PEORIA, Ill., July 23, 2015 /PRNewswire/ -- Caterpillar
Inc. (NYSE: CAT) today announced profit per share of $1.16 for the second quarter of 2015, a decrease
from $1.57 per share in the second
quarter of 2014. Excluding restructuring costs, profit per
share was $1.27, down from
$1.69 per share in the second quarter
of 2014. Second-quarter 2015 sales and revenues were
$12.3 billion, down from $14.2 billion, or 13 percent, in the second
quarter of 2014.
"Our Caterpillar team continues its track record of solid
operational performance in the face of difficult conditions in
several of the key industries we serve. Because we serve
cyclical industries, we focus intently on operational execution and
cost control. This is particularly important when sales
decline; our goal when sales decline is to manage costs so the
decline in operating profit is less than 30 percent of the decline
in sales and revenues. We did much better than that in the
second quarter. We've achieved that by closely watching
costs, the restructuring we've done over the past two years and the
work done by Caterpillar employees across the world who are proving
we can excel in this challenging economic environment," said
Caterpillar Chairman and Chief Executive Officer Doug Oberhelman.
"Our focus during these challenging times is on operational
execution and customer success through efforts like Lean
Management and our Across the Table
initiative with dealers, while also investing in tomorrow through
new technologies, innovation and data analytics – both within
Caterpillar, and by partnering with and investing in other
companies," continued Oberhelman.
The economic and industry conditions that were expected at the
beginning of the year are occurring. World economic growth is
about as the company expected: severe weakness in mining continues,
construction-related sales in China and Brazil are lower and new orders for
oil-related applications declined.
2015 Outlook
The 2015 outlook for profit per share is unchanged at
$4.70, or $5.00 excluding restructuring costs. The
outlook for 2015 sales and revenues is about $49 billion, which is down $1 billion from the previous outlook.
"We originally set the $50 billion
sales and revenues estimate in January, and our expectations
haven't changed much since then. However,
currency impacts from a stronger U.S. dollar are
causing sales in many countries to translate into fewer dollars
than we initially expected," said Oberhelman.
"While economic conditions in the
United States are modestly positive, the global economy
remains relatively stagnant. Many of the key industries we
serve remain weak, and we haven't seen sustained signs of
improvement. Continuing economic weakness in China and Brazil, as well as uncertainty in the Eurozone
and over Greece, haven't helped
confidence. Prices for commodities like coal, iron ore and
oil are not signaling an improvement in the short term. We
are committed to controlling costs as we manage through this
downturn, and that will position Caterpillar for better results
when conditions improve," added Oberhelman.
Stock Repurchase
Caterpillar is announcing its intention to repurchase
approximately $1.5 billion of
Caterpillar common stock during the third quarter of 2015.
The $1.5 billion expected
repurchase is in addition to the approximately $500 million of stock that was repurchased in the
first half of 2015, and $4.2 billion
repurchased in 2014. However, our stock repurchase plans are
always subject to the company's cash deployment priorities and can
change based on business and market conditions.
"In addition to operational execution around cost, quality and
safety, we have a strong balance sheet and generated $1.6 billion of ME&T operating cash flow in
the second quarter. Repurchasing stock is one way we return
capital to stockholders, and our healthy balance sheet and strong
cash flow are helping us do that despite weakness in the cyclical
industries we serve. In addition to the share repurchase, the
Board raised the quarterly dividend 10 percent in June," said
Oberhelman.
Notes:
- Glossary of terms is included on pages 17-18; first
occurrence of terms shown in bold italics.
- Information on non-GAAP financial measures is included on
page 19.
About Caterpillar:
For 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 2014 sales and revenues of $55.184 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 product 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 Release relate to future events and
expectations and are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Words such as "believe," "estimate," "will be," "will,"
"would," "expect," "anticipate," "plan," "project," "intend,"
"could," "should" or other similar words or expressions often
identify forward-looking statements. All statements other
than statements of historical fact are forward-looking statements,
including, without limitation, statements regarding our outlook,
projections, forecasts or trend descriptions. These
statements do not guarantee future performance, and 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) government monetary or fiscal policies
and infrastructure spending; (iii) commodity price changes,
component price increases, fluctuations in demand for our products
or significant shortages of component products; (iv) disruptions or
volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers;
(v) political and economic risks, commercial instability and events
beyond our control in the countries in which we operate; (vi)
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; (vii) our Financial Products segment's risks associated
with the financial services industry; (viii) changes in interest
rates or market liquidity conditions; (ix) an increase in
delinquencies, repossessions or net losses of Cat Financial's
customers; (x) new regulations or changes in financial services
regulations; (xi) a failure to realize, or a delay in realizing,
all of the anticipated benefits of our acquisitions, joint ventures
or divestitures; (xii) international trade policies and their
impact on demand for our products and our competitive position;
(xiii) our ability to develop, produce and market quality products
that meet our customers' needs; (xiv) the impact of the highly
competitive environment in which we operate on our sales and
pricing; (xv) failure to realize all of the anticipated benefits
from initiatives to increase our productivity, efficiency and cash
flow and to reduce costs; (xvi) additional restructuring costs or a
failure to realize anticipated savings or benefits from past or
future cost reduction actions; (xvii) inventory management
decisions and sourcing practices of our dealers and our OEM
customers; (xviii) compliance with environmental laws and
regulations; (xix) alleged or actual violations of trade or
anti-corruption laws and regulations; (xx) additional tax expense
or exposure; (xxi) currency fluctuations; (xxii) our or Cat
Financial's compliance with financial covenants; (xxiii) increased
pension plan funding obligations; (xxiv) union disputes or other
employee relations issues; (xxv) significant legal proceedings,
claims, lawsuits or government investigations; (xxvi) changes in
accounting standards; (xxvii) failure or breach of IT security;
(xxviii) adverse effects of unexpected events including natural
disasters; and (xxix) other factors described in more detail under
"Item 1A. Risk Factors" in our Form 10-K filed with the SEC on
February 17, 2015 for the year ended
December 31, 2014.
|
Key
Points
|
|
|
Second Quarter
2015
(Dollars in
millions except per share data)
|
|
Second
Quarter
2015
|
|
Second
Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
Machinery, Energy &
Transportation Sales
|
$
|
11,583
|
|
|
$
|
13,391
|
|
|
$
|
(1,808)
|
|
|
(14)
|
|
%
|
|
Financial Products
Revenues
|
|
734
|
|
|
|
759
|
|
|
|
(25)
|
|
|
(3)
|
|
%
|
|
Total Sales and
Revenues
|
$
|
12,317
|
|
|
$
|
14,150
|
|
|
$
|
(1,833)
|
|
|
(13)
|
|
%
|
|
Profit
|
$
|
710
|
|
|
$
|
999
|
|
|
$
|
(289)
|
|
|
(29)
|
|
%
|
|
Profit per common share
- diluted
|
$
|
1.16
|
|
|
$
|
1.57
|
|
|
$
|
(0.41)
|
|
|
(26)
|
|
%
|
|
Profit per common share
- diluted (excluding restructuring costs)
|
$
|
1.27
|
|
|
$
|
1.69
|
|
|
$
|
(0.42)
|
|
|
(25)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second-Quarter 2015 Highlights
- Second-quarter sales and revenues were $12.317 billion, down 13 percent from the second
quarter of 2014.
- Restructuring costs were $89
million in the second quarter of 2015, with an after-tax
impact of $0.11 per share.
- Profit per share was $1.16 in the
second quarter of 2015 and $1.27 per
share excluding restructuring costs. Profit in the second quarter
of 2014 was $1.57 per share and
$1.69 per share excluding
restructuring costs.
- ME&T operating cash flow was $1.638
billion in the second quarter of 2015, compared with
$2.064 billion in the second quarter
of 2014.
- ME&T debt-to-capital ratio was 35.8 percent,
compared with 37.4 percent at the end of 2014.
- The company announced its intention to repurchase $1.5 billion of stock during the third quarter of
2015.
2015 Outlook
- Our outlook for 2015 sales and revenues is now about
$49 billion compared with our
previous outlook of about $50
billion.
- Our outlook for 2015 profit per share of $4.70, or $5.00 per
share excluding restructuring costs of about $250 million, remains unchanged.
- We expect ME&T capital expenditures in 2015 to be about the
same as 2014 capital expenditures of $1.6
billion.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
Second Quarter 2015 vs. Second Quarter 2014
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the
downloadable version of Caterpillar 2Q 2014 earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Sales and Revenues between the second quarter of
2014 (at left) and the second quarter of 2015 (at right).
Items favorably impacting sales and revenues appear as upward stair
steps with the corresponding dollar amounts above each bar, while
items negatively impacting sales and revenues appear as downward
stair steps with dollar amounts reflected in parentheses above each
bar. Caterpillar management utilizes these charts internally
to visually communicate with the company's Board of Directors and
employees.
Sales and Revenues
Total sales and revenues were $12.317
billion in the second quarter of 2015, compared with
$14.150 billion in the second quarter
of 2014, a decline of $1.833 billion
or 13 percent. The decrease was primarily due to lower
sales volume and the unfavorable impact
of currency, resulting mostly from the weakening of the euro, the
Japanese yen and the Brazilian real. Price
realization was slightly favorable. While sales for
both new equipment and aftermarket parts declined, most of the
decrease was for new equipment.
Sales declined in all regions. Asia/Pacific sales declined 22 percent,
primarily due to lower end-user demand for construction and
mining equipment and products used in oil and gas
applications. In addition, the impact of currency was
unfavorable as sales, mostly in Japanese yen and Australian
dollars, translated into fewer U.S. dollars. In North
America, sales decreased 7 percent, primarily due to lower end-user
demand for rail applications and construction equipment.
