was $2.12, compared with fourth-quarter 2019 adjusted profit per share of $2.71. Fourth-quarter 2020 adjusted profit per share of $2.12 reflects strong operational performance and a lower effective tax rate.

Full-year sales and revenues in 2020 were $41.7 billion, down 22% compared with $53.8 billion in 2019. The sales decline reflected lower end-user demand and dealers reducing their inventories by $2.9 billion in 2020. Operating profit margin was 10.9% for 2020, compared with 15.4% for 2019. Full-year profit was $5.46 per share in 2020, compared with profit of $10.74 per share in 2019. Adjusted profit per share in 2020 was $6.56, compared with adjusted profit per share of $11.40 in 2019.

"I'm proud of our global team's continued resilience in safely navigating COVID-19 while continuing to provide the essential products and services the world needs," said Caterpillar Chairman and CEO Jim Umpleby. "Our fourth-quarter and full-year results reflect the team's agility in a challenging environment while executing our strategy for long-term profitable growth. We achieved the adjusted operating profit margin established during our 2019 Investor Day while continuing to invest in products and services. We are well-positioned for the future and will emerge from the pandemic as an even stronger company."

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In 2020, adjusted profit per share excluded mark-to-market losses for remeasurement of pension and other postemployment benefit (OPEB) plans and restructuring costs. In 2019, adjusted profit per share excluded mark-to-market losses for remeasurement of pension and OPEB plans, restructuring costs and a discrete tax benefit related to U.S. tax reform. Please see in the appendix on page 14 a reconciliation of GAAP to non-GAAP financial measures.

For the full year of 2020, enterprise operating cash flow was $6.3 billion. During the year, the company paid dividends of $2.2 billion and repurchased $1.1 billion of Caterpillar common stock. Liquidity remains strong with an enterprise cash balance of $9.4 billion at the end of 2020.

 

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CONSOLIDATED RESULTS

Consolidated Sales and Revenues

 

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2019 (at left) and the fourth quarter of 2020 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's Board of Directors and employees.

Total sales and revenues for the fourth quarter of 2020 were $11.235 billion, a decrease of $1.909 billion, or 15%, compared with $13.144 billion in the fourth quarter of 2019. The decline was mostly due to lower sales volume driven by lower end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.

Sales were lower across the three primary segments, with the largest decline in Energy & Transportation.

Sales and Revenues by Segment

 

(Millions of dollars)

Fourth
Quarter

2019

Sales
Volume

Price Realization

Currency

Inter-
Segment /
Other

Fourth
Quarter

2020

$
Change

% Change

Construction Industries

$ 5,020

$ (526)

$ (3)

$ 30

$ (13)

$ 4,508

$ (512)

(10%)

Resource Industries

2,395

(237)

7

7

8

2,180

(215)

(9%)

Energy & Transportation

5,949

(1,197)

12

49

(2)

4,811

(1,138)

(19%)

All Other Segment

143

3

(1)

1

(9)

137

(6)

(4%)

Corporate Items and Eliminations

(1,121)

36

2

1

16

(1,066)

55

 

Machinery, Energy & Transportation

12,386

(1,921)

17

88

-

10,570

(1,816)

(15%)

Financial Products Segment

846

-

-

-

(103)

743

(103)

(12%)

Corporate Items and Eliminations

(88)

-

-

-

10

(78)

10

 

Financial Products Revenues

758

-

-

-

(93)

665

(93)

(12%)

Consolidated Sales and Revenues

$ 13,144

$ (1,921)

$ 17

$ 88

$ (93)

$ 11,235

$ (1,909)

(15%)

 

 

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Sales and Revenues by Geographic Region

External Sales Total Sales

North America Latin America EAME Asia/Pacific and Revenues Inter-Segment and Revenues

 

(Millions of dollars) $     % Chg   $     % Chg    $    % Chg    $     % Chg   $     % Chg    $    % Chg   $      % Chg

Fourth Quarter 2020

Construction Industries $ 1,895 (16%) $ 324 (21%) $ 848 -% $ 1,417 (4%) $ 4,484 (10%) $ 24 (35%) $ 4,508 (10%)

Resource Industries 596 (29%) 394 26% 412 (22%) 651 8% 2,053 (10%) 127 7% 2,180 (9%)

Energy & Transportation 1,705 (25%) 265 (25%) 1,353 (14%) 707 (25%) 4,030 (22%) 781 -% 4,811 (19%)

All Other Segment 5 150% - -% 9 80% 18 (18%) 32 10% 105 (8%) 137 (4%)

Corporate Items and Eliminations (27)             1           (2)           (1)           (29)        (1,037)         (1,066)

Machinery, Energy & Transportation 4,174 (22%) 984 (9%) 2,620 (11%) 2,792 (8%) 10,570 (15%) - -% 10,570 (15%)

Financial Products Segment 464 (16%) 64 (14%) 94 (8%) 121 4% 743 (12%) - -% 743 (12%)

Corporate Items and Eliminations (41)           (10)           (10)           (17)           (78) - (78)

Financial Products Revenues 423 (16%) 54 (10%) 84 (10%) 104 3% 665 (12%) - -% 665 (12%)

Consolidated Sales and Revenues $ 4,597 (21%) $ 1,038 (9%) $ 2,704 (11%) $ 2,896 (8%) $ 11,235 (15%) $  - -% $ 11,235 (15%)

Fourth Quarter 2019

Construction Industries $ 2,249 $ 409 $ 850 $ 1,475 $ 4,983 $ 37 $ 5,020

Resource Industries 834 313 526 603 2,276 119 2,395

Energy & Transportation 2,287 354 1,578 947 5,166 783 5,949

All Other Segment 2 - 5 22 29 114 143

Corporate Items and Eliminations (50) - (5) (13) (68) (1,053) (1,121)

Machinery, Energy & Transportation 5,322 1,076 2,954 3,034 12,386 - 12,386

Financial Products Segment 554 74 102 116 846 - 846

Corporate Items and Eliminations (50) (14) (9) (15) (88) - (88)

Financial Products Revenues 504 60 93 101 758 - 758

Consolidated Sales and Revenues $ 5,826 $ 1,136 $ 3,047 $ 3,135 $ 13,144 $ - $ 13,144

 

 

 

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Consolidated Operating Profit

 

The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2019 (at left) and the fourth quarter of 2020 (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's other operating (income) expenses.

Operating profit for the fourth quarter of 2020 was $1.380 billion, a decrease of $470 million, or 25%, compared with $1.850 billion in the fourth quarter of 2019. The decrease was primarily the result of lower sales volume partially offset by lower manufacturing costs and selling, general and administrative (SG&A) and research and development (R&D) expenses. In addition, operating profit declined due to lower profit from Financial Products.

