PEORIA, Ill., April 22, 2016 /PRNewswire/ --
|
|
|
First
Quarter
|
|
($ in billions except
profit per share)
|
2015
|
|
2016
|
|
Sales and
Revenues
|
|
$12.702
|
|
$9.461
|
|
Profit Per
Share
|
|
$2.03
|
|
$0.46
|
|
Profit Per
Share
|
|
$2.07
|
|
$0.67
|
|
(Excluding
Restructuring Costs)
|
|
|
|
Caterpillar Inc. (NYSE: CAT) today announced first-quarter 2016
sales and revenues of $9.5 billion,
down from $12.7 billion in the first
quarter of 2015. First-quarter 2016 profit per share of
$0.46 was down from a profit of
$2.03 per share in the first quarter
of 2015. Excluding restructuring costs, profit
per share was $0.67, compared with
$2.07 per share in the first quarter
of 2015.
"While first-quarter results were about as we expected, sales
and profit were well below the first quarter of 2015. Sales
declined across the company with substantial reductions in
construction, oil and gas, mining and rail. While many of the
industries we serve are challenged, we remain focused on what we
can control: the quality of our products, our market position,
safety in our facilities and continued restructuring and cost
reduction. In fact, our period costs and
variable manufacturing costs in the quarter were
nearly $500 million lower than the
first quarter of 2015," said Caterpillar Chairman and Chief
Executive Officer Doug
Oberhelman.
2016 Outlook
We have seen recent increases in commodity prices, some signs of
improvement in construction equipment in China and better order activity than we
expected at bauma, the world's leading trade fair for many of the
industries we serve. While we are seeing a few positive
signals, other parts of our business remain challenged. As a
result, we have lowered the midpoint of the outlook for 2016 sales
and revenues about 2 percent.
Sales and revenues in 2016 are expected to be in a range of
$40 to $42 billion with a midpoint of
$41 billion. The previous
outlook was a range of $40 to $44
billion with a midpoint of $42
billion. The decline in the midpoint of the sales and
revenues outlook range is a result of several factors that, while
not individually large in the context of the outlook, collectively
add up to about $1 billion.
Those factors include lower transportation sales (rail, marine and
the ending of production of on-highway vocational trucks), lower
mining sales and weaker price realization than
previously expected.
The profit outlook at the midpoint of the sales and revenues
range is now $3.00 per share, or
$3.70 per share excluding
restructuring costs. The previous profit outlook was
$3.50 per share, or $4.00 per share excluding restructuring costs at
the midpoint of the previous sales and revenues outlook. The
expected decline in sales and revenues and an increase in expected
restructuring costs are the primary reasons for the decline in the
profit outlook.
Restructuring costs are now expected to be about $550 million in 2016, up $150 million from the previous outlook. The
decision to end production of on-highway vocational trucks is the
primary reason for the increase in restructuring costs.
"While many of the industries we serve are challenged today,
we're looking ahead and investing for the future. We're
investing substantially in R&D, driving forward on our
Lean journey, continuing implementation of Across the
Table with our dealers and accelerating our digital strategy," said
Oberhelman.
"Our digital strategy is an exciting investment for the long
term. We're hard at work, inside Caterpillar and with our
digital partners, developing the data architecture and applications
that will make our products smarter and help our customers improve
productivity and safety. Our goal is to help customers be
more productive, better manage their fleets and make more money
with Caterpillar than they could with our competitors. Our
approximately 400,000 (and growing) connected assets mean entire
fleets and job sites – from machines to tablets to drones – will
eventually share data on one common technology platform in the age
of smart iron. One thing that I am certain of is that it's
times like these when the Caterpillar team demonstrates the
innovation and ambition to be the leader in all we do," added
Oberhelman.
Highlights
- First-quarter sales and revenues and profit excluding
restructuring costs about as expected
- Continued tough market conditions in many of the company's
businesses – Mining, oil and gas, rail and construction in key
developing countries
- Good operational performance continues – Overall machine
market position better in first quarter of 2016 than this point
last year; continues to improve in China. Focus remains on quality, safety and
cost reduction
- Outlook lowered – Midpoint of sales and revenues range
lowered about 2 percent
- Strong balance sheet – Maintained $0.77 per share dividend (announced April 13, 2016)
- Significant progress on restructuring actions –
Contributed to substantial cost reduction in first quarter
- Investment in the future continues – Focus on
accelerated digital technology, R&D, Lean and dealer-focused
initiative "Across the Table"
Recast of 2015 Earnings for Change in Accounting
Principle
As discussed in the year-end 2015 earnings release, Caterpillar
has implemented a change in accounting principle for pension
and OPEB costs. Under the new accounting principle,
we will recognize actuarial gains and losses as a mark-to-market
gain or loss when they occur rather than amortizing them to
earnings over time. As a result of the accounting change,
2015 earnings have been recast to make results comparable on a
year-over-year basis. The accounting change added
$0.68 per share to 2015 profit.
Profit per share for 2015 has been recast from $3.50 per share to $4.18 per share. Excluding mark-to-market
pension and OPEB losses and restructuring costs, profit per share
for 2015 has been recast from $4.64
per share to $5.47 per share.
First-quarter 2015 profit per share has been recast from
$1.81 per share to $2.03 per share. Excluding restructuring
costs first-quarter 2015 profit per share has been recast from
$1.86 per share to $2.07 per share. More information on the
impact of the change in accounting principle can be found on page
14.
Notes:
- Glossary of terms is included on pages 19-20; first
occurrence of terms shown in bold italics.
- Information on non-GAAP financial measures is included on
page 21.
- Caterpillar will conduct a teleconference and live webcast,
with a slide presentation, beginning at 10
a.m. Central Time on Friday, April
22, 2016, to discuss its 2016 first-quarter results. The
slides accompanying the webcast will be available before the
webcast on the Caterpillar website at
http://www.caterpillar.com/investors/events-and-presentations.