Sales decreased 26 percent in Latin
America primarily due to lower end-user demand,
partially offset by the favorable impact of changes in dealer
inventories. The lower end-user demand resulted primarily
from continued weak construction activity in Brazil. In EAME, sales
declined 12 percent mostly due to the unfavorable impact of
currency, as our sales in euros translated into fewer U.S.
dollars.
Sales decreased in most segments. Construction
Industries' sales decreased 18 percent, primarily due to
lower end-user demand and the unfavorable impact of currency.
Energy & Transportation's sales declined 12
percent as sales decreased across end-user applications and the
impact of currency was unfavorable. Resource
Industries' sales declined 11 percent, primarily due to
lower end-user demand partially offset by the impact of favorable
changes in dealer inventories as dealers reduced inventories more
significantly in the second quarter of 2014 than in the second
quarter of 2015. Financial Products' segment
revenues were down slightly.
Consolidated Operating Profit
Consolidated Operating Profit Comparison
Second Quarter 2015 vs. Second Quarter 2014
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the
downloadable version of Caterpillar 2Q 2014 earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Operating Profit between the second quarter of 2014
(at left) and the second quarter of 2015 (at right). Items
favorably impacting operating profit appear as upward
stair steps with the corresponding dollar amounts above each bar,
while items negatively impacting operating profit appear as
downward stair steps with dollar amounts reflected in parentheses
above each bar. Caterpillar management utilizes these charts
internally to visually communicate with the company's Board of
Directors and employees. The bar entitled Other includes
consolidating adjustments and Machinery, Energy
& Transportation other operating (income) expenses.
Operating profit for the second quarter of 2015 was $1.130 billion, a decline of $345 million from the second quarter of
2014. The decrease was primarily the result of lower sales
volume and a decline in Financial Products' operating profit,
partially offset by improved price realization and the favorable
impact of currency.
Although the stronger U.S. dollar had a negative impact to our
sales, our sizable manufacturing presence outside of the United States resulted in a favorable
impact to operating profit. Over half of the favorability for
the quarter was due to the Japanese yen, as we are a net exporter
from Japan.
Manufacturing costs were about flat as improved
material costs and lower incentive compensation expense were about
offset by the unfavorable impact of cost absorption and variable
manufacturing inefficiencies driven by lower production
volume. The unfavorable cost absorption resulted from a
decrease in inventory in the second quarter of 2015 compared to a
modest increase in the second quarter of 2014.
Selling, general and administrative and research and development
(SG&A and R&D) expenses were about flat as higher spending
for new product introduction and information technology-related
programs was offset by lower incentive compensation expense.
Restructuring costs of $89 million
in the second quarter of 2015 were related to several restructuring
programs across the company. In the second quarter of 2014,
restructuring costs were $114
million, primarily related to a workforce reduction at the
Gosselies, Belgium, facility.
Other Profit/Loss Items
- Other income/expense in the second quarter of 2015 was
expense of $13 million, compared with
income of $65 million in the second
quarter of 2014. The change was primarily due to the unfavorable
net impact from currency translation and hedging gains and losses.
The second quarter of 2015 included net losses related to currency
translation and hedging compared to net gains in the second quarter
of 2014.
- The provision for income taxes for the second quarter of
2015 reflects an estimated annual tax rate of 28.5 percent compared
with 29.5 percent for the second quarter of 2014. The decrease is
primarily due to a more favorable expected geographic mix of
profits from a tax perspective in 2015.
Global Workforce
Caterpillar worldwide, full-time employment was 111,247 at the
end of the second quarter of 2015 compared with 115,292 at the end
of the second quarter of 2014, a decrease of 4,045 full-time
employees. The flexible workforce decreased by 786 for a
total decrease in the global workforce of 4,831. The decrease
was primarily the result of restructuring programs.
|
|
June
30
|
|
|
2015
|
|
2014
|
|
Increase
/
(Decrease)
|
|
Full-time
employment
|
|
111,247
|
|
115,292
|
|
(4,045)
|
|
Flexible
workforce
|
|
15,553
|
|
16,339
|
|
(786)
|
|
Total
|
|
126,800
|
|
131,631
|
|
(4,831)
|
|
|
|
|
|
|
|
|
Summary of
change
|
|
|
|
|
|
|
|
U.S.
workforce
|
|
|
|
|
|
(1,519)
|
|
Non-U.S.
workforce
|
|
|
|
|
|
(3,312)
|
|
Total
|
|
|
|
|
|
(4,831)
|
|
SEGMENT
RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
North
|
|
%
|
|
Latin
|
|
%
|
|
|
|
%
|
|
Asia/
|
|
%
|
|
(Millions of
dollars)
|
Total
|
|
Change
|
|
America
|
|
Change
|
|
America
|
|
Change
|
|
EAME
|
|
Change
|
|
Pacific
|
|
Change
|
|
Second Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$ 4,441
|
|
(18)
|
%
|
|
$ 2,319
|
|
(3)
|
%
|
|
$ 378
|
|
(47)
|
%
|
|
$ 978
|
|
(18)
|
%
|
|
$ 766
|
|
(30)
|
%
|
|
Resource
Industries²
|
1,991
|
|
(11)
|
%
|
|
802
|
|
(7)
|
%
|
|
323
|
|
(6)
|
%
|
|
418
|
|
(20)
|
%
|
|
448
|
|
(12)
|
%
|
|
Energy &
Transportation³
|
4,544
|
|
(12)
|
%
|
|
1,905
|
|
(16)
|
%
|
|
439
|
|
(7)
|
%
|
|
1,340
|
|
(5)
|
%
|
|
860
|
|
(17)
|
%
|
|
All Other
Segments⁴
|
637
|
|
9
|
%
|
|
459
|
|
24
|
%
|
|
48
|
|
(32)
|
%
|
|
75
|
|
(10)
|
%
|
|
55
|
|
(8)
|
%
|
|
Corporate Items and
Eliminations
|
(30)
|
|
|
|
|
(29)
|
|
|
|
|
(1)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
Machinery, Energy
& Transportation
|
$11,583
|
|
(14)
|
%
|
|
$ 5,456
|
|
(7)
|
%
|
|
$ 1,187
|
|
(26)
|
%
|
|
$ 2,811
|
|
(12)
|
%
|
|
$ 2,129
|
|
(22)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$ 785
|
|
(6)
|
%
|
|
$ 456
|
|
2
|
%
|
|
$ 105
|
|
(10)
|
%
|
|
$ 101
|
|
(17)
|
%
|
|
$ 123
|
|
(17)
|
%
|
|
Corporate Items and
Eliminations
|
(51)
|
|
|
|
|
(25)
|
|
|
|
|
(10)
|
|
|
|
|
(6)
|
|
|
|
|
(10)
|
|
|
|
|
Financial
Products Revenues
|
$ 734
|
|
(3)
|
%
|
|
$ 431
|
|
6
|
%
|
|
$ 95
|
|
(9)
|
%
|
|
$ 95
|
|
(16)
|
%
|
|
$ 113
|
|
(16)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$12,317
|
|
(13)
|
%
|
|
$ 5,887
|
|
(6)
|
%
|
|
$ 1,282
|
|
(25)
|
%
|
|
$ 2,906
|
|
(12)
|
%
|
|
$ 2,242
|
|
(21)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$ 5,407
|
|
|
|
|
$ 2,402
|
|
|
|
|
$ 711
|
|
|
|
|
$ 1,192
|
|
|
|
|
$ 1,102
|
|
|
|
|
Resource
Industries²
|
2,241
|
|
|
|
|
866
|
|
|
|
|
342
|
|
|
|
|
523
|
|
|
|
|
510
|
|
|
|
|
Energy &
Transportation³
|
5,175
|
|
|
|
|
2,259
|
|
|
|
|
470
|
|
|
|
|
1,406
|
|
|
|
|
1,040
|
|
|
|
|
All Other
Segments⁴
|
583
|
|
|
|
|
369
|
|
|
|
|
71
|
|
|
|
|
83
|
|
|
|
|
60
|
|
|
|
|
Corporate Items and
Eliminations
|
(15)
|
|
|
|
|
(15)
|
|
|
|
|
1
|
|
|
|
|
(2)
|
|
|
|
|
1
|
|
|
|
|
Machinery, Energy
& Transportation
|
$13,391
|
|
|
|
|
$ 5,881
|
|
|
|
|
$ 1,595
|
|
|
|
|
$ 3,202
|
|
|
|
|
$ 2,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$ 834
|
|
|
|
|
$ 448
|
|
|
|
|
$ 117
|
|
|
|
|
$ 121
|
|
|
|
|
$ 148
|
|
|
|
|
Corporate Items and
Eliminations
|
(75)
|
|
|
|
|
(41)
|
|
|
|
|
(13)
|
|
|
|
|
(8)
|
|
|
|
|
(13)
|
|
|
|
|
Financial
Products Revenues
|
$ 759
|
|
|
|
|
$ 407
|
|
|
|
|
$ 104
|
|
|
|
|
$ 113
|
|
|
|
|
$ 135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$14,150
|
|
|
|
|
$ 6,288
|
|
|
|
|
$ 1,699
|
|
|
|
|
$ 3,315
|
|
|
|
|
$ 2,848
|
|
|
|
|
|
|
1
Does not include inter-segment sales of
$45 million and $56 million in second quarter 2015 and 2014,
respectively.
|
|
2
Does not include inter-segment sales of
$82 million and $111 million in second quarter 2015 and 2014,
respectively.
|
|
3
Does not include inter-segment sales of
$487 million and $586 million in second quarter 2015 and 2014,
respectively.