Manufacturing costs were lower due to favorable impact from cost absorption, lower material and period manufacturing costs, partially offset by higher warranty expense. Cost absorption was favorable as inventory decreased more in the fourth quarter of 2019 than in the fourth quarter of 2020.

SG&A/R&D expenses and period manufacturing costs benefited from reduced short-term incentive compensation expense and other cost reductions related to lower sales volumes, partially offset by higher labor and benefits costs.

 

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Profit (Loss) by Segment

(Millions of dollars)

 

Fourth Quarter

2020

Fourth Quarter

2019

 

$

Change

%
Change

Construction Industries

$

630 $

659

$

(29)

(4%)

Resource Industries

 

273

261

 

12

5%

Energy & Transportation

 

687

1,165

 

(478)

(41%)

All Other Segment

 

(3)

(11)

 

8

73%

Corporate Items and Eliminations

 

(281)

(325)

 

44

 

Machinery, Energy & Transportation

 

1,306

1,749

 

(443)

(25%)

Financial Products Segment

 

195

210

 

(15)

(7%)

Corporate Items and Eliminations

 

(47)

(6)

 

(41)

 

Financial Products

 

148

204

 

(56)

(27%)

Consolidating Adjustments

 

(74)

(103)

 

29

 

Consolidated Operating Profit

$

1,380 $

1,850

$

(470)

(25%)

 

Other Profit/Loss and Tax Items

  • Other income (expense) in the fourth quarter of 2020 was an expense of $309 million, compared with an expense of $373 million in the fourth quarter of 2019. The change was primarily driven by lower pension and OPEB costs including lower mark-to-market losses for remeasurement of pension and OPEB plans and impacts from gains (losses) on marketable securities at Insurance Services, partially offset by unfavorable impacts from foreign currency exchange gains (losses). The favorable impact of gains (losses) on marketable securities reflected unrealized gains in the fourth quarter of 2020, compared with unrealized losses in the fourth quarter of 2019 and the absence of realized gains that occurred in the fourth quarter of 2019.
  • The provision for income taxes for the fourth quarter of 2020 reflected an annual effective tax rate of approximately 28%, compared with 25% for the fourth quarter of 2019, excluding the discrete items discussed below. The increase from 2019 was primarily related to changes in the geographic mix of profits from a tax perspective.

In the fourth quarter of 2020, the company recorded a $96 million tax benefit due to the change from the third quarter estimated annual tax rate of 31%, compared to a $64 million tax benefit for the reduction in the annual effective tax rate in the fourth quarter of 2019. In addition, the company recorded a tax benefit of $92 million related to $438 million of pension and OPEB mark-to-market losses in the fourth quarter of 2020, compared to a $105 million tax benefit related to $468 million of mark-to-market losses in the fourth quarter of 2019. Finally, the company recorded a tax benefit of $28 million in the fourth quarter of 2020, compared to $13 million in the fourth quarter of 2019, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.

 

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CONSTRUCTION INDUSTRIES

(Millions of dollars)

Segment Sales

Fourth Sales Price Inter- Fourth $ %

Quarter 2019 Volume Realization Currency Segment Quarter 2020 Change Change

Total Sales

Sales by Geographic

$ 5,020

Region

Fourth Quarter 2020

$ (526)

Fourth Quarter 2019

$ (3)

$

Change

$ 30 $ (13) $ 4,508 $ (512) (10%)

%
Change

North America

$ 1,895

$ 2,249

$ (354)

(16%)

Latin America

324

409

(85)

(21%)

EAME

848

850

(2)

-%

Asia/Pacific

1,417

1,475

(58)

(4%)

External Sales

4,484

4,983

(499)

(10%)

Inter-segment

24

37

(13)

(35%)

Total Sales

$ 4,508

$ 5,020

$ (512)

(10%)

Segment Profit

 

 

 

 

 

Fourth

Fourth

 

%

 

Quarter 2020

Quarter 2019

Change

Change

Segment Profit

$ 630

$ 659

$ (29)

(4%)

Segment Profit Margin

14.0 %

13.1 %

0.9 pts

 

 

Construction Industries' total sales were $4.508 billion in the fourth quarter of 2020, a decrease of $512 million, or 10%, compared with $5.020 billion in the fourth quarter of 2019. The decrease was due to lower sales volume, driven by the impact from changes in dealer inventories and slightly lower end-user demand. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.

  • In North America, sales decreased mostly due to lower sales volume driven by the impact from changes in dealer inventories and lower end-user demand. The lower end-user demand was primarily the result of weaker pipeline and road construction. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.
  • Sales declined in Latin America primarily due to the unfavorable currency impacts from a weaker Brazilian real and lower sales volume.
  • In EAME, sales were about flat as lower sales volume across several countries in the region was offset by favorable price realization and favorable currency impacts from a stronger euro. Lower sales volume was driven by lower end-user demand, partially offset by the impact of changes in dealer inventories. Dealers decreased inventories more during the fourth quarter of 2019 than during the fourth quarter of 2020.
  • Sales decreased in Asia/Pacific primarily due to lower sales volume and unfavorable price realization, partially offset by favorable currency impacts from both a stronger Chinese yuan and Australian dollar. The decrease in sales was mainly driven by China, where higher end-user demand was more than offset by unfavorable impacts from changes in dealer inventories. This was partially offset by higher demand in several other countries.

Construction Industries' profit was $630 million in the fourth quarter of 2020, a decrease of $29 million, or 4%, compared with $659 million in the fourth quarter of 2019. The decrease was mainly due to lower sales volume and higher warranty expense, partially offset by favorable impact of cost absorption and lower SG&A/R&D expenses. Cost absorption was favorable as inventory increased during the fourth quarter of 2020, compared with a decrease

 

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during the fourth quarter of 2019. SG&A/R&D expenses benefited from reduced short-term incentive compensation expense and other cost reductions related to lower sales volumes.

 

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RESOURCE INDUSTRIES

(Millions of dollars)

Segment Sales

Fourth Sales Price Inter- Fourth $ %

Quarter 2019 Volume Realization Currency Segment Quarter 2020 Change Change

 

Total Sales

Sales by Geographic

$ 2,395

Region

Fourth Quarter 2020

$ (237)

Fourth Quarter 2019

$ 7

$

Change

$ 7 $ 8 $ 2,180 $ (215) (9%)

%
Change

North America

$ 596

$ 834

$ (238)

(29%)

Latin America

394

313

81

26%

EAME

412

526

(114)

(22%)

Asia/Pacific

651

603

48

8%

External Sales

2,053

2,276

(223)

(10%)

Inter-segment

127

119

8

7%

Total Sales

$ 2,180

$ 2,395

$ (215)

(9%)

Segment Profit

 

 

 

 

 

Fourth

Fourth

 

%

 

Quarter 2020

Quarter 2019

Change

Change

Segment Profit $ 273 $ 261 $ 12 5%

Segment Profit Margin 12.5 % 10.9 % 1.6 pts

Resource Industries' total sales were $2.180 billion in the fourth quarter of 2020, a decrease of $215 million, or 9%, compared with $2.395 billion in the fourth quarter of 2019. The decrease was due to lower end-user demand for equipment and aftermarket parts. End-user demand was lower for heavy construction and quarry and aggregates and was also lower in mining, but to a lesser extent.