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 2015 sales and
revenues of $47.011 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 press release relate to future events
and expectations and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "believe," "estimate," "will be," "will,"
"would," "expect," "anticipate," "plan," "project," "intend,"
"could," "should" or other similar words or expressions often
identify forward-looking statements. All statements other
than statements of historical fact are forward-looking statements,
including, without limitation, statements regarding our outlook,
projections, forecasts or trend descriptions. These
statements do not guarantee future performance, and 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 16, 2016 for the year ended
December 31, 2015.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
First Quarter 2016 vs. First Quarter 2015
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 1Q 2016 earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Sales and Revenues between the first quarter of
2015 (at left) and the first quarter of 2016 (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 $9.461
billion in the first quarter of 2016, compared with
$12.702 billion in the first quarter
of 2015, a decline of $3.241 billion,
or 26 percent. The decrease was primarily due to lower
sales volume. While sales for both new
equipment and aftermarket parts declined in all segments, most of
the decrease was for new equipment. The unfavorable impact of
price realization and currency also contributed to
the decline.
Sales declined in all regions. In North America, sales
decreased 26 percent due to both lower end-user demand, primarily
in Energy & Transportation, and the unfavorable
impact of changes in dealer inventories, primarily in
Construction Industries. In EAME,
sales declined 24 percent, primarily in Africa/Middle
East due to weak economic conditions resulting from low oil
and other commodity prices. Asia/Pacific sales declined 23 percent,
primarily due to lower end-user demand for Energy &
Transportation applications and products used in mining.
Sales decreased 43 percent in Latin
America, primarily due to widespread economic
weakness across the region. The most significant decreases
were in Brazil and Mexico.
Sales decreased in all segments. Energy &
Transportation's sales declined 33 percent largely due to lower
end-user demand for oil and gas and transportation
applications. Construction Industries' sales decreased 19
percent, primarily due to the unfavorable impact of changes in
dealer inventories, lower demand from end users and unfavorable
price realization. Resource
Industries' sales declined 26 percent, mostly due to
continued low end-user demand. Financial Products'
segment revenues were down 7 percent, primarily due to
lower average earning assets and lower average
financing rates.
Consolidated Operating Profit
Consolidated Operating Profit Comparison
First Quarter 2016 vs. First Quarter 2015
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 1Q 2016 earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Operating Profit (Loss) between the first quarter
of 2015 (at left) and the first quarter of 2016 (at right).
Items favorably impacting operating profit appear as
upward stair steps with the corresponding dollar amounts above each
bar, while items negatively impacting operating profit appear as
downward stair steps with dollar amounts reflected in parentheses
above each bar. Caterpillar management utilizes these charts
internally to visually communicate with the company's Board of
Directors and employees. The bar entitled Other includes
consolidating adjustments and Machinery, Energy
& Transportation other operating (income) expenses.
Operating profit for the first quarter of 2016 was $494 million, compared with $1.702 billion in the first quarter of
2015. The decrease of $1.208
billion was primarily due to lower sales volume, including
an unfavorable mix of products, resulting from continued weak
commodity prices globally and economic weakness in developing
countries. In addition, price realization and restructuring
costs were unfavorable. These items were partially offset by
favorable period costs and variable manufacturing costs.
The unfavorable price realization resulted from competitive
market conditions and an unfavorable geographic mix of sales.
Variable manufacturing costs were favorable, primarily due to
improved material costs. Period costs were lower, primarily
resulting from substantial restructuring and cost reduction actions
and lower short-term incentive compensation expense. The
reductions impacted period manufacturing costs and selling, general
and administrative expenses (SG&A). Research and
development expenses (R&D) were about flat.
Restructuring costs of $161
million in the first quarter of 2016 were primarily related
to our decision to discontinue production of on-highway vocational
trucks and other restructuring actions across the company. In
the first quarter of 2015, restructuring costs were $35 million.
Other Profit/Loss Items
- Other income/expense in the first quarter of 2016 was
zero, compared with income of $194
million in the first quarter of 2015. The unfavorable change
was primarily due to the absence of a gain of $120 million on the sale of the remaining 35
percent interest in our former third-party logistics business. In
addition, the net impact from currency translation and hedging
gains and losses was unfavorable. There were net losses in the
first quarter of 2016, compared to net gains in the first quarter
of 2015.
- The provision for income taxes in the first quarter
reflects an estimated annual tax rate of 25 percent, compared to
29.5 percent for the first quarter of 2015 and 25.5 percent for the
full-year 2015 excluding discrete items. The full-year rate for
2015 was lower than the first-quarter 2015 rate, primarily due to
changes in the geographic mix of profits from a tax perspective
along with the impact of the permanent renewal of the U.S. research
and development tax credit in the fourth quarter of 2015.
Global Workforce
Caterpillar worldwide, full-time employment was about 101,400 at
the end of the first quarter of 2016, compared with about 113,300
at the end of the first quarter of 2015, a decrease of about 11,900
full-time employees. The flexible workforce decreased by
about 3,200 for a total decrease in the global workforce of about
15,100. The decrease was primarily the result of
restructuring programs and lower production volumes.
|
|
March
31
|
|
|
2016
|
|
2015
|
|
Increase/
(Decrease)
|
|
Full-time
employment
|
|
101,400
|
|
113,300
|
|
(11,900)
|
|
Flexible
workforce
|
|
12,900
|
|
16,100
|
|
(3,200)
|
|
Total
|
|
114,300
|
|
129,400
|
|
(15,100)
|
|
|
|
|
|
|
|
|
Geographic summary of
change
|
|
|
|
|
|
|
|
U.S.
workforce
|
|
|
|
|
|
(8,000)
|
|
Non-U.S.
workforce
|
|
|
|
|
|
(7,100)
|
|
Total
|
|
|
|
|
|
(15,100)
|
SEGMENT RESULTS
Segment results for the first quarter of 2015 have been
recast. See page 14 for additional details.