|
|
4
Does not include
inter-segment sales of $804 million and $890 million in second
quarter 2015 and 2014, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
|
|
Sales
|
|
Price
|
|
|
|
|
|
|
Second
|
|
$
|
|
%
|
|
(Millions of
dollars)
|
Quarter
2014
|
|
Volume
|
|
Realization
|
|
Currency
|
|
|
Other
|
|
Quarter
2015
|
|
Change
|
|
Change
|
|
Construction
Industries
|
$ 5,407
|
|
$ (778)
|
|
$
46
|
|
$ (234)
|
|
|
$ -
|
|
$ 4,441
|
|
$ (966)
|
|
(18)
|
%
|
|
Resource
Industries
|
2,241
|
|
(214)
|
|
11
|
|
(47)
|
|
|
-
|
|
1,991
|
|
(250)
|
|
(11)
|
%
|
|
Energy &
Transportation
|
5,175
|
|
(455)
|
|
22
|
|
(198)
|
|
|
-
|
|
4,544
|
|
(631)
|
|
(12)
|
%
|
|
All Other
Segments
|
583
|
|
61
|
|
5
|
|
(12)
|
|
|
-
|
|
637
|
|
54
|
|
9
|
%
|
|
Corporate Items and
Eliminations
|
(15)
|
|
(14)
|
|
-
|
|
(1)
|
|
|
-
|
|
(30)
|
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery, Energy
& Transportation
|
$ 13,391
|
|
$ (1,400)
|
|
$
84
|
|
$ (492)
|
|
|
$ -
|
|
$ 11,583
|
|
$ (1,808)
|
|
(14)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
834
|
|
-
|
|
-
|
|
-
|
|
|
(49)
|
|
785
|
|
(49)
|
|
(6)
|
%
|
|
Corporate Items and
Eliminations
|
(75)
|
|
-
|
|
-
|
|
-
|
|
|
24
|
|
(51)
|
|
24
|
|
|
|
|
Financial Products
Revenues
|
$
759
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
$ (25)
|
|
$
734
|
|
$ (25)
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$ 14,150
|
|
$ (1,400)
|
|
$
84
|
|
$ (492)
|
|
|
$ (25)
|
|
$ 12,317
|
|
$ (1,833)
|
|
(13)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
by Segment
|
|
|
|
|
|
|
|
|
|
Second
|
|
Second
|
|
$
|
|
%
|
|
(Millions of
dollars)
|
Quarter
2015
|
|
Quarter
2014
|
|
Change
|
|
Change
|
|
Construction
Industries
|
$
587
|
|
$
674
|
|
$
(87)
|
|
(13)
|
%
|
|
Resource
Industries
|
-
|
|
114
|
|
(114)
|
|
(100)
|
%
|
|
Energy &
Transportation
|
906
|
|
1,028
|
|
(122)
|
|
(12)
|
%
|
|
All Other
Segments
|
217
|
|
223
|
|
(6)
|
|
(3)
|
%
|
|
Corporate Items and
Eliminations
|
(696)
|
|
(722)
|
|
26
|
|
|
|
|
Machinery, Energy
& Transportation
|
$
1,014
|
|
$
1,317
|
|
$
(303)
|
|
(23)
|
%
|
|
Financial Products
Segment
|
184
|
|
244
|
|
(60)
|
|
(25)
|
%
|
|
Corporate Items and
Eliminations
|
(1)
|
|
(12)
|
|
11
|
|
|
|
|
Financial
Products
|
$
183
|
|
$
232
|
|
$
(49)
|
|
(21)
|
%
|
|
Consolidating
Adjustments
|
(67)
|
|
(74)
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit
|
$
1,130
|
|
$
1,475
|
|
$
(345)
|
|
(23)
|
%
|
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2014
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Second Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$5,407
|
|
($778)
|
|
$46
|
|
($234)
|
|
$4,441
|
|
($966)
|
|
(18)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
North
America
|
$2,319
|
|
$2,402
|
|
($83)
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
Latin
America
|
378
|
|
711
|
|
(333)
|
|
(47)
|
%
|
|
|
|
|
|
|
|
|
EAME
|
978
|
|
1,192
|
|
(214)
|
|
(18)
|
%
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
766
|
|
1,102
|
|
(336)
|
|
(30)
|
%
|
|
|
|
|
|
|
|
|
Total1
|
$4,441
|
|
$5,407
|
|
($966)
|
|
(18)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
$587
|
|
$674
|
|
($87)
|
|
(13)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $45 million and $56 million in second
quarter 2015 and 2014, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Industries' sales were $4.441 billion in the second quarter of 2015, a
decrease of $966 million, or 18
percent, from the second quarter of 2014. The decrease in
sales was primarily due to lower end-user demand and the
unfavorable impact of currency, primarily from the euro and the
Japanese yen, slightly offset by improved price realization.
While sales declined for both new equipment and aftermarket parts,
the decline for new equipment was more significant.
- Sales volume declined primarily due to lower deliveries to end
users.
- Price realization improved with about half of the impact due to
the absence of a large government order in Brazil.
Sales decreased in all regions.
- In Asia/Pacific, the sales
decline was primarily due to lower sales in China and Japan. In China, the lower sales resulted primarily from
continued weak residential construction activity. In Japan, the weaker yen contributed to the
decline as sales in yen translated into fewer U.S. dollars.
- Decreases in Latin America
were primarily due to continued weak construction activity and the
absence of a large government order in Brazil that occurred during the second quarter
of 2014.
- Sales declined in EAME primarily due to the unfavorable impact
of currency, as sales in euros translated into fewer U.S. dollars.
In addition, the impact of changes in dealer inventories was
unfavorable as dealers increased inventories more significantly in
second quarter of 2014 than in the second quarter of 2015.
- Sales declined slightly in North
America as weakness in oil and gas-related construction was
largely offset by stronger activity in residential and
nonresidential building construction.
Construction Industries' profit was $587
million in the second quarter of 2015, compared with
$674 million in the second quarter of
2014. The decrease in profit was primarily due to lower sales
volume. The decline was partially offset by the favorable
impact of currency, primarily from the Japanese yen, as
Construction Industries is a net exporter from Japan, in addition to improved price
realization and lower incentive compensation expense.
|
RESOURCE
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2014
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Second Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$2,241
|
|
($214)
|
|
$11
|
|
($47)
|
|
|
$1,991
|
|
($250)
|
|
(11)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$802
|
|
$866
|
|
($64)
|
|
(7)
|
%
|
|
|
|
Latin
America
|
323
|
|
342
|
|
(19)
|
|
(6)
|
%
|
|
|
|
EAME
|
418
|
|
523
|
|
(105)
|
|
(20)
|
%
|
|
|
|
Asia/Pacific
|
448
|
|
510
|
|
(62)
|
|
(12)
|
%
|
|
|
|
Total1
|
$1,991
|
|
$2,241
|
|
($250)
|
|
(11)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
$ -
|
|
$114
|
|
($114)
|
|
(100)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $82 million and $111 million in second
quarter 2015 and 2014, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource Industries' sales were $1.991 billion in the second quarter of 2015, a
decrease of $250 million, or 11
percent, from the second quarter of 2014. The decline was
primarily due to lower sales volume and the unfavorable impact of
currency, about half due to the euro. Sales were lower for
both new equipment and aftermarket parts. We believe some
companies are continuing to delay maintenance and rebuild
activities.
The sales decrease was primarily the result of lower end-user
demand in Latin America,
Asia/Pacific and North
America. The decline in these regions was partially offset by
the favorable impact of changes in dealer inventories, as dealers
reduced inventory more significantly in the second quarter of 2014
than in the second quarter of 2015. In North America, lower
sales of mining equipment were partially offset by increases in
sales of equipment used to support the quarry and aggregate
industry. In EAME, the sales decrease was primarily the
result of unfavorable changes in dealer inventories. End-user
demand in EAME was about flat.
Commodity prices remained weak, and mining customers continued
to focus on improving productivity in existing mines and reducing
their total capital expenditures, as they have for the last several
quarters. As a result, sales and new orders in Resource
Industries continued to be weak.
Resource Industries' profit was break even in the second quarter
of 2015, compared with profit of $114
million in the second quarter of 2014. The decrease
was primarily the result of lower sales volume. Manufacturing
costs were unfavorable due to the impact of cost absorption
partially offset by lower material costs. SG&A and
R&D expenses were about flat as higher spending for new product
introductions was about offset by lower incentive compensation
expense.
|
ENERGY &
TRANSPORTATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2014
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Second Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$5,175
|
|
($455)
|
|
$22
|
|
($198)
|
|
|
$4,544
|
|
($631)
|
|
(12)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
North
America
|
$1,905
|
|
$2,259
|
|
($354)
|
|
(16)
|
%
|
|
|
|
|
Latin
America
|
439
|
|
470
|
|
(31)
|
|
(7)
|
%
|
|
|
|
|
EAME
|
1,340
|
|
1,406
|
|
(66)
|
|
(5)
|
%
|
|
|
|
|
Asia/Pacific
|
860
|
|
1,040
|
|
(180)
|
|
(17)
|
%
|
|
|
|
|
Total1
|
$4,544
|
|
$5,175
|
|
($631)
|
|
(12)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
$906
|
|
$1,028
|
|
($122)
|
|
(12)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $487 million and $586 million in second
quarter 2015 and 2014, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's sales were $4.544 billion in the second quarter of 2015, a
decrease of $631 million, or 12
percent, from the second quarter of 2014. The decrease was
primarily the result of lower sales volume and the unfavorable
impact of currency, mostly from the euro. Sales decreased in
all applications.
- Transportation – Sales decreased in North America and were about flat in all other
geographic regions. In North
America, sales weakened primarily due to the absence of a
Tier IV locomotive offering.