Resource Industries' profit was $273 million in the fourth quarter of 2020, an increase of $12 million, or 5%, compared with $261 million in the fourth quarter of 2019. The increase was mainly due to favorable manufacturing costs and lower SG&A/R&D expenses which was mostly offset by lower sales volume. Favorable manufacturing costs reflected favorable variable labor and burden, impact of cost absorption, period manufacturing costs and material costs. Cost absorption was favorable as inventory decreased in the fourth quarter of 2019 compared with being about flat in the fourth quarter of 2020. SG&A/R&D expenses, along with period manufacturing costs, benefited from lower short-term incentive compensation expense, other cost-reduction actions implemented and benefits from prior restructuring programs.

 

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ENERGY & TRANSPORTATION

(Millions of dollars)

Segment Sales

Fourth Sales Price Inter- Fourth $ %

Quarter 2019 Volume Realization Currency Segment Quarter 2020 Change Change

Total Sales

Sales by Application

$ 5,949

Fourth Quarter 2020

$ (1,197)

Fourth Quarter 2019

$ 12

$

Change

$ 49 $ (2) $ 4,811 $ (1,138) (19%)

%
Change

Oil and Gas

$ 1,079

$ 1,523

$ (444)

(29%)

Power Generation

1,180

1,294

(114)

(9%)

Industrial

736

908

(172)

(19%)

Transportation

1,035

1,441

(406)

(28%)

External Sales

4,030

5,166

(1,136)

(22%)

Inter-segment

781

783

(2)

-%

Total Sales

$ 4,811

$ 5,949

$ (1,138)

(19%)

Segment Profit

 

 

 

 

 

Fourth

Fourth

 

%

 

Quarter 2020

Quarter 2019

Change

Change

Segment Profit

$ 687

$ 1,165

$ (478)

(41%)

Segment Profit Margin

14.3 %

19.6 %

(5.3 pts)

 

 

Energy & Transportation's total sales were $4.811 billion in the fourth quarter of 2020, a decrease of $1.138 billion, or 19%, compared with $5.949 billion in the fourth quarter of 2019. Sales declined across all applications.

  • Oil and Gas - Sales decreased mainly due to lower demand in North America for reciprocating engines used in gas compression and well servicing. In addition, sales were lower for turbines and turbine-related services.
  • Power Generation - Sales decreased primarily due to lower sales volume in small reciprocating engines, turbines and turbine-related services and engine aftermarket parts.
  • Industrial - Sales decreased due to lower demand across all regions.
  • Transportation - Sales declined in rail due to lower rail services and locomotives deliveries, primarily in North America. Marine sales were also lower.

Energy & Transportation's profit was $687 million in the fourth quarter of 2020, a decrease of $478 million, or 41%, compared with $1.165 billion in the fourth quarter of 2019. The decrease was due to lower sales volume, partially offset by lower SG&A/R&D expenses and period manufacturing costs. SG&A/R&D expenses and period manufacturing costs were mostly impacted by a reduction in short-term incentive compensation expense and other cost-reduction actions implemented in response to lower sales volumes.

 

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FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

Revenues by Geographic Region

 

Fourth Quarter 2020

Fourth Quarter 2019

$

Change

%
Change

North America

$ 464

$ 554

$ (90)

(16%)

Latin America

64

74

(10)

(14%)

EAME

94

102

(8)

(8%)

Asia/Pacific

121

116

5

4%

Total Revenues

$ 743

$ 846

$ (103)

(12%)

 

Segment Profit

Fourth Fourth %

Quarter 2020 Quarter 2019 Change Change

Segment Profit $ 195 $ 210 $ (15) (7%)

Financial Products' segment revenues were $743 million in the fourth quarter of 2020, a decrease of $103 million, or 12%, from the fourth quarter of 2019. The decrease was primarily because of lower average financing rates across all regions and lower average earning assets in North America.

Financial Products' segment profit was $195 million in the fourth quarter of 2020, compared with $210 million in the fourth quarter of 2019. The decrease was primarily due to higher provision for credit losses, an unfavorable impact from returned or repossessed equipment and lower average earning assets at Cat Financial. These unfavorable impacts were partially offset by a reduction in SG&A expenses primarily due to lower short-term incentive compensation and a favorable impact from equity securities in Insurance Services.

At the end of 2020, past dues at Cat Financial were 3.49%, compared with 3.14% at the end of 2019. Past dues increased primarily due to the impact of the COVID-19 pandemic, partially offset by decreases in the Caterpillar Power Finance, EAME and Latin American portfolios. Write-offs, net of recoveries, were $222 million for 2020, compared with $237 million for 2019. As of December 31, 2020, Cat Financial's allowance for credit losses totaled $479 million, or 1.77% of finance receivables, compared with $424 million, or 1.50% of finance receivables at December 31, 2019.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $328 million in the fourth quarter of 2020, a decrease of $3 million from the fourth quarter of 2019.

 

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Notes

  1. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.
  2. End-user demand is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Friday, January 29, 2021.
  3. Information on non-GAAP financial measures is included in the appendix on page 14.
  4. Some amounts within this report are rounded to the millions or billions and may not add.
  5. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Friday, January 29, 2021, to discuss its 2020 fourth-quarter and full-year results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/ default.aspx.

About Caterpillar

With 2020 sales and revenues of $41.7 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Since 1925, we've been driving sustainable progress and helping customers build a better world through innovative products and services. Throughout the product life cycle, we offer services built on cutting-edge technology and decades of product expertise. These products and services, backed by our global dealer network, provide exceptional value to help our customers succeed. We do business on every continent, principally operating through three primary segments - Construction Industries, Resource Industries, and Energy & Transportation - and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/social-media.

Caterpillar's latest financial results are also available online:

https://investors.caterpillar.com/overview/default.aspx

https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)

Caterpillar investor relations contact: Jennifer Driscoll, +1 224-551-4382 or Driscoll Jennifer@cat.com

Caterpillar media contact: Kate Kenny, +1 309-361-9333 or Kenny Kate@cat.com

 

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13

 

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; (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; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

 

(more)

 

14

 

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

The company believes it is important to separately quantify the profit impact of three significant items in order for the company's results to be meaningful to readers. These items consist of (i) pension and OPEB mark-to-market losses resulting from plan remeasurements, (ii) restructuring costs, which were incurred to generate longer-term benefits, and (iii) U.S. tax reform impact in 2019. 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.

Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:

Three Months Ended December 31, 2019 - US GAAP $ 1,850 14.1 % $ 1,365 $ 276 20.2 % $ 1,098 $ 1.97

Pension/OPEB mark-to-market (gains) losses

Restructuring costs

Three Months Ended December 31, 2019 - Adjusted

Twelve Months Ended December 31, 2019 - US GAAP $ 8,290 15.4 % $ 7,812 $ 1,746 22.4 % $ 6,093 $ 10.74

Pension/OPEB mark-to-market (gains) losses

Restructuring costs

U.S. tax reform impact

Twelve Months Ended December 31, 2019 - Adjusted

 

(more)

 

15

 

Supplemental Consolidating Data

The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:

Consolidated - Caterpillar Inc. and its subsidiaries.

Machinery, Energy & Transportation (ME&T) - The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T's information relates to the design, manufacturing and marketing of its products.

Financial Products - The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.

Consolidating Adjustments - Eliminations of transactions between ME&T and Financial Products.

The nature of the ME&T and Financial Products 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 believes this presentation will assist readers in understanding its business.

Pages 16 to 26 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.

 

(more)

 

16

Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)

Sales and revenues:

Three Months Ended December 31,

2020 2019

Twelve Months Ended
December 31,

2020 2019

 

 

 

 

Sales of Machinery, Energy & Transportation

$ 10,570

$ 12,386

$ 39,022

$ 50,755

Revenues of Financial Products

665

758

2,726

3,045

Total sales and revenues

11,235

13,144

41,748

53,800

Operating costs:

 

 

 

 

Cost of goods sold

7,784

9,117

29,082

36,630

Selling, general and administrative expenses

1,216

1,283

4,642

5,162

Research and development expenses

374

386

1,415

1,693

Interest expense of Financial Products

128

183

589

754

Other operating (income) expenses

353

325

1,467

1,271

Total operating costs

9,855

11,294

37,195

45,510

Operating profit

1,380

1,850

4,553

8,290

Interest expense excluding Financial Products

130

112

514

421

Other income (expense)

(309)

(373)

(44)

(57)

Consolidated profit before taxes

941

1,365

3,995

7,812

Provision (benefit) for income taxes

167

276

1,006

1,746

Profit of consolidated companies

774

1,089

2,989

6,066

Equity in profit (loss) of unconsolidated affiliated companies

6

8

14

28

Profit of consolidated and affiliated companies

780

1,097

3,003

6,094

Less: Profit (loss) attributable to noncontrolling interests

-

(1)

5

1

Profit 1

$ 780

$ 1,098

$ 2,998

$ 6,093

 

 

 

 

 

Profit per common share

$ 1.43

$ 2.00

$ 5.51

$ 10.85

Profit per common share - diluted 2

$ 1.42

$ 1.97

$ 5.46

$ 10.74

Weighted-average common shares outstanding (millions)

 

 

 

 

- Basic

544.5

550.3

544.1

561.6

- Diluted 2

549.5

556.1

548.6

567.5

 

1 Profit attributable to common shareholders.

2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

(more)

 

17

Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)

Assets

Current assets:

Cash and short-term investments

Receivables - trade and other

Receivables - finance

Prepaid expenses and other current assets

Inventories

 

December 31,

2020

 

December 31,

2019

$

9,352 7,317 9,463 1,930 11,402

$

8,284 8,568 9,336 1,739 11,266

Total current assets

 

39,464

 

39,193

Property, plant and equipment - net

 

12,401

 

12,904

Long-term receivables - trade and other

 

1,185

 

1,193

Long-term receivables - finance

 

12,222

 

12,651

Noncurrent deferred and refundable income taxes

 

1,523

 

1,411

Intangible assets

 

1,308

 

1,565

Goodwill

 

6,394

 

6,196

Other assets

 

3,827

 

3,340

Total assets

$

78,324

$

78,453

Liabilities

 

 

 

 

Current liabilities:

 

 

 

 

Short-term borrowings:

 

 

 

 

-- Machinery, Energy & Transportation

$

10

$

5

-- Financial Products

 

2,005

 

5,161

Accounts payable

 

6,128

 

5,957

Accrued expenses

 

3,642

 

3,750

Accrued wages, salaries and employee benefits

 

1,096

 

1,629

Customer advances

 

1,108

 

1,187

Dividends payable

 

562

 

567

Other current liabilities

 

2,017

 

2,155

Long-term debt due within one year:

 

 

 

 

-- Machinery, Energy & Transportation

 

1,420

 

16

-- Financial Products

 

7,729

 

6,194

Total current liabilities

 

25,717

 

26,621

Long-term debt due after one year:

 

 

 

 

-- Machinery, Energy & Transportation

 

9,749

 

9,141

-- Financial Products

 

16,250

 

17,140

Liability for postemployment benefits

 

6,872

 

6,599

Other liabilities

 

4,358

 

4,323

Total liabilities

 

62,946

 

63,824

Shareholders' equity

 

 

 

 

Common stock

 

6,230

 

5,935

Treasury stock

 

(25,178)

 

(24,217)

Profit employed in the business

 

35,167

 

34,437

Accumulated other comprehensive income (loss)

 

(888)

 

(1,567)

Noncontrolling interests

 

47

 

41

Total shareholders' equity

 

15,378

 

14,629

Total liabilities and shareholders' equity

$

78,324

$

78,453

 

(more)

 

18

Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)

Cash flow from operating activities:

Twelve Months Ended December 31,

2020 2019

 

 

Profit of consolidated and affiliated companies

$ 3,003

$ 6,094

Adjustments for non-cash items:

 

 

Depreciation and amortization

2,432

2,577

Actuarial (gain) loss on pension and postretirement benefits

384

468

Provision (benefit) for deferred income taxes

(74)

28

Other

1,000

675

Changes in assets and liabilities, net of acquisitions and divestitures:

 

 

Receivables - trade and other

1,442

171

Inventories

(34)

274

Accounts payable

98

(1,025)

Accrued expenses

(366)

172

Accrued wages, salaries and employee benefits

(544)

(757)

Customer advances

(126)

(10)

Other assets - net

(201)

(93)

Other liabilities - net

(687)

(1,662)

Net cash provided by (used for) operating activities

6,327

6,912

Cash flow from investing activities:

 

 

Capital expenditures - excluding equipment leased to others

(978)

(1,056)

Expenditures for equipment leased to others

(1,137)

(1,613)

Proceeds from disposals of leased assets and property, plant and equipment

772

1,153

Additions to finance receivables

(12,385)

(12,777)

Collections of finance receivables

12,646

12,183

Proceeds from sale of finance receivables

42

235

Investments and acquisitions (net of cash acquired)

(111)

(47)

Proceeds from sale of businesses and investments (net of cash sold)

25

41

Proceeds from sale of securities

345

529

Investments in securities

(638)

(552)

Other - net

(66)

(24)

Net cash provided by (used for) investing activities

(1,485)