|
Sales and Revenues
by Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
North
|
|
%
|
|
Latin
|
|
%
|
|
|
|
%
|
|
Asia/
|
|
%
|
|
(Millions of
dollars)
|
Total
|
|
Change
|
|
America
|
|
Change
|
|
America
|
|
Change
|
|
EAME
|
|
Change
|
|
Pacific
|
|
Change
|
|
First Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$ 4,043
|
|
(19)
|
%
|
|
$ 2,058
|
|
(18)
|
%
|
|
$ 231
|
|
(52)
|
%
|
|
$ 847
|
|
(17)
|
%
|
|
$ 907
|
|
(9)
|
%
|
|
Resource
Industries²
|
1,449
|
|
(26)
|
%
|
|
604
|
|
(23)
|
%
|
|
268
|
|
(14)
|
%
|
|
262
|
|
(43)
|
%
|
|
315
|
|
(23)
|
%
|
|
Energy &
Transportation³
|
3,278
|
|
(33)
|
%
|
|
1,566
|
|
(34)
|
%
|
|
200
|
|
(53)
|
%
|
|
982
|
|
(21)
|
%
|
|
530
|
|
(40)
|
%
|
|
All Other
Segments⁴
|
38
|
|
(47)
|
%
|
|
15
|
|
(42)
|
%
|
|
1
|
|
(75)
|
%
|
|
9
|
|
(63)
|
%
|
|
13
|
|
(28)
|
%
|
|
Corporate Items and
Eliminations
|
(28)
|
|
|
|
|
(24)
|
|
|
|
|
(1)
|
|
|
|
|
(2)
|
|
|
|
|
(1)
|
|
|
|
|
Machinery, Energy
& Transportation
|
$ 8,780
|
|
(27)
|
%
|
|
$ 4,219
|
|
(26)
|
%
|
|
$ 699
|
|
(43)
|
%
|
|
$ 2,098
|
|
(24)
|
%
|
|
$ 1,764
|
|
(23)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$ 743
|
|
(7)
|
%
|
|
$ 459
|
|
2
|
%
|
|
$ 87
|
|
(19)
|
%
|
|
$ 98
|
|
(10)
|
%
|
|
$ 99
|
|
(23)
|
%
|
|
Corporate Items and
Eliminations
|
(62)
|
|
|
|
|
(34)
|
|
|
|
|
(14)
|
|
|
|
|
(4)
|
|
|
|
|
(10)
|
|
|
|
|
Financial
Products Revenues
|
$ 681
|
|
(8)
|
%
|
|
$ 425
|
|
-
|
%
|
|
$ 73
|
|
(25)
|
%
|
|
$ 94
|
|
(10)
|
%
|
|
$ 89
|
|
(24)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$ 9,461
|
|
(26)
|
%
|
|
$ 4,644
|
|
(24)
|
%
|
|
$ 772
|
|
(41)
|
%
|
|
$ 2,192
|
|
(23)
|
%
|
|
$ 1,853
|
|
(23)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$ 5,014
|
|
|
|
|
$ 2,520
|
|
|
|
|
$ 480
|
|
|
|
|
$ 1,017
|
|
|
|
|
$ 997
|
|
|
|
|
Resource
Industries²
|
1,971
|
|
|
|
|
789
|
|
|
|
|
311
|
|
|
|
|
462
|
|
|
|
|
409
|
|
|
|
|
Energy &
Transportation³
|
4,915
|
|
|
|
|
2,368
|
|
|
|
|
425
|
|
|
|
|
1,244
|
|
|
|
|
878
|
|
|
|
|
All Other
Segments⁴
|
72
|
|
|
|
|
26
|
|
|
|
|
4
|
|
|
|
|
24
|
|
|
|
|
18
|
|
|
|
|
Corporate Items and
Eliminations
|
(11)
|
|
|
|
|
(16)
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
3
|
|
|
|
|
Machinery, Energy
& Transportation
|
$11,961
|
|
|
|
|
$ 5,687
|
|
|
|
|
$ 1,221
|
|
|
|
|
$ 2,748
|
|
|
|
|
$ 2,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$ 795
|
|
|
|
|
$ 451
|
|
|
|
|
$ 107
|
|
|
|
|
$ 109
|
|
|
|
|
$ 128
|
|
|
|
|
Corporate Items and
Eliminations
|
(54)
|
|
|
|
|
(28)
|
|
|
|
|
(10)
|
|
|
|
|
(5)
|
|
|
|
|
(11)
|
|
|
|
|
Financial
Products Revenues
|
$ 741
|
|
|
|
|
$ 423
|
|
|
|
|
$ 97
|
|
|
|
|
$ 104
|
|
|
|
|
$ 117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$12,702
|
|
|
|
|
$ 6,110
|
|
|
|
|
$ 1,318
|
|
|
|
|
$ 2,852
|
|
|
|
|
$ 2,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Does not include inter-segment sales of $8 million and $23 million
in first quarter 2016 and 2015, respectively.
|
|
2
Does not include inter-segment sales of $71 million and $87 million
in first quarter 2016 and 2015, respectively.
|
|
3
Does not include inter-segment sales of $632 million and $794
million in first quarter 2016 and 2015, respectively.