- Oil and Gas – Sales decreased in Asia/Pacific and North America and were about flat in other
regions. Lower sales in Asia/Pacific and North America were primarily due to lower
end-user demand for equipment used in drilling and well servicing
applications, as well as the timing of large projects. In addition,
changes in dealer inventories were unfavorable to sales as dealers
increased inventories in the second quarter of 2014 and decreased
inventories in the second quarter of 2015.
- Industrial – Sales were lower in all regions except
Latin America, where they were
about flat. In Asia/Pacific and
North America the decline in sales
was primarily due to lower demand for engines used by original
equipment manufacturers for most industrial applications. Lower
sales in EAME were primarily a result of the unfavorable impact of
currency.
- Power Generation – Sales decreased primarily due to the
negative impact of currency on sales in EAME and weak economic
conditions in Latin America. Sales
in North America and Asia/Pacific were about flat.
Energy & Transportation's profit was $906 million in the second quarter of 2015,
compared with $1.028 billion in the
second quarter of 2014. The decrease was primarily due to
lower sales volume, which includes a favorable mix of products,
partially offset by lower incentive compensation expense.
Manufacturing costs, excluding incentive compensation expense, were
about flat as lower material costs were about offset by the
unfavorable impact of cost absorption.
|
FINANCIAL PRODUCTS
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
|
|
|
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
|
North
America
|
$456
|
|
$448
|
|
$8
|
|
2
|
%
|
|
Latin
America
|
105
|
|
117
|
|
(12)
|
|
(10)
|
%
|
|
EAME
|
101
|
|
121
|
|
(20)
|
|
(17)
|
%
|
|
Asia/Pacific
|
123
|
|
148
|
|
(25)
|
|
(17)
|
%
|
|
Total
|
$785
|
|
$834
|
|
($49)
|
|
(6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2015
|
|
Second Quarter
2014
|
|
$
Change
|
|
%
Change
|
|
|
Operating
Profit
|
$184
|
|
$244
|
|
($60)
|
|
(25)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products' revenues were $785
million in the second quarter of 2015, a decrease of
$49 million, or 6 percent, from the
second quarter of 2014. The decline was mostly due to lower
average earning assets in Asia/Pacific, EAME and Latin America, partially offset by higher
average earning assets in North
America and lower average financing rates primarily in
North America and EAME.
Financial Products' profit was $184
million in the second quarter of 2015, compared with
$244 million in the second quarter of
2014. The unfavorable change was primarily due to a
$25 million decrease in net yield on
average earning assets, a $14 million
unfavorable impact from lower average earning assets and a
$14 million increase in the provision
for credit losses at Cat Financial.
At the end of the second quarter of 2015, past dues at Cat
Financial were 2.97 percent, compared with 2.63 percent at the end
of the second quarter of 2014. The increase was primarily due
to higher delinquencies in the Latin
America and mining portfolios. At the end of 2014,
past dues were 2.17 percent. Write-offs, net of recoveries,
were $38 million for the second
quarter of 2015, compared with $19
million for the second quarter of 2014.
As of June 30, 2015, Cat
Financial's allowance for credit losses totaled $405 million, or 1.42 percent of net finance
receivables, compared with $387
million or 1.27 percent of net finance receivables at
June 30, 2014. The allowance
for credit losses as of year-end 2014 was $401 million, or 1.36 percent of net finance
receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $697 million in the second quarter of 2015, a
decrease of $37 million from the
second quarter of 2014. Corporate items and eliminations
include: corporate-level expenses; restructuring costs; timing
differences, as some expenses are reported in segment profit on a
cash basis; retirement benefit costs other than service cost;
currency differences for ME&T, as segment profit is reported
using annual fixed exchange rates, and inter-segment
eliminations.
The decrease in expense from the second quarter of 2014 was
primarily due to the timing of stock-based compensation expense and
declines in both restructuring costs and incentive compensation
expense, partially offset by higher spending for information
technology-related programs.
2015 Outlook
Overall, our view of world economic growth in 2015 is about the
same as we expected in the outlook provided with our 2014 year-end
financial release in January of 2015. We now expect world GDP
growth in 2015 of about 2.5 percent, about the same as 2014.
We expect growth in developed countries to improve slightly
and economies in developing countries to grow at a rate moderately
below their growth rate in 2014.
There are still significant risks and uncertainties that could
temper growth. Political conflicts and social unrest continue
to disrupt economic activity in several regions; in particular, the
Commonwealth of Independent States, Africa and the Middle East. The
unresolved economic uncertainty in Greece is also a cause for concern. The
Chinese government's push for structural reforms is slowing growth,
and the ongoing uncertainty around the direction and timing of U.S.
fiscal and monetary policy actions may temper business
confidence.
The outlook for sales and revenues has been lowered from about
$50 billion to about $49 billion for 2015, down from $55.2 billion in 2014. The primary reason
for the decrease from our initial outlook provided in January is
due to the currency translation impact of a stronger U.S. dollar on
our sales outside the United States.
While the outlook for sales and revenues is down slightly, our
expectation for profit has not changed. We continue to expect
that 2015 profit per share will be $4.70, or $5.00 per
share excluding restructuring costs. The expectation for 2015
restructuring costs remains at about $250
million. Profit per share in 2014 was $5.88, or $6.38
excluding restructuring costs.
|
QUESTIONS AND
ANSWERS
|
|
|
Q1:
|
With the year half
over, how is the macro-economic environment impacting the
industries you serve and how does it compare with your expectations
at the beginning of 2015?
|
|
|
|
A:
|
Overall, our view of
the world has not changed much since our original outlook in
January of 2015. Our expectations for world economic growth for the
year are similar to what we expected in January. As we expected,
mining continues to be severely depressed, construction-related
sales in China and Brazil are substantially lower than 2014 and
orders related to oil and gas are down significantly which will
likely lead to lower sales in the second half of 2015.
|
|
|
|
Q2:
|
Has the recent
situation in Greece had significant impact on your
business?
|
|
|
|
A:
|
Greece is not
significant to Caterpillar's financial results. It appears there
has been a short-term resolution to the situation and hopefully
Greece can now turn its attention to growth.
|
|
|
|
Q3:
|
Can you discuss
changes in dealer inventories in the second quarter of 2015? What
are your expectations for the full year of 2015?
|
|
|
|
A:
|
Dealer machine and
engine inventories decreased about $300 million in the second
quarter of 2015 and about $500 million in the second quarter of
2014.
|
|
|
|
During the first six
months of 2015, dealer machine and engine inventories increased
about $600 million. We expect dealers will reduce inventories
during the remainder of 2015, resulting in lower year-end
inventories in 2015 compared to 2014.
|
|
|
|
Q4:
|
Can you comment on
your expectations for Caterpillar inventory for the remainder of
2015?
|
|
|
|
A:
|
Our inventory
decreased in the second quarter, and we expect additional declines
during the remainder of 2015 as a result of our continued focus on
operational improvements and slightly lower sales.
|
|
|
|
Q5:
|
Can you discuss
how lower oil prices have impacted your second-quarter sales and
your expectations for the remainder of 2015?
|
|
|
|
A:
|
Some decline in sales
related to oil occurred in the second quarter, primarily in well
servicing and drilling with some impact to machinery for oil and
gas-related construction. Order rates began to decline in the
second half of 2014 and have continued into 2015. We expect a more
significant decline in oil-related sales during the second half of
2015 as the order backlog declines.
|
|
|
|
Q6:
|
Can you comment on
your order backlog by segment?
|
|
|
|
A:
|
At the end of the
second quarter of 2015, the order backlog was $14.8 billion. This
represents about a $1.7 billion reduction from the end of the first
quarter of 2015. About half of the decrease was in Construction
Industries. In addition, the order backlog for both Energy &
Transportation and Resource Industries declined.
|
|
|
|
Q7:
|
Can you comment on
expense related to your short-term incentive compensation
plans?
|
|
|
|
A:
|
Short-term incentive
compensation expense is directly related to financial and
operational performance measured against targets set annually. The
second-quarter expense related to 2015 was about $200 million, and
we expect the full year will be about $830 million. Short-term
incentive compensation in the second quarter of 2014 was about $360
million, and full-year 2014 was about $1.3 billion.
|
|
|
|
Q8:
|
Can you comment on
your balance sheet and ME&T operating cash flow in the second
quarter of 2015?
|
|
|
|
A:
|
ME&T operating
cash flow for the second quarter of 2015 was $1.638 billion,
compared with $2.064 billion in the second quarter of 2014. The
decline was primarily due to lower profit. The top cash
deployment priority is to maintain a strong financial position to
support our credit rating. As such, the ME&T debt-to-capital
ratio was 35.8 percent, improved from 37.4 percent at the end of
2014. Our cash and liquidity positions also remain strong with an
enterprise cash balance of $7.821 billion as of June 30, 2015.