(1,928)

Cash flow from financing activities:

 

 

Dividends paid

(2,243)

(2,132)

Common stock issued, including treasury shares reissued

229

238

Common shares repurchased

(1,130)

(4,047)

Proceeds from debt issued (original maturities greater than three months)

10,431

9,841

Payments on debt (original maturities greater than three months)

(8,237)

(8,297)

Short-term borrowings - net (original maturities three months or less)

(2,804)

(138)

Other - net

(1)

(3)

Net cash provided by (used for) financing activities

(3,755)

(4,538)

Effect of exchange rate changes on cash

(13)

(44)

Increase (decrease) in cash and short-term investments and restricted cash

1,074

402

Cash and short-term investments and restricted cash at beginning of period

8,292

7,890

Cash and short-term investments and restricted cash at end of period

$ 9,366

$ 8,292

 

(more)

 

19

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2020
(Unaudited)
(Millions of dollars)

Sales and revenues:

 

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial
Products

Consolidating Adjustments

 

 

 

 

Sales of Machinery, Energy & Transportation

$ 10,570 $ 10,570

$ - $ -

Revenues of Financial Products

665

-

760

(95) 1

Total sales and revenues

11,235

10,570

760

(95)

Operating costs:

 

 

 

 

Cost of goods sold

7,784

7,786

-

(2) 2

Selling, general and administrative expenses

1,216

1,048

174

(6) 2

Research and development expenses

374

374

-

-

Interest expense of Financial Products

128

-

129

(1) 3

Other operating (income) expenses

353

56

309

(12) 2

Total operating costs

9,855

9,264

612

(21)

Operating profit

1,380

1,306

148

(74)

Interest expense excluding Financial Products

130

130

-

-

Other income (expense)

(309)

(122)

39

(226) 4

Consolidated profit before taxes

941

1,054

187

(300)

Provision (benefit) for income taxes

167

133

34

-

Profit of consolidated companies

774

921

153

(300)

Equity in profit (loss) of unconsolidated affiliated companies

6

11

-

(5) 5

Profit of consolidated and affiliated companies

780

932

153

(305)

Less: Profit (loss) attributable to noncontrolling interests

-

3

2

(5) 6

Profit 7

$ 780 $

929

$ 151

$ (300)

 

 

 

 

 

1 Elimination of Financial Products' revenues earned from ME&T.

 

 

 

 

 

2 Elimination of net expenses recorded by ME&T paid to Financial Products.

3 Elimination of interest expense recorded between Financial Products and ME&T.

4 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5 Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.

6 Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.

7 Profit attributable to common shareholders.

(more)

 

20

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2019
(Unaudited)
(Millions of dollars)

Sales and revenues:

 

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial
Products

Consolidating Adjustments

 

 

 

 

Sales of Machinery, Energy & Transportation

$ 12,386 $ 12,386

$ - $ -

Revenues of Financial Products

758

-

887

(129) 1

Total sales and revenues

13,144

12,386

887

(129)

Operating costs:

 

 

 

 

Cost of goods sold

9,117

9,119

-

(2) 2

Selling, general and administrative expenses

1,283

1,120

173

(10) 2

Research and development expenses

386

386

-

-

Interest expense of Financial Products

183

-

187

(4) 3

Other operating (income) expenses

325

12

323

(10) 2

Total operating costs

11,294

10,637

683

(26)

Operating profit

1,850

1,749

204

(103)

Interest expense excluding Financial Products

112

111

-

1 3

Other income (expense)

(373)

(464)

12

79 4

Consolidated profit before taxes

1,365

1,174

216

(25)

Provision (benefit) for income taxes

276

218

58

-

Profit of consolidated companies

1,089

956

158

(25)

Equity in profit (loss) of unconsolidated affiliated companies

8

13

-

(5) 5

Profit of consolidated and affiliated companies

1,097

969

158

(30)

Less: Profit (loss) attributable to noncontrolling interests

(1)

(1)

5

(5) 6

Profit 7

$ 1,098 $

970

$ 153

$ (25)

 

 

 

 

 

1 Elimination of Financial Products' revenues earned from ME&T.

 

 

 

 

 

2 Elimination of net expenses recorded by ME&T paid to Financial Products.

3 Elimination of interest expense recorded between Financial Products and ME&T.

4 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5 Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.

6 Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.

7 Profit attributable to common shareholders.

(more)

 

21

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2020
(Unaudited)
(Millions of dollars)

Sales and revenues:

 

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial
Products

Consolidating Adjustments

 

 

 

 

Sales of Machinery, Energy & Transportation

$ 39,022 $ 39,022

$ - $ -

Revenues of Financial Products

2,726

-

3,110

(384) 1

Total sales and revenues

41,748

39,022

3,110

(384)

Operating costs:

 

 

 

 

Cost of goods sold

29,082

29,088

-

(6) 2

Selling, general and administrative expenses

4,642

3,915

746

(19) 2

Research and development expenses

1,415

1,415

-

-

Interest expense of Financial Products

589

-

591

(2) 3

Other operating (income) expenses

1,467

283

1,236

(52) 2

Total operating costs

37,195

34,701

2,573

(79)

Operating profit

4,553

4,321

537

(305)

Interest expense excluding Financial Products

514

513

-

1 3

Other income (expense)

(44)

(62)

32

  1. 4

Consolidated profit before taxes

3,995

3,746

569

(320)

Provision (benefit) for income taxes

1,006

853

153

-

Profit of consolidated companies

2,989

2,893

416

(320)

Equity in profit (loss) of unconsolidated affiliated companies

14

29

-

  1.   5

Profit of consolidated and affiliated companies

3,003

2,922

416

(335)

Less: Profit (loss) attributable to noncontrolling interests

5

5

15

(15) 6

Profit 7

$ 2,998 $

2,917

$ 401

$ (320)

 

 

 

 

 

1 Elimination of Financial Products' revenues earned from ME&T.

 

 

 

 

 

2 Elimination of net expenses recorded by ME&T paid to Financial Products.

3 Elimination of interest expense recorded between Financial Products and ME&T.

4 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5 Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.

6 Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.