|
|
4
Does not include inter-segment sales of $92 million and $103
million in first quarter 2016 and 2015, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
|
|
Sales
|
|
Price
|
|
|
|
|
|
|
First
|
|
$
|
|
%
|
|
(Millions of
dollars)
|
Quarter
2015
|
|
Volume
|
|
Realization
|
|
Currency
|
|
|
Other
|
|
Quarter
2016
|
|
Change
|
|
Change
|
|
Construction
Industries
|
$ 5,014
|
|
$ (701)
|
|
$ (172)
|
|
$ (98)
|
|
|
$ -
|
|
$ 4,043
|
|
$ (971)
|
|
(19)
|
%
|
|
Resource
Industries
|
1,971
|
|
(463)
|
|
(38)
|
|
(21)
|
|
|
-
|
|
1,449
|
|
(522)
|
|
(26)
|
%
|
|
Energy &
Transportation
|
4,915
|
|
(1,543)
|
|
(24)
|
|
(70)
|
|
|
-
|
|
3,278
|
|
(1,637)
|
|
(33)
|
%
|
|
All Other
Segments
|
72
|
|
(33)
|
|
-
|
|
(1)
|
|
|
-
|
|
38
|
|
(34)
|
|
(47)
|
%
|
|
Corporate Items and
Eliminations
|
(11)
|
|
(19)
|
|
-
|
|
2
|
|
|
-
|
|
(28)
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery, Energy
& Transportation
|
$ 11,961
|
|
$ (2,759)
|
|
$ (234)
|
|
$ (188)
|
|
|
$ -
|
|
$ 8,780
|
|
$ (3,181)
|
|
(27)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
795
|
|
-
|
|
-
|
|
-
|
|
|
(52)
|
|
743
|
|
(52)
|
|
(7)
|
%
|
|
Corporate Items and
Eliminations
|
(54)
|
|
-
|
|
-
|
|
-
|
|
|
(8)
|
|
(62)
|
|
(8)
|
|
|
|
|
Financial Products
Revenues
|
$
741
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
$ (60)
|
|
$
681
|
|
$ (60)
|
|
(8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$ 12,702
|
|
$ (2,759)
|
|
$ (234)
|
|
$ (188)
|
|
|
$ (60)
|
|
$ 9,461
|
|
$ (3,241)
|
|
(26)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss) by Segment
|
|
|
|
|
|
|
|
|
|
First
|
|
First
|
|
$
|
|
%
|
|
(Millions of
dollars)
|
Quarter
2016
|
|
Quarter
2015
|
|
Change
|
|
Change
|
|
Construction
Industries
|
$
440
|
|
$
745
|
|
$
(305)
|
|
(41)
|
%
|
|
Resource
Industries
|
(96)
|
|
96
|
|
(192)
|
|
(200)
|
%
|
|
Energy &
Transportation
|
410
|
|
1,024
|
|
(614)
|
|
(60)
|
%
|
|
All Other
Segments
|
(7)
|
|
(7)
|
|
-
|
|
-
|
%
|
|
Corporate Items and
Eliminations
|
(357)
|
|
(319)
|
|
(38)
|
|
|
|
|
Machinery, Energy
& Transportation
|
$
390
|
|
$
1,539
|
|
$
(1,149)
|
|
(75)
|
%
|
|
Financial Products
Segment
|
168
|
|
227
|
|
(59)
|
|
(26)
|
%
|
|
Corporate Items and
Eliminations
|
(1)
|
|
3
|
|
(4)
|
|
|
|
|
Financial
Products
|
$
167
|
|
$
230
|
|
$
(63)
|
|
(27)
|
%
|
|
Consolidating
Adjustments
|
(63)
|
|
(67)
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit (Loss)
|
$
494
|
|
$
1,702
|
|
$
(1,208)
|
|
(71)
|
%
|
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
First Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
Sales
Comparison1
|
$5,014
|
|
($701)
|
|
($172)
|
|
($98)
|
|
$4,043
|
|
($971)
|
|
(19)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
First Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
North
America
|
$2,058
|
|
$2,520
|
|
($462)
|
|
(18)
|
%
|
|
|
|
|
|
|
|
|
|
Latin
America
|
231
|
|
480
|
|
(249)
|
|
(52)
|
%
|
|
|
|
|
|
|
|
|
|
EAME
|
847
|
|
1,017
|
|
(170)
|
|
(17)
|
%
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
907
|
|
997
|
|
(90)
|
|
(9)
|
%
|
|
|
|
|
|
|
|
|
|
Total1
|
$4,043
|
|
$5,014
|
|
($971)
|
|
(19)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
First Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
$440
|
|
$745
|
|
($305)
|
|
(41)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $8 million and $23 million in first quarter
2016 and 2015, respectively.
|
|
Construction Industries' sales were $4.043 billion in the first quarter of 2016, a
decrease of $971 million, or 19
percent, from the first quarter of 2015. The decrease in
sales was due to lower volume, unfavorable price realization and
the unfavorable impact of currency. While sales declined for
both new equipment and aftermarket parts, substantially all of the
decrease was for new equipment.
- Sales volume declined primarily due to the unfavorable impact
of changes in dealer inventories. Dealers increased inventories in
both the first quarter of 2016 and the first quarter of 2015;
however, the increase was greater in the first quarter of 2015. In
addition, deliveries to end users were lower.
- The unfavorable impact of currency was due to the strengthening
of the U.S. dollar compared to most other currencies.
Sales decreased in all regions.
- In North America, the sales
decline was primarily due to dealers increasing inventories more
significantly in the first quarter of 2015 than the first quarter
of 2016. In addition, although residential and nonresidential
construction activity is improving, sales to end users were lower
than the first quarter of 2015. We believe declines in construction
activity related to oil and gas have resulted in the availability
of existing construction equipment for other purposes. Unfavorable
price realization resulted from competitive market conditions.
- In Latin America, end-user
demand was down across the region, with the most significant
declines in Brazil due to
depressed economic conditions and in Mexico due to weak construction activity.
- Lower sales in EAME were primarily due to unfavorable price
realization and lower end-user demand. Price realization was
unfavorable across the region due to competitive market conditions.
The decline in end-user demand was most significant in
oil-producing economies. In addition, sales declined in
South Africa where we believe an
uncertain regulatory and political environment contributed to lower
end-user demand.
- Sales in Asia/Pacific were
down as a result of the unfavorable impact of changes in dealer
inventories, which were about flat in the first quarter of 2016 and
increased in the first quarter of 2015.