Additionally, cash will be used to support growth, appropriately
fund employee benefit plans, pay dividends and repurchase common
stock. During the second quarter, capital expenditures totaled $0.3
billion and the quarterly dividend payment was $0.4 billion. We
further demonstrated our commitment to deliver superior returns to
stockholders through the business cycles with the announcement to
increase the quarterly cash dividend by 10 percent to $0.77 per
share of common stock. Through dividends and the repurchase of
approximately $0.5 billion of common stock, we returned a total of
about $1.4 billion to stockholders in the first half of
2015.
|
|
|
|
Q9:
|
Can you provide an
update on your cash deployment and stock repurchase plans for
2015?
|
|
|
|
A:
|
In the first quarter
of 2014, the Board of Directors approved a $10.0 billion
authorization, which expires in December 2018. At the end of the
second quarter of 2015, we had $7.0 billion remaining in the
authorization. Our strong balance sheet and cash position provide
us the ability to repurchase additional stock, and we intend to
repurchase $1.5 billion of common stock during the third quarter of
2015.
|
|
|
|
Caterpillar's cash
deployment priorities for uses of cash have not changed. Higher
cash deployment priorities will be funded first, and stock
repurchase remains the last priority. Stock repurchase plans are
always subject to the company's cash deployment priorities and can
change based on business and market conditions.
|
|
|
|
Q10:
|
Over the last six
months there have been several Caterpillar public releases related
to "micro-grids," "internet of things," "peer-to-peer rental" and
even the formation of a new Analytics and Innovation Division. Is
this a change in direction or strategy?
|
|
|
|
A:
|
While not a change in
our strategy, we are accelerating our focus on emerging
technologies. We intend to embrace these technologies to better
execute our strategy and help our customers succeed. This year, we
also established an Analytics and Innovation Division. The division
will leverage the combined efforts of the company's various
technology areas, while pushing for more innovation and change
management. By focusing internally as well as partnering with and
investing in other companies, we are continuing to challenge
ourselves to better position the company for the future.
|
|
GLOSSARY OF
TERMS
|
|
|
1.
|
Across the
Table – A joint initiative with Caterpillar and its
dealers to identify, build and strengthen capabilities necessary to
meet the diverse and changing needs of our customers. The focus is
on leveraging demonstrated best practices to improve performance on
delivering an exceptional customer experience.
|
|
2.
|
All Other
Segments – Primarily includes activities such as: the
remanufacturing of Cat® engines and components and remanufacturing
services for other companies as well as the business strategy,
product management, development, manufacturing, marketing and
product support of undercarriage, specialty products, hardened bar
stock components and ground engaging tools primarily for Cat
products, paving products, forestry products and industrial and
waste products; the product management, development, marketing,
sales and product support of on-highway vocational trucks for North
America; parts distribution; distribution services responsible for
dealer development and administration including a wholly owned
dealer in Japan, dealer portfolio management and ensuring the most
efficient and effective distribution of machines, engines and
parts.
|
|
3.
|
Consolidating
Adjustments – Elimination of transactions between Machinery,
Energy & Transportation and Financial Products.
|
|
4.
|
Construction
Industries – A segment primarily responsible for supporting
customers using machinery in infrastructure and building
construction applications. Responsibilities include business
strategy, product design, product management and development,
manufacturing, marketing and sales and product support. The
product portfolio includes backhoe loaders, small wheel loaders,
small track-type tractors, skid steer loaders, multi-terrain
loaders, mini excavators, compact wheel loaders, telehandlers,
select work tools, small, medium and large track excavators, wheel
excavators, medium wheel loaders, compact track loaders, medium
track-type tractors, track-type loaders, motor graders, pipelayers
and mid-tier soil compactors. In addition, Construction
Industries has responsibility for an integrated manufacturing cost
center.
|
|
5.
|
Currency –
With respect to sales and revenues, currency represents the
translation impact on sales resulting from changes in foreign
currency exchange rates versus the U.S. dollar. With respect
to operating profit, currency represents the net translation impact
on sales and operating costs resulting from changes in foreign
currency exchange rates versus the U.S. dollar. Currency
includes the impact on sales and operating profit for the
Machinery, Energy & Transportation lines of business only;
currency impacts on Financial Products' revenues and operating
profit are included in the Financial Products' portions of the
respective analyses. With respect to other income/expense,
currency represents the effects of forward and option contracts
entered into by the company to reduce the risk of fluctuations in
exchange rates (hedging) and the net effect of changes in foreign
currency exchange rates on our foreign currency assets and
liabilities for consolidated results (translation).
|
|
6.
|
Debt-to-Capital
Ratio – A key measure of Machinery, Energy &
Transportation's financial strength used by both management and our
credit rating agencies. The metric is defined as Machinery,
Energy & Transportation's short-term borrowings, long-term debt
due within one year and long-term debt due after one year (debt)
divided by the sum of Machinery, Energy & Transportation's debt
and stockholders' equity. Debt also includes Machinery,
Energy & Transportation's borrowings from Financial
Products.
|
|
7.
|
EAME – A
geographic region including Europe, Africa, the Middle East and the
Commonwealth of Independent States (CIS).
|
|
8.
|
Earning Assets
– Assets consisting primarily of total finance receivables net of
unearned income, plus equipment on operating leases, less
accumulated depreciation at Cat Financial.
|
|
9.
|
Energy &
Transportation (formerly Power Systems) – A segment primarily
responsible for supporting customers using reciprocating engines,
turbines, diesel-electric locomotives and related parts across
industries serving power generation, industrial, oil and gas and
transportation applications, including marine and rail-related
businesses. Responsibilities include business strategy,
product design, product management, development, manufacturing,
marketing, sales and product support of turbines and
turbine-related services, reciprocating engine powered generator
sets, integrated systems used in the electric power generation
industry, reciprocating engines and integrated systems and
solutions for the marine and oil and gas industries; reciprocating
engines supplied to the industrial industry as well as Cat
machinery; the business strategy, product design, product
management, development, manufacturing, remanufacturing, leasing
and service of diesel-electric locomotives and components and other
rail-related products and services.
|
|
10.
|
Financial Products
Segment – Provides financing to customers and dealers for
the purchase and lease of Cat and other equipment, as well as some
financing for Caterpillar sales to dealers. Financing plans
include operating and finance leases, installment sale contracts,
working capital loans and wholesale financing plans. The
segment also provides various forms of insurance to customers and
dealers to help support the purchase and lease of our
equipment. Financial Products Segment profit is determined on
a pretax basis and includes other income/expense items.
|
|
11.
|
Latin America
– A geographic region including Central and South American
countries and Mexico.
|
|
12.
|
Lean
Management – A holistic management system that uses a
sequential cadence of principles to drive the highest quality and
lowest total cost to achieve customer
requirements.
|
|
13.
|
Machinery, Energy
& Transportation (ME&T) – Represents the aggregate
total of Construction Industries, Resource Industries, Energy &
Transportation and All Other Segments and related corporate items
and eliminations.
|
|
14.
|
Machinery, Energy
& Transportation Other Operating (Income) Expenses
– Comprised primarily of gains/losses on disposal of
long-lived assets, gains/losses on divestitures, long-lived asset
impairment charges and legal settlements. Restructuring
costs, which are classified as other operating expenses on the
Results of Operations, are presented separately on the Operating
Profit Comparison.
|
|
15.
|
Manufacturing
Costs – Manufacturing costs exclude the impacts of currency and
represent the volume-adjusted change for variable costs and the
absolute dollar change for period manufacturing costs.
Variable manufacturing costs are defined as having a direct
relationship with the volume of production. This includes
material costs, direct labor and other costs that vary directly
with production volume such as freight, power to operate machines
and supplies that are consumed in the manufacturing process.
Period manufacturing costs support production but are defined as
generally not having a direct relationship to short-term changes in
volume. Examples include machinery and equipment repair,
depreciation on manufacturing assets, facility support,
procurement, factory scheduling, manufacturing planning and
operations management.
|
|
16.
|
Price
Realization – The impact of net price changes excluding
currency and new product introductions. Price realization
includes the impact of changes in the relative weighting of sales
between geographic regions.
|
|
17.
|
Resource
Industries – A segment primarily responsible for supporting
customers using machinery in mining and quarrying
applications. Responsibilities include business strategy,
product design, product management and development, manufacturing,
marketing and sales and product support. The product
portfolio includes large track-type tractors, large mining trucks,
hard rock vehicles, longwall miners, electric rope shovels,
draglines, hydraulic shovels, drills, highwall miners, large wheel
loaders, off-highway trucks, articulated trucks, wheel tractor
scrapers, wheel dozers, select work tools, machinery components and
electronics and control systems. Resource Industries also
manages areas that provide services to other parts of the company,
including integrated manufacturing and research and
development. In addition, segment profit includes the impact
from divestiture of portions of the Bucyrus distribution
business.
|
|
18.
|
Restructuring
Costs – Primarily costs for employee separation costs and
long-lived asset impairments.
|
|
19.
|
Sales Volume –
With respect to sales and revenues, sales volume represents the
impact of changes in the quantities sold for Machinery, Energy
& Transportation as well as the incremental revenue impact of
new product introductions, including emissions-related product
updates. With respect to operating profit, sales volume
represents the impact of changes in the quantities sold for
Machinery, Energy & Transportation combined with product mix as
well as the net operating profit impact of new product
introductions, including emissions-related product updates.
Product mix represents the net operating profit impact of changes
in the relative weighting of Machinery, Energy & Transportation
sales with respect to total sales.
|
NON-GAAP FINANCIAL MEASURES
The following definition is provided for "non-GAAP financial
measures" in connection with Regulation G issued by the Securities
and Exchange Commission. This non-GAAP financial measure has
no standardized meaning prescribed by U.S. GAAP and therefore is
unlikely to be comparable to the calculation of similar measures
for other companies. Management does not intend this item to
be considered in isolation or substituted for the related GAAP
measure.
Profit Per Share Excluding Restructuring Costs
We incurred restructuring costs in 2014 and in the first and
second quarters of 2015 and expect to incur additional
restructuring costs in the second half of 2015. We believe it
is important to separately quantify the profit per share impact of
restructuring costs in order for our second-quarter 2015 results
and the 2015 outlook to be meaningful to our readers. We have
also provided 2014 profit per share excluding restructuring costs
comparable to the 2015 presentation. Reconciliation of profit
per share excluding restructuring costs to the most directly
comparable GAAP measure, profit per share, is as follows:
|
|
Second
Quarter
|
|
Full
Year
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
Outlook
|
|
Profit per
share
|
|
$
1.57
|
|
$
1.16
|
|
$
5.88
|
|
$
4.70
|
|
Per share
restructuring costs
|
|
$
0.12
|
|
$
0.11
|
|
$
0.50
|
|
$
0.30
|
|
Profit per share
excluding restructuring costs
|
|
$
1.69
|
|
$
1.27
|
|
$
6.38
|
|
$
5.00
|
|
|
|
|
|
|
|
|
|
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 our
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.