7 Profit attributable to common shareholders.

(more)

 

22

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2019
(Unaudited)
(Millions of dollars)

Sales and revenues:

 

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial
Products

Consolidating Adjustments

 

 

 

 

Sales of Machinery, Energy & Transportation

$ 50,755 $ 50,755

$ - $ -

Revenues of Financial Products

3,045

-

3,571

(526) 1

Total sales and revenues

53,800

50,755

3,571

(526)

Operating costs:

 

 

 

 

Cost of goods sold

36,630

36,634

-

(4) 2

Selling, general and administrative expenses

5,162

4,444

737

(19) 2

Research and development expenses

1,693

1,693

-

-

Interest expense of Financial Products

754

-

786

(32) 3

Other operating (income) expenses

1,271

14

1,297

(40) 2

Total operating costs

45,510

42,785

2,820

(95)

Operating profit

8,290

7,970

751

(431)

Interest expense excluding Financial Products

421

429

-

(8) 3

Other income (expense)

(57)

(535)

80

398 4

Consolidated profit before taxes

7,812

7,006

831

(25)

Provision (benefit) for income taxes

1,746

1,512

234

-

Profit of consolidated companies

6,066

5,494

597

(25)

Equity in profit (loss) of unconsolidated affiliated companies

28

49

-

(21) 5

Profit of consolidated and affiliated companies

6,094

5,543

597

(46)

Less: Profit (loss) attributable to noncontrolling interests

1

-

22

(21) 6

Profit 7

$ 6,093 $

5,543

$ 575

$ (25)

 

1 Elimination of Financial Products' revenues earned from ME&T.

2 Elimination of net expenses recorded by ME&T paid to Financial Products.

3 Elimination of interest expense recorded between Financial Products and ME&T.

4 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5 Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.

6 Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.

7 Profit attributable to common shareholders.

(more)

 

23

Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2020
(Unaudited)
(Millions of dollars)

Assets

Current assets:

 

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial
Products

Consolidating
Adjustments

 

 

 

 

Cash and short-term investments

$ 9,352 $

8,822

$ 530

$ -

Receivables - trade and other

7,317

3,846

397

3,074 1,2

Receivables - finance

9,463

-

13,681

(4,218) 2

Prepaid expenses and other current assets

1,930

1,376

624

(70) 3

Inventories

11,402

11,402

-

-

Total current assets

39,464

25,446

15,232

(1,214)

Property, plant and equipment - net

12,401

8,309

4,092

-

Long-term receivables - trade and other

1,185

363

164

658 1,2

Long-term receivables - finance

12,222

-

12,895

(673) 2

Noncurrent deferred and refundable income taxes

1,523

2,058

110

(645) 4

Intangible assets

1,308

1,308

-

-

Goodwill

6,394

6,394

-

-

Other assets

3,827

3,158

1,871

(1,202) 5

Total assets

$ 78,324 $

47,036

$ 34,364

$ (3,076)

Liabilities

 

 

 

 

Current liabilities:

 

 

 

 

Short-term borrowings

$ 2,015 $

10

$ 2,005

$ -

Short-term borrowings with consolidated companies

-

-

1,000

(1,000) 6

Accounts payable

6,128

6,060

212

(144) 7

Accrued expenses

3,642

3,099

543

-

Accrued wages, salaries and employee benefits

1,096

1,081

15

-

Customer advances

1,108

1,108

-

-

Dividends payable

562

562

-

-

Other current liabilities

2,017

1,530

580

(93) 4,8

Long-term debt due within one year

9,149

1,420

7,729

-

Total current liabilities

25,717

14,870

12,084

(1,237)

Long-term debt due after one year

25,999

9,764

16,250

(15) 6

Liability for postemployment benefits

6,872

6,872

-

-

Other liabilities

4,358

3,691

1,385

(718) 4

Total liabilities

62,946

35,197

29,719

(1,970)

Shareholders' equity

 

 

 

 

Common stock

6,230

6,230

919

(919) 9

Treasury stock

(25,178)

(25,178)

-

-

Profit employed in the business

35,167

31,091

4,065

11 9

Accumulated other comprehensive income (loss)

(888)

(352)

(536)

-

Noncontrolling interests

47

48

197

(198) 9

Total shareholders' equity

15,378

11,839

4,645

(1,106)

Total liabilities and shareholders' equity

$ 78,324 $

47,036

$ 34,364

$ (3,076)

 

1 Elimination of receivables between ME&T and Financial Products.

2 Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.

3 Elimination of ME&T's insurance premiums that are prepaid to Financial Products.

4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5 Elimination of other intercompany assets between ME&T and Financial Products.

6 Elimination of debt between ME&T and Financial Products.

7 Elimination of payables between ME&T and Financial Products.

8 Elimination of prepaid insurance in Financial Products' other liabilities.

9 Eliminations associated with ME&T's investments in Financial Products' subsidiaries.

(more)

 

24

Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2019
(Unaudited)
(Millions of dollars)

Assets

Current assets:

Consolidated

Supplemental Consolidating Data

Machinery,
Energy &
Transportation

Financial
Products

Consolidating
Adjustments

 

 

 

 

Cash and short-term investments

$ 8,284

$ 7,299

$ 985

$ -

Receivables - trade and other

8,568

3,737

451

4,380 1,2

Receivables - finance

9,336

-

14,489

(5,153) 2

Prepaid expenses and other current assets

1,739

1,290

529

(80) 3

Inventories

11,266

11,266

-

-

Total current assets

39,193

23,592

16,454

(853)

Property, plant and equipment - net

12,904

8,606

4,298

-

Long-term receivables - trade and other

1,193

348

152

693 1,2

Long-term receivables - finance

12,651

-

13,354

(703) 2

Noncurrent deferred and refundable income taxes

1,411

2,002

117

(708) 4

Intangible assets

1,565

1,565

-

-

Goodwill

6,196

6,196

-

-

Other assets

3,340

2,953

1,572

(1,185) 5

Total assets

$ 78,453

$ 45,262

$ 35,947

$ (2,756)

Liabilities

 

 

 

 

Current liabilities:

 

 

 

 

Short-term borrowings

$ 5,166

$ 5

$ 5,161

$ -

Short-term borrowings with consolidated companies

-

-

600

(600) 6

Accounts payable

5,957

5,918

212

(173) 7

Accrued expenses

3,750

3,415

335

-

Accrued wages, salaries and employee benefits

1,629

1,580

49

-

Customer advances

1,187

1,187

-

-

Dividends payable

567

567

-

-

Other current liabilities

2,155

1,689

566

(100) 4,8

Long-term debt due within one year

6,210

16

6,194

-

Total current liabilities

26,621

14,377

13,117

(873)

Long-term debt due after one year

26,281

9,151

17,140

(10) 6

Liability for postemployment benefits

6,599

6,599

-

-

Other liabilities

4,323

3,681

1,430

(788) 4

Total liabilities

63,824

33,808

31,687

(1,671)

Shareholders' equity

 

 

 

 

Common stock

5,935

5,935

919

(919) 9

Treasury stock

(24,217)

(24,217)

-

-

Profit employed in the business

34,437

30,434

3,997

6 9

Accumulated other comprehensive income (loss)

(1,567)

(739)

(828)

-

Noncontrolling interests

41

41

172

(172) 9

Total shareholders' equity

14,629

11,454

4,260

(1,085)

Total liabilities and shareholders' equity

$ 78,453

$ 45,262

$ 35,947

$ (2,756)

 

1 Elimination of receivables between ME&T and Financial Products.

2 Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products' wholesale inventory receivables.