Construction Industries' profit was $440
million in the first quarter of 2016, compared with
$745 million in the first quarter of
2015. The decrease in profit was primarily due to lower sales
volume, including an unfavorable mix of products and unfavorable
price realization resulting from competitive market
conditions. The decline was partially offset by favorable
costs, primarily due to restructuring and cost reduction actions
and lower material costs.
|
RESOURCE
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
First Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
Sales
Comparison1
|
$1,971
|
|
($463)
|
|
($38)
|
|
($21)
|
|
|
$1,449
|
|
($522)
|
|
(26)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
First Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$604
|
|
$789
|
|
($185)
|
|
(23)
|
%
|
|
|
|
|
|
|
|
|
Latin
America
|
268
|
|
311
|
|
(43)
|
|
(14)
|
%
|
|
|
|
|
|
|
|
|
EAME
|
262
|
|
462
|
|
(200)
|
|
(43)
|
%
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
315
|
|
409
|
|
(94)
|
|
(23)
|
%
|
|
|
|
|
|
|
|
|
Total1
|
$1,449
|
|
$1,971
|
|
($522)
|
|
(26)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
First Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss)
|
($96)
|
|
$96
|
|
($192)
|
|
(200)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $71 million and $87 million in first quarter
2016 and 2015, respectively.
|
|
Resource Industries' sales were $1.449
billion in the first quarter of 2016, a decrease of
$522 million, or 26 percent, from the
first quarter of 2015. The decline was primarily due to lower
sales volume. Sales were lower for both new equipment and
aftermarket parts.
The sales decrease was primarily due to lower end-user demand
across all regions. In addition, the sales decline in EAME
was partially due to the unfavorable impact of changes in dealer
inventories, as dealers lowered inventories in the first quarter of
2016, compared to increasing inventories in the first quarter of
2015.
Commodity prices improved from their recent lows, but excess
supply remains. It is not clear at this time that the current
prices are either sustainable or sufficient to drive increased
demand for equipment. Mining customers continued to focus on
improving productivity in existing mines and reducing their total
capital expenditures, as they have for several years. As a
result, sales and new orders in Resource Industries continue to be
weak.
Resource Industries incurred a loss of $96 million in the first quarter of 2016,
compared with profit of $96 million
in the first quarter of 2015. The unfavorable change was due
to lower sales volume and negative price realization. This
was partially offset by improved period manufacturing and SG&A
expenses due to restructuring and cost reduction actions.
|
ENERGY &
TRANSPORTATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
First Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
Sales
Comparison1
|
$4,915
|
|
($1,543)
|
|
($24)
|
|
($70)
|
|
|
$3,278
|
|
($1,637)
|
|
(33)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
First Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$1,566
|
|
$2,368
|
|
($802)
|
|
(34)
|
%
|
|
|
|
|
|
|
|
|
Latin
America
|
200
|
|
425
|
|
(225)
|
|
(53)
|
%
|
|
|
|
|
|
|
|
|
EAME
|
982
|
|
1,244
|
|
(262)
|
|
(21)
|
%
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
530
|
|
878
|
|
(348)
|
|
(40)
|
%
|
|
|
|
|
|
|
|
|
Total1
|
$3,278
|
|
$4,915
|
|
($1,637)
|
|
(33)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
First Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Operating
Profit
|
$410
|
|
$1,024
|
|
($614)
|
|
(60)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $632 million and $794 million in first
quarter 2016 and 2015, respectively.
|
|
|
|
Energy & Transportation's sales were $3.278 billion in the first quarter of 2016, a
decrease of $1.637 billion, or 33
percent, from the first quarter of 2015. The decrease was
primarily the result of lower sales volume. Sales decreased
in all applications with more than 80 percent of the decline in oil
and gas and transportation.
- Oil and Gas – Sales continued to decrease in much of the
world due to low oil prices. The sales decline was most significant
in equipment used for gas compression, well servicing and
production, with the most significant impact in North America. The decline in sales of
equipment for gas compression was primarily in reciprocating
engines.
- Transportation – Sales decreased in all geographic
regions. The most significant decline was in North America, primarily due to significant
weakness in the rail industry. In addition, the first quarter of
2015 benefited from deliveries of locomotives that began production
in 2014. In Asia/Pacific, the
decrease was due to the absence of a large locomotive sale in the
first quarter of 2015 and a decline for equipment used in marine
applications.
- Power Generation – Sales decreased significantly in
Latin America and North America, slightly in EAME and were about
flat in Asia/Pacific. The decline
is primarily due to weak economic conditions in Latin America and the absence of several large
projects in North America.
- Industrial – Sales were lower in Asia/Pacific, Latin
America and North America
and about flat in EAME. The decline in sales was primarily due to
lower end-user demand for most industrial applications.
Energy & Transportation's profit was $410 million in the first quarter of 2016,
compared with $1.024 billion in the
first quarter of 2015. The decline was due to a decrease in
sales volume, partially offset by lower costs primarily due to
restructuring and cost reduction actions and favorable material
costs.
|
FINANCIAL PRODUCTS
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
|
|
|
|
|
First Quarter
2016
|
|
First Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
North
America
|
$459
|
|
$451
|
|
$8
|
|
2
|
%
|
|
Latin
America
|
87
|
|
107
|
|
(20)
|
|
(19)
|
%
|
|
EAME
|
98
|
|
109
|
|
(11)
|
|
(10)
|
%
|
|
Asia/Pacific
|
99
|
|
128
|
|
(29)
|
|
(23)
|
%
|
|
Total
|
$743
|
|
$795
|
|
($52)
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
First Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
Operating
Profit
|
$168
|
|
$227
|
|
($59)
|
|
(26)
|
%
|
|
|
|
|
|
|
|
|
|
Financial Products' revenues were $743
million in the first quarter of 2016, a decrease of
$52 million, or 7 percent, from the
first quarter of 2015. The decline was primarily due to lower
average earning assets and lower average financing rates.
Average earning assets were down in Asia/Pacific, Latin
America and EAME, partially offset by higher average earning
assets in North America. Average financing rates decreased
across all regions.
Financial Products' profit was $168
million in the first quarter of 2016, compared with
$227 million in the first quarter of
2015. The decrease was primarily due to a $17 million decrease in net yield on average
earning assets reflecting geographic mix changes and currency
impacts, an $11 million increase in
the provision for credit losses at Cat Financial and a $10 million unfavorable impact from lower average
earning assets.
At the end of the first quarter of 2016, past dues at Cat
Financial were 2.78 percent, compared with 3.08 percent at the end
of the first quarter of 2015 and 2.14 percent at the end of
2015. There is some seasonality in past due percentages and
it is common to see an increase in the first quarter.