We also believe this presentation will assist readers in
understanding our business. Pages 20-28 reconcile Machinery,
Energy & Transportation with Financial Products on the equity
basis to Caterpillar Inc. consolidated financial information.
Caterpillar's latest financial results and outlook are also
available via:
|
Telephone:
|
|
800-228-7717 (Inside
the United States and Canada)
|
|
858-764-9492 (Outside
the United States and Canada)
|
|
Internet:
|
|
http://www.caterpillar.com/en/investors.html
|
|
http://www.caterpillar.com/en/investors/quarterly-results.html
(live broadcast/replays of quarterly conference call)
|
Caterpillar contact: Rachel
Potts, 309-675-6892 (Office), 309-573-3444 (Mobile) or
Potts_Rachel_A@cat.com
Caterpillar
Inc.
Condensed
Consolidated Statement of Results of
Operations
(Unaudited)
(Dollars in millions except per share data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
11,583
|
|
|
|
$
|
13,391
|
|
|
|
$
|
23,544
|
|
|
|
$
|
25,884
|
|
|
|
Revenues of Financial
Products
|
|
734
|
|
|
|
|
759
|
|
|
|
|
1,475
|
|
|
|
|
1,507
|
|
|
|
Total sales and
revenues
|
|
12,317
|
|
|
|
|
14,150
|
|
|
|
|
25,019
|
|
|
|
|
27,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,762
|
|
|
|
|
10,197
|
|
|
|
|
17,605
|
|
|
|
|
19,634
|
|
|
|
Selling, general and
administrative expenses
|
|
1,389
|
|
|
|
|
1,437
|
|
|
|
|
2,707
|
|
|
|
|
2,729
|
|
|
|
Research and
development expenses
|
|
532
|
|
|
|
|
516
|
|
|
|
|
1,078
|
|
|
|
|
1,024
|
|
|
|
Interest expense of
Financial Products
|
|
148
|
|
|
|
|
153
|
|
|
|
|
298
|
|
|
|
|
313
|
|
|
|
Other operating
(income) expenses
|
|
356
|
|
|
|
|
372
|
|
|
|
|
674
|
|
|
|
|
818
|
|
|
|
Total operating
costs
|
|
11,187
|
|
|
|
|
12,675
|
|
|
|
|
22,362
|
|
|
|
|
24,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,130
|
|
|
|
|
1,475
|
|
|
|
|
2,657
|
|
|
|
|
2,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
125
|
|
|
|
|
120
|
|
|
|
|
254
|
|
|
|
|
230
|
|
|
|
Other income
(expense)
|
|
(13)
|
|
|
|
|
65
|
|
|
|
|
144
|
|
|
|
|
119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
992
|
|
|
|
|
1,420
|
|
|
|
|
2,547
|
|
|
|
|
2,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
283
|
|
|
|
|
419
|
|
|
|
|
726
|
|
|
|
|
837
|
|
|
|
Profit of
consolidated companies
|
|
709
|
|
|
|
|
1,001
|
|
|
|
|
1,821
|
|
|
|
|
1,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
2
|
|
|
|
|
1
|
|
|
|
|
4
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
711
|
|
|
|
|
1,002
|
|
|
|
|
1,825
|
|
|
|
|
1,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
1
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
1
|
$
|
710
|
|
|
|
$
|
999
|
|
|
|
$
|
1,821
|
|
|
|
$
|
1,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share
|
$
|
1.18
|
|
|
|
$
|
1.60
|
|
|
|
$
|
3.01
|
|
|
|
$
|
3.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share – diluted 2
|
$
|
1.16
|
|
|
|
$
|
1.57
|
|
|
|
$
|
2.98
|
|
|
|
$
|
3.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares
outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
603.2
|
|
|
|
|
626.3
|
|
|
|
|
604.1
|
|
|
|
|
626.8
|
|
|
|
- Diluted 2
|
|
610.7
|
|
|
|
|
638.3
|
|
|
|
|
611.8
|
|
|
|
|
639.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
1.47
|
|
|
|
$
|
1.30
|
|
|
|
$
|
1.47
|
|
|
|
$
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit attributable
to common stockholders.
|
|
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)
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
7,821
|
|
|
|
$
|
7,341
|
|
|
|
|
Receivables - trade
and other
|
|
7,212
|
|
|
|
|
7,737
|
|
|
|
|
Receivables -
finance
|
|
9,213
|
|
|
|
|
9,027
|
|
|
|
|
Deferred and
refundable income taxes
|
|
1,441
|
|
|
|
|
1,739
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
859
|
|
|
|
|
818
|
|
|
|
|
Inventories
|
|
11,681
|
|
|
|
|
12,205
|
|
|
|
Total current
assets
|
|
38,227
|
|
|
|
|
38,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
16,136
|
|
|
|
|
16,577
|
|
|
|
Long-term receivables
- trade and other
|
|
1,290
|
|
|
|
|
1,364
|
|
|
|
Long-term receivables
- finance
|
|
13,698
|
|
|
|
|
14,644
|
|
|
|
Investments in
unconsolidated affiliated companies
|
|
229
|
|
|
|
|
257
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
1,473
|
|
|
|
|
1,404
|
|
|
|
Intangible
assets
|
|
2,863
|
|
|
|
|
3,076
|
|
|
|
Goodwill
|
|
6,550
|
|
|
|
|
6,694
|
|
|
|
Other
assets
|
|
1,776
|
|
|
|
|
1,798
|
|
|
|
Total
assets
|
$
|
82,242
|
|
|
|
$
|
84,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
14
|
|
|
|
$
|
9
|
|
|
|
|
|
-- Financial
Products
|
|
6,226
|
|
|
|
|
4,699
|
|
|
|
|
Accounts
payable
|
|
5,862
|
|
|
|
|
6,515
|
|
|
|
|
Accrued
expenses
|
|
3,311
|
|
|
|
|
3,548
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
1,597
|
|
|
|
|
2,438
|
|
|
|
|
Customer
advances
|
|
1,754
|
|
|
|
|
1,697
|
|
|
|
|
Dividends
payable
|
|
463
|
|
|
|
|
424
|
|
|
|
|
Other current
liabilities
|
|
1,744
|
|
|
|
|
1,754
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
12
|
|
|
|
|
510
|
|
|
|
|
|
-- Financial
Products
|
|
4,623
|
|
|
|
|
6,283
|
|
|
|
Total current
liabilities
|
|
25,606
|
|
|
|
|
27,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
9,497
|
|
|
|
|
9,493
|
|
|
|
|
|
-- Financial
Products
|
|
17,948
|
|
|
|
|
18,291
|
|
|
|
Liability for
postemployment benefits
|
|
8,759
|
|
|
|
|
8,963
|
|
|
|
Other
liabilities
|
|
3,271
|
|
|
|
|
3,231
|
|
|
|
Total
liabilities
|
|
65,081
|
|
|
|
|
67,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,142
|
|
|
|
|
5,016
|
|
|
|
Treasury
stock
|
|
(16,144)
|
|
|
|
|
(15,726)
|
|
|
|
Profit employed in
the business
|
|
34,823
|
|
|
|
|
33,887
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(6,729)
|
|
|
|
|
(6,431)
|
|
|
|
Noncontrolling
interests
|
|
69
|
|
|
|
|
80
|
|
|
|
Total
stockholders' equity
|
|
17,161
|
|
|
|
|
16,826
|
|
|
|
Total liabilities
and stockholders' equity
|
$
|
82,242
|
|
|
|
$
|
84,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
|
|
Six Months
Ended
|
|
June
30,
|
|
2015
|
|
2014
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
1,825
|
|
|
|
$
|
1,927
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,514
|
|
|
|
|
1,570
|
|
|
|
|
Other
|
|
120
|
|
|
|
|
240
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
383
|
|
|
|
|
251
|
|
|
|
|
Inventories
|
|
332
|
|
|
|
|
(439)
|
|
|
|
|
Accounts
payable
|
|
(326)
|
|
|
|
|
438
|
|
|
|
|
Accrued
expenses
|
|
(71)
|
|
|
|
|
7
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(801)
|
|
|
|
|
283
|
|
|
|
|
Customer
advances
|
|
98
|
|
|
|
|
(14)
|
|
|
|
|
Other assets –
net
|
|
85
|
|
|
|
|
(105)
|
|
|
|
|
Other liabilities –
net
|
|
199
|
|
|
|
|
(24)
|
|
|
|
Net cash provided by
(used for) operating activities
|
|
3,358
|
|
|
|
|
4,134
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(656)
|
|
|
|
|
(710)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(815)
|
|
|
|
|
(825)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
367
|
|
|
|
|
442
|
|
|
|
Additions to finance
receivables
|
|
(4,577)
|
|
|
|
|
(5,760)
|
|
|
|
Collections of
finance receivables
|
|
4,477
|
|
|
|
|
4,719
|
|
|
|
Proceeds from sale of
finance receivables
|
|
74
|
|
|
|
|
104
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(63)
|
|
|
|
|
(15)
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
168
|
|
|
|
|
139
|
|
|
|
Proceeds from sale of
securities
|
|
128
|
|
|
|
|
222
|
|
|
|
Investments in
securities
|
|
(119)
|
|
|
|
|
(673)
|
|
|
|
Other –
net
|
|
(75)
|
|
|
|
|
(25)
|
|
|
|
Net cash provided by
(used for) investing activities
|
|
(1,091)
|
|
|
|
|
(2,382)
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(846)
|
|
|
|
|
(757)
|
|
|
|
Distribution to
noncontrolling interests
|
|
(7)
|
|
|
|
|
(7)
|
|
|
|
Contribution from
noncontrolling interests
|
|
—
|
|
|
|
|
2
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
33
|
|
|
|
|
194
|
|
|
|
Treasury shares
purchased
|
|
(525)
|
|
|
|
|
(1,738)
|
|
|
|
Excess tax benefit
from stock-based compensation
|
|
18
|
|
|
|
|
131
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
3,691
|
|
|
|
|
6,951
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(6,089)
|
|
|
|
|
(6,344)
|
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
1,972
|
|
|
|
|
1,749
|
|
|
|
Net cash provided by
(used for) financing activities
