CATERPILLAR INC. Fourth-quarter 2020 sales and revenues were USD11.235 billion, down USD1.909 billion, or 15 percent, from USD13.144 billion in the fourth quarter of 2019. Fourth-quarter 2020 profit was USD1.42 per share, compared with USD1.97 per share in the fourth quarter of 2019. Fourth-quarter 2020 profit was USD780 million, compared with USD1.098 billion in 2019.
Highlights for 2020 include: ? Sales and revenues for 2020 were USD41.748 billion, a decrease of 22 percent from 2019. Sales were lower across all
regions and in the three primary segments. ? Operating profit as a percent of sales and revenues was 10.9 percent in 2020, compared with 15.4 percent in 2019. ? Profit was USD5.46 per share for 2020, and excluding the items in the table below, adjusted profit per share was
USD6.56. For 2019 profit was USD10.74 per share, and excluding the items in the table below, adjusted profit per share
was USD11.40. ? In order for our results to be more meaningful to our readers, we have separately quantified the impact of several
significant items. A detailed reconciliation of GAAP to non-GAAP financial measures is included on page 56.
Full Year 2020 Full Year 2019
(Dollars in millions except per share
data) Profit Before Profit Per Share Profit Before Profit Per Share
Taxes Taxes
Profit........................ USD 3,995 USD 5.46 USD 7,812 USD 10.74
Mark-to-market losses1 383 0.55 468 0.64
Restructuring costs1 354 0.55 236 0.34
U.S. tax reform impact............. - - - (0.31)
Adjusted profit.................. USD 4,732 USD 6.56 USD 8,516 USD 11.40 1At statutory tax rates.
Certain amounts may not add due to rounding. ? Enterprise operating cash flow was USD6.3 billion in 2020. Caterpillar ended 2020 with USD9.4 billion of enterprise
cash and more than USD14 billion of available liquidity sources.
Response to COVID-19 and Global Business Conditions
We continue to implement safeguards in our facilities to protect team members, including increased frequency of cleaning and disinfecting, social distancing practices and other measures consistent with specific governmental requirements and guidance from health authorities. At the end of 2020, globally and across our three primary segments, nearly all of our primary production facilities continued to operate. This continues to fluctuate as conditions warrant, including the pace of economic recovery and the potential for additional COVID-related temporary shutdowns. We have continued to take actions to reduce costs and prioritize our spending to provide for investment in services and expanded offerings, key elements of our strategy for profitable growth, which was introduced in 2017.
Notes: ? Glossary of terms included on pages 41-43; first occurrence of terms shown in bold italics. ? Information on non-GAAP financial measures is included on page 56.
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Table of Contents ? Some amounts within this report are rounded to the millions or billions and may not add. In addition, the sum of
the components reported across periods may not equal the total amount reported year-to-date due to rounding.
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Table of Contents
2020 COMPARED WITH 2019
CONSOLIDATED SALES AND REVENUES
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between 2019 (at left) and 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 2020 were USD41.748 billion, a decrease of USD12.052 billion, or 22 percent, compared with USD53.800 billion in 2019. The decline was due to lower sales volume driven by lower end-user demand for equipment and services and the impact from changes in dealer inventories across the three primary segments. Dealers decreased machine and engine inventories about USD2.9 billion during 2020, compared with an increase of about USD800 million during 2019.
Sales were lower across all regions and in the three primary segments.
North America sales declined 31 percent driven by lower end-user demand and the impact from changes in dealer inventories. Dealers decreased inventories during 2020, compared with an increase during 2019.
Sales decreased 28 percent in Latin America due to lower sales volume across the region, driven by lower end-user demand and the impact from changes in dealer inventories. In addition, sales were lower due to unfavorable currency impacts from a weaker Brazilian real. Dealers decreased inventories during 2020 and increased inventories during 2019.
EAME sales decreased 12 percent due to lower sales volume in most countries across the region, driven by lower end-user demand and the impact from changes in dealer inventories. Dealers decreased inventories more during 2020 than 2019.
Asia/Pacific sales decreased 16 percent due to lower demand across the region. Lower demand was driven by the impact from changes in dealer inventories and lower end-user demand. Dealers decreased inventories during 2020 and increased inventories during 2019.
Dealers decreased machine and engine inventories about USD2.9 billion during 2020, compared with an increase of about USD800 million during 2019. Dealers are independent, and the reasons for changes in their inventory levels vary, including their expectations of future demand and product delivery times. Dealers' demand expectations take into account seasonal changes, macroeconomic conditions, machine rental rates and other factors. Delivery times can vary based on availability of product from Caterpillar factories and product distribution centers. We do not expect a significant dealer inventory reduction in 2021.
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Table of Contents
Sales and Revenues by Segment Inter-
Sales Price Segment USD %
(Millions of dollars) Volume Realization Currency / 2020 Change
Other Change
2019
Construction Industries............USD 22,649 USD (5,154) USD (399) USD (127) USD (51) USD 16,918 USD (5,731) (25%)
Resource Industries.............10,276 (2,204) (81) (82) (3) 7,906 (2,370) (23%)
Energy & Transportation.............22,097 (3,827) 43 (37) (806) 17,470 (4,627) (21%)
All Other Segment.............500 (14) - - (19) 467 (33) (7%)
Corporate Items and Eliminations............. 146 2 1 879 (3,739) 1,028
(4,767)
Machinery, Energy & Transportation............. (11,053) (435) (245) - 39,022 (11,733) (23%)
50,755
Financial Products Segment.............3,434 - - - (390) 3,044 (390) (11%)
Corporate Items and Eliminations ..........(389) - - - 71 (318) 71
Financial Products Revenues.............3,045 - - - (319) 2,726 (319) (10%)
Consolidated Sales and Revenues....USD 53,800 USD USD (435) USD (245) USD (319) USD 41,748 USD (22%)
(11,053) (12,052) Sales and Revenues by Geographic Region
External Total Sales
North America Latin America EAME Asia/Pacific Sales and Inter-Segment and
Revenues Revenues
% % % % % % %
(Millions of dollars) USD Chg USD Chg USD Chg USD Chg USD Chg USD Chg USD Chg
2020
Construction Industries (36%) USD 1,031 (33%) USD 3,466 (14%) USD 5,014 (10%) USD (25%) USD 42 (55%) USD 16,918 (25%)
..............USD 7,365 16,876
Resource Industries (37%) 1,253 (18%) 1,570 (14%) 2,337 (17%) 7,446 (24%) 460 (1%) 7,906 (23%)
...................2,286
Energy & Transportation. (23%) 932 (33%) 4,448 (11%) 2,441 (25%) 14,664 (21%) 2,806 (22%) 17,470 (21%)
...............6,843
All Other Segment 8% 4 (43%) 26 (7%) 56 (16%) 113 (11%) 354 (5%) 467 (7%)
.....................27
Corporate Items and Eliminations (4) (6) (5) (77) (3,662) (3,739)
...........(62)
Machinery, Energy & (31%) 3,216 (28%) 9,504 (12%) 9,843 (16%) 39,022 (23%) - -% 39,022 (23%)
Transportation ....16,459
Financial Products Segment. (14%) 257 (14%) 392 (4%) 465 (5%) 3,044 1 (11%) - -% 3,044 (11%)
.............1,930
Corporate Items and Eliminations (41) (38) (64) (318) - (318)
...........(175)
Financial Products Revenues (12%) 216 (13%) 354 (5%) 401 (5%) 2,726 (10%) - -% 2,726 (10%)
............. 1,755 (MORE TO FOLLOW) Dow Jones Newswires
February 18, 2021 14:47 ET (19:47 GMT)