3 Elimination of ME&T's insurance premiums that are prepaid to Financial Products.

4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5 Elimination of other intercompany assets between ME&T and Financial Products.

6 Elimination of debt between ME&T and Financial Products.

7 Elimination of payables between ME&T and Financial Products.

8 Elimination of prepaid insurance in Financial Products' other liabilities.

9 Eliminations associated with ME&T's investments in Financial Products' subsidiaries.

(more)

 

25

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2020
(Unaudited)
(Millions of dollars)

Cash flow from operating activities:

Consolidated

Supplemental Consolidating Data

 

Machinery,
Energy &
Transportation

 

Financial Products

 

Consolidating Adjustments

 

 

 

 

 

 

 

 

Profit of consolidated and affiliated companies

$ 3,003

$ 2,922

$

416

$

(335)

  1. 5

Adjustments for non-cash items:

 

 

 

 

 

 

 

Depreciation and amortization

2,432

1,630

 

802

 

-

 

Actuarial (gain) loss on pension and postretirement benefits

384

384

 

-

 

-

 

Provision (benefit) for deferred income taxes

(74)

(85)

 

11

 

-

 

Other

1,000

613

 

98

 

289

2

Changes in assets and liabilities, net of acquisitions and divestitures:

 

 

 

 

 

 

 

Receivables - trade and other

1,442

395

 

50

 

997

  1. 3

Inventories

(34)

(29)

 

-

 

(5)

2

Accounts payable

98

51

 

18

 

29

2

Accrued expenses

(366)

(364)

 

(2)

 

-

 

Accrued wages, salaries and employee benefits

(544)

(510)

 

(34)

 

-

 

Customer advances

(126)

(126)

 

-

 

-

 

Other assets - net

(201)

(133)

 

(71)

 

3

2

Other liabilities - net

(687)

(694)

 

(23)

 

30

2

Net cash provided by (used for) operating activities

6,327

4,054

 

1,265

 

1,008

 

Cash flow from investing activities:

 

 

 

 

 

 

 

Capital expenditures - excluding equipment leased to others

(978)

(976)

 

(14)

 

12

2

Expenditures for equipment leased to others

(1,137)

(18)

 

(1,139)

 

20

2

Proceeds from disposals of leased assets and property, plant and equipment

772

147

 

651

 

(26)

2

Additions to finance receivables

(12,385)

-

 

(13,525)

 

1,140

3

Collections of finance receivables

12,646

-

 

14,077

 

(1,431)

3

Net intercompany purchased receivables

-

-

 

1,043

 

(1,043)

3

Proceeds from sale of finance receivables

42

-

 

42

 

-

 

Net intercompany borrowings

-

(401)

 

7

 

394

4

Investments and acquisitions (net of cash acquired)

(111)

(111)

 

-

 

-

 

Proceeds from sale of businesses and investments (net of cash sold)

25

25

 

-

 

-

 

Proceeds from sale of securities

345

24

 

321

 

-

 

Investments in securities

(638)

(21)

 

(617)

 

-

 

Other - net

(66)

(11)

 

(55)

 

-

 

Net cash provided by (used for) investing activities

(1,485)

(1,342)

 

791

 

(934)

 

Cash flow from financing activities:

 

 

 

 

 

 

 

Dividends paid

(2,243)

(2,243)

 

(320)

 

320

5

Common stock issued, including treasury shares reissued

229

229

 

-

 

-

 

Common shares repurchased

(1,130)

(1,130)

 

-

 

-

 

Net intercompany borrowings

-

(7)

 

401

 

(394)

4

Proceeds from debt issued > 90 days

10,431

1,991

 

8,440

 

-

 

Payments on debt > 90 days

(8,237)

(26)

 

(8,211)

 

-

 

Short-term borrowings - net < 90 days

(2,804)

5

 

(2,809)

 

-

 

Other - net

(1)

(1)

 

-

 

-

 

Net cash provided by (used for) financing activities

(3,755)

(1,182)

 

(2,499)

 

(74)

 

Effect of exchange rate changes on cash

(13)

(10)

 

(3)

 

-

 

Increase (decrease) in cash and short-term investments and restricted cash

1,074

1,520

 

(446)

 

-

 

Cash and short-term investments and restricted cash at beginning of period

8,292

7,302

 

990

 

-

 

Cash and short-term investments and restricted cash at end of period

$ 9,366

$ 8,822

$

544

$

-

 

 

1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.

2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

3 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.

4 Elimination of net proceeds and payments to/from ME&T and Financial Products.

5 Elimination of dividend activity between Financial Products and ME&T.

(more)

 

26

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2019
(Unaudited)
(Millions of dollars)

Cash flow from operating activities:

Consolidated

Supplemental Consolidating Data

 

Machinery,
Energy &
Transportation

 

Financial Products

 

Consolidating Adjustments

 

 

 

 

 

 

 

 

Profit of consolidated and affiliated companies

$ 6,094

$ 5,543

$

597

$

(46)

1,5

Adjustments for non-cash items:

 

 

 

 

 

 

 

Depreciation and amortization

2,577

1,713

 

864

 

-

 

Actuarial (gain) loss on pension and postretirement benefits

468

468

 

-

 

-

 

Provision (benefit) for deferred income taxes

28

15

 

13

 

-

 

Other

675

435

 

(215)

 

455

2

Changes in assets and liabilities, net of acquisitions and divestitures:

 

 

 

 

 

 

 

Receivables - trade and other

171

4

 

15

 

152

2, 3

Inventories

274

250

 

-

 

24

2

Accounts payable

(1,025)

(983)

 

20

 

(62)

2

Accrued expenses

172

187

 

(13)

 

(2)

2

Accrued wages, salaries and employee benefits

(757)

(772)

 

15

 

-

 

Customer advances

(10)

(8)

 

-

 

(2)

2

Other assets - net

(93)

(166)

 

38

 

35

2

Other liabilities - net

(1,662)

(1,815)

 

169

 

(16)

2

Net cash provided by (used for) operating activities

6,912

4,871

 

1,503

 

538

 

Cash flow from investing activities:

 

 

 

 

 

 

 

Capital expenditures - excluding equipment leased to others

(1,056)

(1,036)

 

(20)

 

-

 

Expenditures for equipment leased to others

(1,613)

(38)

 

(1,616)

 

41

2

Proceeds from disposals of leased assets and property, plant and equipment

1,153

164

 

1,092

 

(103)

2

Additions to finance receivables

(12,777)

-

 

(14,270)

 

1,493

3

Collections of finance receivables

12,183

-

 

13,537

 

(1,354)

3

Net intercompany purchased receivables

-

-

 

640

 

(640)

3

Proceeds from sale of finance receivables

235

-

 

235

 

-

 

Net intercompany borrowings

-

900

 

3

 

(903)

4

Investments and acquisitions (net of cash acquired)

(47)

  1.              