Write-offs, net of recoveries, were $31
million for the first quarter of 2016, compared with
$12 million for the first quarter of
2015. The increase in write-offs, net of recoveries, was
primarily driven by Caterpillar Power Finance and North American
portfolios.
As of March 31, 2016, Cat
Financial's allowance for credit losses totaled $340 million, or 1.21 percent of net finance
receivables, compared with $392
million, or 1.38 percent of net finance receivables at
March 31, 2015. The allowance
for credit losses at year-end 2015 was $338
million, or 1.22 percent of net finance receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $358 million in the first quarter of 2016, an
increase of $42 million from the
first quarter of 2015. 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; cost of sales methodology
differences as segments use a current cost methodology; and
inter-segment eliminations.
The increase in expense from the first quarter of 2015 was
primarily due to a $126 million
increase in restructuring costs, partially offset by lower
stock-based compensation expense and methodology differences.
2016 OUTLOOK
We have seen recent increases in commodity prices, some signs of
improvement in construction equipment in China and better order activity than we
expected at bauma, the world's leading trade fair for many of the
industries we serve. While we are seeing a few positive
signals, other parts of our business remain challenged. As a
result, we have lowered the midpoint of the outlook for 2016 sales
and revenues about 2 percent.
Sales and revenues in 2016 are expected to be in a range of
$40 to $42 billion with a midpoint of
$41 billion. The previous
outlook was a range of $40 to $44
billion with a midpoint of $42
billion. The decline in the midpoint of the sales and
revenues outlook range is a result of several factors that, while
not individually large in the context of the outlook, collectively
add up to about $1 billion.
Those factors include lower transportation sales (rail, marine and
the ending of production of on-highway vocational trucks), lower
mining sales and weaker price realization than previously
expected.
The profit outlook at the midpoint of the sales and revenues
range is now $3.00 per share, or
$3.70 per share excluding
restructuring costs. The previous profit outlook was
$3.50 per share, or $4.00 per share excluding restructuring costs at
the midpoint of the previous sales and revenues outlook. The
expected decline in sales and revenues and an increase in expected
restructuring costs are the primary reasons for the decline in the
profit outlook.
Restructuring costs are now expected to be about $550 million in 2016, up $150 million from the previous outlook. The
decision to end production of on-highway vocational trucks is the
primary reason for the increase in restructuring costs.
2016 REPORTING CHANGES
We made several reporting changes effective January 1, 2016. Our 2015 financial
information has been recast to be consistent with the 2016
presentation.
Pension and OPEB Costs
Effective January 1, 2016, we
changed our accounting principle for recognizing actuarial gains
and losses and expected returns on assets for our pension and OPEB
plans. Gains and losses historically recognized as a
component of equity and amortized to earnings in future periods
will be recognized in earnings in the period in which they
occur. In addition, we changed our policy for recognizing
expected returns on plan assets from a market-related value method
(based on a three-year smoothing of asset returns) to a fair value
method.
Under the new principle, we will immediately recognize actuarial
gains and losses as a mark-to-market gain or loss through earnings
upon the annual remeasurement in the fourth quarter, or on an
interim basis as triggering events warrant remeasurement.
The change in accounting principle has no impact on future
pension or OPEB funding or benefits paid to plan participants.
The impact of the change in accounting principle on our 2015
Results of Operations is presented on page 15. Actuarial
losses (mark-to-market adjustments) for 2015 are shown separately
from the other impacts of the change, which are primarily reversals
of actuarial losses that had been amortized to earnings under the
prior accounting principle.
Segment Reporting
Effective January 1, 2016, we made
the following changes that impacted our segment reporting.
These changes were made to reflect changes in organizational
accountabilities and refinements to our internal reporting.
- Responsibility for remanufacturing of Cat engines and
components and responsibility for on-highway vocational trucks
moved from the All Other segments to Energy &
Transportation.
- Responsibility for forestry and paving products moved from All
Other segments to Construction Industries.
- Responsibility for industrial and waste products moved from All
Other segments to Resource Industries.
- Internal charges for component manufacturing and logistics
services provided by All Other segments to Construction Industries,
Resource Industries and Energy & Transportation in excess of
cost have been adjusted to approximate actual cost, resulting in a
reduction in profit in the All Other segments and corresponding
increases in profit in the other three segments.
- Costs that previously had been included in ME&T Corporate
Items, primarily for company-wide strategies such as information
technology and manufacturing process transformation, have been
included in the ME&T segments that benefit from the costs.
The impacts of both the pension and OPEB and segment reporting
changes on our 2015 quarterly operating profit are presented on
page 16. The pension and OPEB change is reported in ME&T
Corporate Items and had no impact on segment results.
Impact of Pension
and OPEB Accounting Principle Change on Consolidated Statement of
Results of Operations
Twelve Months
Ended December 31, 2015
(Unaudited)
(Dollars in
millions except per share data)
|
|
|
|
Effect of
Accounting Change
|
|
|
|
|
|
|
Previously
Reported
|
|
2015
Actuarial
Losses
|
|
Other
|
|
Recast
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
44,147
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
44,147
|
|
|
|
Revenues of Financial
Products
|
|
2,864
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2,864
|
|
|
|
Total sales and
revenues
|
|
47,011
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
47,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
33,742
|
|
|
|
|
122
|
|
|
|
|
(318)
|
|
|
|
|
33,546
|
|
|
|
Selling, general and
administrative expenses
|
|
5,199
|
|
|
|
|
18
|
|
|
|
|
(266)
|
|
|
|
|
4,951
|
|
|
|
Research and
development expenses
|
|
2,165
|
|
|
|
|
39
|
|
|
|
|
(85)
|
|
|
|
|
2,119
|
|
|
|
Interest expense of
Financial Products
|
|
587
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
587
|
|
|
|
Other operating
(income) expenses
|
|
2,062
|
|
|
|
|
—
|
|
|
|
|
(39)
|
|
|
|
|
2,023
|
|
|
|
Total operating
costs
|
|
43,755
|
|
|
|
|
179
|
|
|
|
|
(708)
|
|
|
|
|
43,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
3,256
|
|
|
|
|
(179)
|
|
|
|
|
708
|
|
|
|
|
3,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
507
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
507
|
|
|
|
Other income
(expense)
|
|
106
|
|
|
|
|
—
|
|
|
|
|
55
|
|
|
|
|
161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,855
|
|
|
|
|
(179)
|
|
|
|
|
763
|
|
|
|
|
3,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
742
|
|
|
|
|
(66)
|
|
|
|
|
240
|
|
|
|
|
916
|
|
|
|
Profit of
consolidated companies
|
|
2,113
|
|
|
|
|
(113)
|
|
|
|
|
523
|
|
|
|
|
2,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
2,113
|
|
|
|
|
(113)
|
|
|
|
|
523
|
|
|
|
|
2,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
11
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
1
|
$
|
2,102
|
|
|
|
$
|
(113)
|
|
|
|
$
|
523
|
|
|
|
$
|
2,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share
|
$
|
3.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share – diluted 2
|
$
|
3.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit attributable
to common stockholders.