|
|
(1,753)
|
|
|
|
|
181
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(34)
|
|
|
|
|
(87)
|
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
480
|
|
|
|
|
1,846
|
|
|
|
Cash and short-term
investments at beginning of period
|
|
7,341
|
|
|
|
|
6,081
|
|
|
|
Cash and short-term
investments at end of period
|
$
|
7,821
|
|
|
|
$
|
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 June 30, 2015
(Unaudited)
(Millions of dollars)
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
11,583
|
|
|
|
$
|
11,583
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
734
|
|
|
|
|
—
|
|
|
|
|
805
|
|
|
|
|
(71)
|
2
|
|
Total sales and
revenues
|
|
12,317
|
|
|
|
|
11,583
|
|
|
|
|
805
|
|
|
|
|
(71)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,762
|
|
|
|
|
8,763
|
|
|
|
|
—
|
|
|
|
|
(1)
|
3
|
|
Selling, general and
administrative expenses
|
|
1,389
|
|
|
|
|
1,211
|
|
|
|
|
172
|
|
|
|
|
6
|
3
|
|
Research and
development expenses
|
|
532
|
|
|
|
|
532
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
148
|
|
|
|
|
—
|
|
|
|
|
150
|
|
|
|
|
(2)
|
4
|
|
Other operating
(income) expenses
|
|
356
|
|
|
|
|
63
|
|
|
|
|
300
|
|
|
|
|
(7)
|
3
|
|
Total operating
costs
|
|
11,187
|
|
|
|
|
10,569
|
|
|
|
|
622
|
|
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,130
|
|
|
|
|
1,014
|
|
|
|
|
183
|
|
|
|
|
(67)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
125
|
|
|
|
|
136
|
|
|
|
|
—
|
|
|
|
|
(11)
|
4
|
|
Other income
(expense)
|
|
(13)
|
|
|
|
|
(71)
|
|
|
|
|
2
|
|
|
|
|
56
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
992
|
|
|
|
|
807
|
|
|
|
|
185
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
283
|
|
|
|
|
224
|
|
|
|
|
59
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
709
|
|
|
|
|
583
|
|
|
|
|
126
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
2
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
126
|
|
|
|
|
—
|
|
|
|
|
(126)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
711
|
|
|
|
|
711
|
|
|
|
|
126
|
|
|
|
|
(126)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
1
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
710
|
|
|
|
$
|
710
|
|
|
|
$
|
126
|
|
|
|
$
|
(126)
|
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
|
7
|
Profit attributable
to common stockholders.
|
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Three Months Ended June 30, 2014
(Unaudited)
(Millions of dollars)
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
13,391
|
|
|
|
$
|
13,391
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
759
|
|
|
|
|
—
|
|
|
|
|
851
|
|
|
|
|
(92)
|
2
|
|
Total sales and
revenues
|
|
14,150
|
|
|
|
|
13,391
|
|
|
|
|
851
|
|
|
|
|
(92)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
10,197
|
|
|
|
|
10,197
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Selling, general and
administrative expenses
|
|
1,437
|
|
|
|
|
1,284
|
|
|
|
|
159
|
|
|
|
|
(6)
|
3
|
|
Research and
development expenses
|
|
516
|
|
|
|
|
516
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
153
|
|
|
|
|
—
|
|
|
|
|
155
|
|
|
|
|
(2)
|
4
|
|
Other operating
(income) expenses
|
|
372
|
|
|
|
|
77
|
|
|
|
|
305
|
|
|
|
|
(10)
|
3
|
|
Total operating
costs
|
|
12,675
|
|
|
|
|
12,074
|
|
|
|
|
619
|
|
|
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,475
|
|
|
|
|
1,317
|
|
|
|
|
232
|
|
|
|
|
(74)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
120
|
|
|
|
|
131
|
|
|
|
|
—
|
|
|
|
|
(11)
|
4
|
|
Other income
(expense)
|
|
65
|
|
|
|
|
(6)
|
|
|
|
|
8
|
|
|
|
|
63
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
1,420
|
|
|
|
|
1,180
|
|
|
|
|
240
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
419
|
|
|
|
|
349
|
|
|
|
|
70
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
1,001
|
|
|
|
|
831
|
|
|
|
|
170
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
1
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
168
|
|
|
|
|
—
|
|
|
|
|
(168)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,002
|
|
|
|
|
1,000
|
|
|
|
|
170
|
|
|
|
|
(168)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
3
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
999
|
|
|
|
$
|
999
|
|
|
|
$
|
168
|
|
|
|
$
|
(168)
|
|
|
|
|
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 stockholders.
|
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30, 2015
(Unaudited)
(Millions of dollars)
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
23,544
|
|
|
|
$
|
23,544
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
1,475
|
|
|
|
|
—
|
|
|
|
|
1,618
|
|
|
|
|
(143)
|
2
|
|
Total sales and
revenues
|
|
25,019
|
|
|
|
|
23,544
|
|
|
|
|
1,618
|
|
|
|
|
(143)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
17,605
|
|
|
|
|
17,606
|
|
|
|
|
—
|
|
|
|
|
(1)
|
3
|
|
Selling, general and
administrative expenses
|
|
2,707
|
|
|
|
|
2,394
|
|
|
|
|
305
|
|
|
|
|
8
|
3
|
|
Research and
development expenses
|
|
1,078
|
|
|
|
|
1,078
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
298
|
|
|
|
|
—
|
|
|
|
|
301
|
|
|
|
|
(3)
|
4
|
|
Other operating
(income) expenses
|
|
674
|
|
|
|
|
88
|
|
|
|
|
599
|
|
|
|
|
(13)
|
3
|
|
Total operating
costs
|
|
22,362
|
|
|
|
|
21,166
|
|
|
|
|
1,205
|
|
|
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,657
|
|
|
|
|
2,378
|
|
|
|
|
413
|
|
|
|
|
(134)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
254
|
|
|
|
|
275
|
|
|
|
|
—
|
|
|
|
|
(21)
|
4
|
|
Other income
(expense)
|
|
144
|
|
|
|
|
30
|
|
|
|
|
1
|
|
|
|
|
113
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,547
|
|
|
|
|
2,133
|
|
|
|
|
414
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
726
|
|
|
|
|
599
|
|
|
|
|
127
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
1,821
|
|
|
|
|
1,534
|
|
|
|
|
287
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
4
|
|
|
|
|
4
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
285
|
|
|
|
|
—
|
|
|
|
|
(285)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,825
|
|
|
|
|
1,823
|
|
|
|
|
287
|
|
|
|
|
(285)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
4
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,821
|
|
|
|
$
|
1,821
|
|
|
|
$
|
285
|
|
|
|
$
|
(285)
|
|
|
|
|
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 stockholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30, 2014
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
|
Machinery,
|
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
25,884
|
|
|
|
$
|
25,884
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
1,507
|
|
|
|
|
—
|
|
|
|
|
1,682
|
|
|
|
|
(175)
|
2
|
|
Total sales and
revenues
|
|
27,391
|
|
|
|
|
25,884
|
|
|
|
|
1,682
|
|
|
|
|
(175)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
19,634
|
|
|
|
|
19,634
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Selling, general and
administrative expenses
|
|
2,729
|
|
|
|
|
2,439
|
|
|
|
|
305
|
|
|
|
|
(15)
|
3
|
|
Research and
development expenses
|
|
1,024
|
|
|
|
|
1,024
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
313
|
|
|
|
|
—
|
|
|
|
|
317
|
|
|
|
|
(4)
|
4
|
|
Other operating
(income) expenses
|
|
818
|
|
|
|
|
231
|
|
|
|
|
603
|
|
|
|
|
(16)
|
3
|
|
Total operating
costs
|
|
24,518
|
|
|
|
|
23,328
|
|
|
|
|
1,225
|
|
|
|
|
(35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,873
|
|
|
|
|
2,556
|
|
|
|
|
457
|
|
|
|
|
(140)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
230
|
|
|
|
|
251
|
|
|
|
|
—
|
|
|
|
|
(21)
|
4
|
|
Other income
(expense)
|
|
119
|
|
|
|
|
(23)
|
|
|
|
|
23
|
|
|
|
|
119
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,762
|
|
|
|
|
2,282
|
|
|
|
|
480
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
837
|
|
|
|
|
699
|
|
|
|
|
138
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
1,925
|
|
|
|
|
1,583
|
|
|
|
|
342
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
2
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
337
|
|
|
|
|
—
|
|
|
|
|
(337)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,927
|
|
|
|
|
1,922
|
|
|
|
|
342
|
|
|
|
|
(337)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
6
|
|
|
|
|
1
|
|
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,921
|
|
|
|
$
|
1,921
|
|
|
|
$
|
337
|
|
|
|
$
|
(337)
|
|
|
|
|
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 stockholders.