 

-

 

-

 

Proceeds from sale of businesses and investments (net of cash sold)

41

3

 

38

 

-

 

Proceeds from sale of securities

529

32

 

497

 

-

 

Investments in securities

(552)

(27)

 

(525)

 

-

 

Other - net

(24)

1

 

(25)

 

-

 

Net cash provided by (used for) investing activities

(1,928)

  1.  

 

(414)

 

(1,466)

 

Cash flow from financing activities:

 

 

 

 

 

 

 

Dividends paid

(2,132)

(2,132)

 

(25)

 

25

5

Common stock issued, including treasury shares reissued

238

238

 

-

 

-

 

Common shares repurchased

(4,047)

(4,047)

 

-

 

-

 

Net intercompany borrowings

-

(3)

 

(900)

 

903

4

Proceeds from debt issued > 90 days

9,841

1,479

 

8,362

 

-

 

Payments on debt > 90 days

(8,297)

(12)

 

(8,285)

 

-

 

Short-term borrowings - net < 90 days

(138)

5

 

(143)

 

-

 

Other - net

(3)

(3)

 

-

 

-

 

Net cash provided by (used for) financing activities

(4,538)

(4,475)

 

(991)

 

928

 

Effect of exchange rate changes on cash

(44)

(40)

 

(4)

 

-

 

Increase (decrease) in cash and short-term investments and restricted cash

402

308

 

94

 

-

 

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

$ 8,292

$ 7,302

$

990

$

-

 

 

1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.

2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

3 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.

4 Elimination of net proceeds and payments to/from ME&T and Financial Products.

5 Elimination of dividend activity between Financial Products and ME&T.

#

 

Caterpillar Inc. ("Caterpillar", "we" or "our") is furnishing supplemental information concerning (i) retail sales of machines to end users and (ii) retail sales of power systems (including reciprocating and turbine engines and locomotives) to end users and Original Equipment Manufacturers ("OEMs"). Caterpillar sells the majority of its machinery and power systems to independently owned and operated dealers and OEMs to meet the demands of their customers, the end users. Caterpillar believes that this supplemental information may help readers better understand Caterpillar's business and the industries it serves, particularly in light of the time delay between Caterpillar's sales to dealers and dealers' sales to end users.

In this report, we are providing information by geographic region for retail sales of machines in each of our Resource Industries and Construction Industries reportable segments, as well as information regarding total retail sales of our machines globally. For our Energy & Transportation reportable segment, we are providing retail sales information by major end use.

The information presented in this report is primarily based on unaudited reports that are voluntarily provided to Caterpillar by its independent dealers and which are not subject to Caterpillar's internal controls over financial reporting. Accordingly, the data collected from such third parties may not be accurate and/or complete. As such, the information presented in this report is intended solely to convey an approximate indication of the trends, direction and magnitude of retail sales and is not intended to be an estimate, approximation or prediction of, or substitute for, Caterpillar's audited financial statements filed with the U.S. Securities and Exchange Commission. This information is furnished under this report with the U.S. Securities and Exchange Commission. Caterpillar does not undertake to update or adjust prior period information.

 

Exhibit 99.2

 

Caterpillar Inc.

Rolling 3 Month Retail Sales Statistics

Total Machines

December 2020

November 2020

October 2020

Asia/Pacific

Up 7%

Up 2%

Up 3%

EAME

Down 5%

Down 10%

Down 15%

Latin America

Up 31%

Up 8%

Down 7%

North America

Down 9%

Down 20%

Down 28%

World

Down 2%

Down 11%

Down 17%

Resource Industries

December 2020

November 2020

October 2020

Asia/Pacific

Down 18%

Down 17%

Down 14%

EAME

Up 1%

Unchanged

Down 20%

Latin America

Up 77%

Up 2%

Down 29%

North America

Down 13%

Down 25%

Down 44%

World

Down 3%

Down 13%

Down 29%

Construction Industries

December 2020

November 2020

October 2020

Asia/Pacific

Up 16%

Up 8%

Up 9%

EAME

Down 7%

Down 13%

Down 13%

Latin America

Up 11%

Up 10%

Up 6%

North America

Down 8%

Down 19%

Down 24%

World

Down 1%

Down 9%

Down 13%

Reported in constant dollars and based on unit sales as reported primarily by dealers.

 

Glossary of Terms

Construction Industries: Our Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure, forestry and building construction. The majority of sales in this segment are made in the heavy and general construction, rental, quarry and aggregates markets and mining. The Construction Industries product portfolio primarily includes the following machines:

  •                                                                                             asphalt pavers · forestry excavators · small and medium
  •                                                                                             backhoe loaders · motorgraders track-type tractors
  •                                                                                             compactors · pipelayers · track-type loaders
  •                                                                                             cold planers · road reclaimers · wheel excavators
  •                                                                                             compact track and · site prep tractors · compact, small and

multi-terrain loaders · skid steer loaders medium wheel loaders

  •                                                                                             mini, small, medium · telehandlers · utility vehicles
    and large excavators

Effective September 2019, Caterpillar has divested its Forestry product segment. Those products have been removed from the Construction Industries product portfolio where any remaining product Dealer Inventory will be reported in Total Machines as they are depleted.

EAME: Europe, Africa, Commonwealth of Independent States and Middle East

Energy & Transportation: Our Energy & Transportation segment is primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives, integrated systems and solutions, and related parts across industries serving oil and gas, power generation, industrial and marine applications as well as rail-related businesses.

Resource Industries: Our Resource Industries segment is primarily responsible for supporting customers using machinery in mining, quarry, waste and material handling applications. The Resource Industries product portfolio primarily includes the following machines:

  •                                                                                             electric rope shovels · longwall miners · landfill compactors
  •                                                                                             draglines · large wheel loaders · soil compactors
  •                                                                                             hydraulic shovels · off-highway trucks · machinery components
  •                                                                                             rotary drills · articulated trucks · electronics and control systems
  •                                                                                             hard rock vehicles · wheel tractor scrapers · select work tools
  •                                                                                             large track-type tractors · wheel dozers · hard rock continuous mining
  •              large mining trucks

For purposes of this report, retail sales of longwall miners are not included in the information presented above for Resource Industries or Total Machines.

 

FORWARD-LOOKING STATEMENTS

Certain statements in this report 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; (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; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.


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Langue : Français
Entreprise : Caterpillar Inc.
510 Lake Cook Road, Suite 100
60015 Deerfield, Illinois
États-Unis
Téléphone : 224-551-4000
Internet : www.caterpillar.com
ISIN : US1491231015
Ticker Euronext : CATR
Catégorie AMF : Informations privilégiées / Communiqué sur comptes, résultats
EQS News ID : 1165674
 
Fin du communiqué EQS News-Service

1165674  03-Fév-2021 CET/CEST

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