|
|
2
|
Diluted by assumed
exercise of stock-based compensation awards using the treasury
stock method.
|
|
2015 Recast Sales
and Revenues by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full Year
2015
|
|
Construction
Industries¹
|
$
5,014
|
|
$
4,803
|
|
$
4,075
|
|
$
3,905
|
|
$ 17,797
|
|
Resource
Industries²
|
1,971
|
|
2,048
|
|
1,842
|
|
1,878
|
|
7,739
|
|
Energy &
Transportation³
|
4,915
|
|
4,708
|
|
4,352
|
|
4,544
|
|
18,519
|
|
All Other
Segments⁴
|
72
|
|
55
|
|
39
|
|
37
|
|
203
|
|
Corporate Items and
Eliminations
|
(11)
|
|
(31)
|
|
(23)
|
|
(46)
|
|
(111)
|
|
Machinery, Energy
& Transportation
|
$ 11,961
|
|
$ 11,583
|
|
$ 10,285
|
|
$ 10,318
|
|
$ 44,147
|
|
Financial Products
Segment
|
795
|
|
785
|
|
752
|
|
746
|
|
3,078
|
|
Corporate Items and
Eliminations
|
(54)
|
|
(51)
|
|
(75)
|
|
(34)
|
|
(214)
|
|
Financial
Products
|
$
741
|
|
$
734
|
|
$
677
|
|
$
712
|
|
$
2,864
|
|
Consolidated Sales
and Revenues
|
$ 12,702
|
|
$ 12,317
|
|
$ 10,962
|
|
$ 11,030
|
|
$ 47,011
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales
|
$
23
|
|
$
26
|
|
$
17
|
|
$
43
|
|
$
109
|
|
2 Does not include
inter-segment sales
|
87
|
|
75
|
|
88
|
|
82
|
|
332
|
|
3 Does not include
inter-segment sales
|
794
|
|
766
|
|
702
|
|
615
|
|
2,877
|
|
4 Does not include
inter-segment sales
|
103
|
|
100
|
|
88
|
|
99
|
|
390
|
|
|
|
|
|
|
|
|
|
|
|
2015 Recast
Operating Profit (Loss) by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full Year
2015
|
|
Construction
Industries
|
$
745
|
|
$
588
|
|
$
354
|
|
$
178
|
|
$
1,865
|
|
Resource
Industries
|
96
|
|
27
|
|
(42)
|
|
(80)
|
|
1
|
|
Energy &
Transportation
|
1,024
|
|
942
|
|
683
|
|
741
|
|
3,390
|
|
All Other
Segments
|
(7)
|
|
(18)
|
|
(11)
|
|
(39)
|
|
(75)
|
|
Corporate Items and
Eliminations
|
(319)
|
|
(322)
|
|
(182)
|
|
(1,088)
|
|
(1,911)
|
|
Machinery, Energy
& Transportation
|
$
1,539
|
|
$
1,217
|
|
$
802
|
|
$
(288)
|
|
$
3,270
|
|
Financial Products
Segment
|
227
|
|
184
|
|
207
|
|
191
|
|
809
|
|
Corporate Items and
Eliminations
|
3
|
|
(1)
|
|
(22)
|
|
(15)
|
|
(35)
|
|
Financial
Products
|
$
230
|
|
$
183
|
|
$
185
|
|
$
176
|
|
$
774
|
|
Consolidating
Adjustments
|
(67)
|
|
(67)
|
|
(62)
|
|
(63)
|
|
(259)
|
|
Consolidated
Operating Profit (Loss)
|
$
1,702
|
|
$
1,333
|
|
$
925
|
|
$
(175)
|
|
$
3,785
|
|
|
|
|
|
|
|
|
|
|
|
QUESTIONS AND
ANSWERS
|
|
|
Q1:
|
Your 2015 profit
changed from what you reported last year. Can you please
explain the change?
|
|
|
|
A:
|
Effective January 1,
2016, we changed how we account for pension and OPEB costs.