|
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the
Six Months Ended June 30, 2015
(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
|
$
|
1,825
|
|
|
|
$
|
1,823
|
|
|
|
$
|
287
|
|
|
|
$
|
(285)
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,514
|
|
|
|
|
1,070
|
|
|
|
|
444
|
|
|
|
|
—
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(35)
|
|
|
|
|
—
|
|
|
|
|
35
|
3
|
|
|
Other
|
|
120
|
|
|
|
|
70
|
|
|
|
|
(65)
|
|
|
|
|
115
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
383
|
|
|
|
|
377
|
|
|
|
|
(53)
|
|
|
|
|
59
|
4,5
|
|
|
Inventories
|
|
332
|
|
|
|
|
337
|
|
|
|
|
—
|
|
|
|
|
(5)
|
4
|
|
|
Accounts
payable
|
|
(326)
|
|
|
|
|
(362)
|
|
|
|
|
24
|
|
|
|
|
12
|
4
|
|
|
Accrued
expenses
|
|
(71)
|
|
|
|
|
(75)
|
|
|
|
|
4
|
|
|
|
|
—
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(801)
|
|
|
|
|
(788)
|
|
|
|
|
(13)
|
|
|
|
|
—
|
|
|
|
Customer
advances
|
|
98
|
|
|
|
|
98
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other assets -
net
|
|
85
|
|
|
|
|
6
|
|
|
|
|
48
|
|
|
|
|
31
|
4
|
|
|
Other liabilities -
net
|
|
199
|
|
|
|
|
159
|
|
|
|
|
71
|
|
|
|
|
(31)
|
4
|
|
Net cash provided by
(used for) operating activities
|
|
3,358
|
|
|
|
|
2,680
|
|
|
|
|
747
|
|
|
|
|
(69)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(656)
|
|
|
|
|
(651)
|
|
|
|
|
(5)
|
|
|
|
|
—
|
|
|
Expenditures for
equipment leased to others
|
|
(815)
|
|
|
|
|
(108)
|
|
|
|
|
(726)
|
|
|
|
|
19
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
367
|
|
|
|
|
33
|
|
|
|
|
338
|
|
|
|
|
(4)
|
4
|
|
Additions to finance
receivables
|
|
(4,577)
|
|
|
|
|
—
|
|
|
|
|
(6,171)
|
|
|
|
|
1,594
|
5,8
|
|
Collections of
finance receivables
|
|
4,477
|
|
|
|
|
—
|
|
|
|
|
5,965
|
|
|
|
|
(1,488)
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
295
|
|
|
|
|
(295)
|
5
|
|
Proceeds from sale of
finance receivables
|
|
74
|
|
|
|
|
—
|
|
|
|
|
74
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(35)
|
|
|
|
|
1
|
|
|
|
|
34
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(63)
|
|
|
|
|
(63)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
168
|
|
|
|
|
175
|
|
|
|
|
—
|
|
|
|
|
(7)
|
8
|
|
Proceeds from sale of
securities
|
|
128
|
|
|
|
|
6
|
|
|
|
|
122
|
|
|
|
|
—
|
|
|
Investments in
securities
|
|
(119)
|
|
|
|
|
(9)
|
|
|
|
|
(110)
|
|
|
|
|
—
|
|
|
Other -
net
|
|
(75)
|
|
|
|
|
(29)
|
|
|
|
|
(46)
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(1,091)
|
|
|
|
|
(681)
|
|
|
|
|
(263)
|
|
|
|
|
(147)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(846)
|
|
|
|
|
(846)
|
|
|
|
|
(250)
|
|
|
|
|
250
|
7
|
|
Distribution to
noncontrolling interests
|
|
(7)
|
|
|
|
|
(7)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Common stock issued,
including treasury shares reissued
|
|
33
|
|
|
|
|
33
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Treasury shares
purchased
|
|
(525)
|
|
|
|
|
(525)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Excess tax benefit
from stock-based compensation
|
|
18
|
|
|
|
|
18
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(1)
|
|
|
|
|
35
|
|
|
|
|
(34)
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
3,691
|
|
|
|
|
3
|
|
|
|
|
3,688
|
|
|
|
|
—
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(6,089)
|
|
|
|
|
(509)
|
|
|
|
|
(5,580)
|
|
|
|
|
—
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
1,972
|
|
|
|
|
6
|
|
|
|
|
1,966
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(1,753)
|
|
|
|
|
(1,828)
|
|
|
|
|
(141)
|
|
|
|
|
216
|
|
|
Effect of exchange
rate changes on cash
|
|
(34)
|
|
|
|
|
(22)
|
|
|
|
|
(12)
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
480
|
|
|
|
|
149
|
|
|
|
|
331
|
|
|
|
|
—
|
|
|
Cash and short-term
investments at beginning of period
|
|
7,341
|
|
|
|
|
6,317
|
|
|
|
|
1,024
|
|
|
|
|
—
|
|
|
Cash and short-term
investments at end of period
|
$
|
7,821
|
|
|
|
$
|
6,466
|
|
|
|
$
|
1,355
|
|
|
|
$
|
—
|
|
|
|
|
|
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.
|
|
|
7
|
Elimination of
dividend from Financial Products to Machinery, Energy &
Transportation.
|
|
|
8
|
Elimination of
proceeds received from Financial Products related to Machinery,
Energy & Transportation's sale of businesses and
investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the
Six Months Ended June 30, 2014
(Unaudited)
(Millions of dollars)
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Supplemental
Consolidating Data
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Machinery,
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Consolidated
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Energy &
Transportation 1
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Financial
Products
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Consolidating
Adjustments
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Cash flow from
operating activities:
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Profit of
consolidated and affiliated companies
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$
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1,927
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|
$
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1,922
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$
|
342
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$
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(337)
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2
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Adjustments for
non-cash items:
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Depreciation and
amortization
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1,570
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1,122
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448
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—
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Undistributed profit
of Financial Products
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—
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(87)
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—
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87
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3
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Other
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240
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|
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199
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(60)
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101
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4
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Changes in assets and
liabilities, net of acquisitions and divestitures:
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Receivables - trade
and other
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251
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707
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35
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(491)
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4,5
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Inventories
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(439)
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(431)
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—
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(8)
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4
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Accounts
payable
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438
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431
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(69)
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76
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4
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Accrued
expenses
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7
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81
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(74)
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—
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Accrued wages,
salaries and employee benefits
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283
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286
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(3)
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—
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Customer
advances
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(14)
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(14)
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—
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—
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Other assets -
net
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(105)
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(40)
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(15)
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(50)
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4
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Other liabilities -
net
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(24)
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(234)
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159
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51
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4
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Net cash provided by
(used for) operating activities
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4,134
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3,942
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763
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(571)
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Cash flow from
investing activities:
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Capital expenditures
- excluding equipment leased to others
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(710)
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(707)
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(3)
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—
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Expenditures for
equipment leased to others
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(825)
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(31)
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(828)
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34
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4
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Proceeds from
disposals of leased assets and property, plant and
equipment
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442
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48
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398
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(4)
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4
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Additions to finance
receivables
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(5,760)
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—
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(7,223)
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1,463
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5,8
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Collections of
finance receivables
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4,719
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—
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5,994
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(1,275)
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5
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Net intercompany
purchased receivables
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—
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—
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(109)
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109
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5
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Proceeds from sale of
finance receivables
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104
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—
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107
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(3)
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5
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Net intercompany
borrowings
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—
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—
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1
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(1)
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6
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Investments and
acquisitions (net of cash acquired)
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(15)
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(15)
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—
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—
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Proceeds from sale of
businesses and investments (net of cash sold)
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139
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142
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—
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(3)
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8
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Proceeds from sale of
securities
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222
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12
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210
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—
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Investments in
securities
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(673)
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(417)
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(256)
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—
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Other -
net
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(25)
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28
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(53)
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—
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Net cash provided by
(used for) investing activities
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(2,382)
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(940)
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(1,762)
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320
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Cash flow from
financing activities:
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Dividends
paid
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(757)
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(757)
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(250)
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250
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7
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Distribution to
noncontrolling interests
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(7)
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(7)
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—
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—
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Contribution from
noncontrolling interests
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2
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2
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—
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—
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Common stock issued,
including treasury shares reissued
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194
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194
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—
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—
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Treasury shares
purchased
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(1,738)
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(1,738)
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—
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—
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Excess tax benefit
from stock-based compensation
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131
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131
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—
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—
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Net intercompany
borrowings
|
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—
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(1)
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—
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1
|
6
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Proceeds from debt
issued (original maturities greater than three months)
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6,951
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1,990
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4,961
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—
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Payments on debt
(original maturities greater than three months)
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(6,344)
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(770)
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(5,574)
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—
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Short-term borrowings
- net (original maturities three months or less)
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1,749
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9
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1,740
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—
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Net cash provided by
(used for) financing activities
|
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181
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(947)
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|
877
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251
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|
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Effect of exchange
rate changes on cash
|
|
(87)
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(37)
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(50)
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—
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Increase
(decrease) in cash and short-term investments
|
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1,846
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|
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2,018
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(172)
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—
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Cash and short-term
investments at beginning of period
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6,081
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4,597
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1,484
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—
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Cash and short-term
investments at end of period
|
$
|
7,927
|
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$
|
6,615
|
|
|
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$
|
1,312
|
|
|
|
$
|
—
|
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1
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Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
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2
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Elimination of
Financial Products' profit after tax due to equity method of
accounting.
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3
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Elimination of
non-cash adjustments for the undistributed earnings from Financial
Products.
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4
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Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
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5
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Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
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6
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Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products.
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7
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Elimination of
dividend from Financial Products to Machinery, Energy &
Transportation.
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8
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Elimination of
proceeds received from Financial Products related to Machinery,
Energy & Transportation's sale of portions of the Bucyrus
distribution business to Cat dealers.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/caterpillar-reports-second-quarter-2015-results-300117557.html
SOURCE Caterpillar Inc.