Under the new accounting principle, we will recognize actuarial
gains and losses as a mark-to-market gain or loss when they occur
rather than amortizing them to earnings over time. The
presentation of 2015 results has been recast to be consistent with
the new method. The change resulted in an increase to 2015
pre-tax profit of $584 million or $0.68 per share. This is an
accounting principle change only and has no impact on future
pension or OPEB funding or benefits paid to plan
participants. Below is the impact on 2015 profit per
share.
|
|
|
|
First Quarter
2015
|
|
Full Year
2015
|
|
|
|
Previously
|
|
|
|
Previously
|
|
|
|
|
|
Reported
|
|
Recast
|
|
Reported
|
|
Recast
|
|
Profit Per
Share
|
|
|
$1.81
|
|
$2.03
|
|
$3.50
|
|
$4.18
|
|
2015
Actuarial Losses (MTM)
|
|
|
|
|
|
|
|
|
$0.19
|
|
Restructuring Costs
|
|
|
$0.05
|
|
$0.04
|
|
$1.14
|
|
$1.10
|
|
Profit Per Share -
Excluding Restructuring Costs and MTM
|
|
$1.86
|
|
$2.07
|
|
$4.64
|
|
$5.47
|
|
Q2:
|
Can you update us
on the progress of the restructuring actions announced on September
24, 2015?
|
|
|
|
A:
|
Since September 30,
2015, our global workforce is down approximately 8,600, which is a
combination of restructuring actions and production volume-related
actions. Restructuring has resulted in the elimination of
approximately 5,300 positions since the September
24 announcement through the first quarter of 2016. We
are delivering significant cost reduction as a result of these
actions. We continue to contemplate facility consolidations
and closures in order to right size our capacity needs. Since
the September 24 announcement, we've announced the closure or
consolidation of about 15 facilities.
|
|
|
|
Q3:
|
What caused the
price deterioration in the first quarter, especially in
Construction Industries? What do you expect for the balance
of the year?
|
|
|
|
A:
|
We continue to see
competitive pressure that started in the last half of 2015 driven
by excess industry capacity, unfavorable currency pressure and an
overall weak economic environment. We expect the current
competitive pressure to continue for the remainder of the year,
although it is expected most of the year-over-year weakness will
occur in the first half of 2016, as price realization was more
negative in the second half of 2015 compared to the first
half.
|
|
|
|
Q4:
|
Oil prices have
improved from the beginning of 2016. How does this affect
your thinking about shipments of reciprocating engines and turbines
to this important end market for 2016?
|
|
|
|
A:
|
While oil prices have
improved since the beginning of 2016, it is not clear at this time
that the current price level is either sustainable or sufficient to
drive increased demand for equipment. We monitor a number of
factors in addition to oil prices that shape our outlook, including
recent order rates, quotation activity, our current backlog, trends
in retail statistics and discussions with our customers.
Based on all of these factors, we do not see the current oil price
driving a turnaround in demand for our products in 2016.
|
|
|
|
Q5:
|
Can you discuss
changes in dealer inventories in the first quarter of
2016?
|
|
|
|
A:
|
Dealers generally
increase inventories in the first quarter in preparation for the
spring selling season. Dealer machine and engine inventories
increased about $300 million in the first quarter of 2016, compared
with an increase of about $900 million in the first quarter of
2015.
|
|
|
|
Q6:
|
Can you comment on
your order backlog by segment?
|
|
|
|
A:
|
At the end of the
first quarter of 2016, the order backlog was $13.1 billion, about
the same in total and by segment as the end of 2015. Compared
to the first quarter of 2015, the order backlog declined about $3.5
billion with decreases in all segments.
|
|
|
|
Q7:
|
Can you comment on
expense related to your 2016 short-term incentive compensation
plans?
|
|
|
|
A:
|
Short-term incentive
compensation expense is directly related to financial and
operational performance, measured against targets set annually.
First-quarter 2016 expense was about $120 million.
First-quarter 2015 expense was about $215 million.
|
|
|
|
For 2016, our outlook
includes short-term incentive compensation expense of about $480
million.
|
|
|
|
Q8:
|
Can you give us an
update on how Cat Financial is performing?
|
|
|
|
A:
|
Cat Financial's
portfolio continues to perform well overall despite ongoing
weakness in many key end markets. The first quarter of 2016
past dues were 2.78 percent, compared with 3.08 percent in the
first quarter of 2015, with current past dues remaining lower than
historical averages for the first quarter. Write-offs in the
first quarter of 2016 were $31 million, or 0.47 percent of the
average retail portfolio. Although an increase from $12
million in the first quarter of 2015, write-offs were only slightly
above historical averages for the first quarter. We believe
customer risk exposure is well managed, with broad distribution of
portfolio exposure across a global customer base. Cat
Financial continues to work closely with its customers to provide
financing support for new Caterpillar product purchases and to
actively monitor global portfolio health.
|
|
|
|
Q9:
|
Can you comment on
your balance sheet and cash priorities?
|
|
|
|
A:
|
The ME&T
debt-to-capital ratio was 37.7 percent, improved from
39.0 percent at the end of 2015. Our cash and liquidity
positions remain strong with an enterprise cash balance of $5.886
billion as of March 31, 2016. ME&T operating cash flow
for the first quarter of 2016 was $218 million compared with $1.042
billion in the first quarter of 2015. The decline was
primarily due to lower profit.
|
|
|
|
While our long-term
priorities for cash deployment are unchanged, we are very focused
on the continuing strength of our balance sheet to maintain our
credit rating and the dividend.
|
|
GLOSSARY OF
TERMS
|
|
|
1.
|
All Other
Segments – Primarily includes activities such as: the business
strategy, product management, development, and manufacturing of
filters and fluids, undercarriage, tires and rims, ground engaging
tools, fluid transfer products, precision seals and rubber, and
sealing and connecting components primarily for Cat products; 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; digital
investments for new customer and dealer solutions that integrate
data analytics with state-of-the art digital technologies while
transforming the buying experience.
|
|
2.
|
Consolidating
Adjustments – Elimination of transactions between Machinery,
Energy & Transportation and Financial Products.
|
|
3.
|
Construction
Industries – A segment primarily responsible for supporting
customers using machinery in infrastructure, forestry and building
construction applications. Responsibilities include business
strategy, product design, product management and development,
manufacturing, marketing and sales and product support. The
product portfolio includes 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,
forestry and paving products.
|
|
4.
|
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).
|
|
5.
|
Debt-to-Capital
Ratio – A key measure of Machinery, Energy &
Transportation's financial strength used by management. 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 long-term borrowings from Financial
Products.
|
|
6.
|
EAME – A
geographic region including Europe, Africa, the Middle East and the
Commonwealth of Independent States (CIS).
|
|
7.
|
Earning Assets
– Assets consisting primarily of total finance receivables net of
unearned income, plus equipment on operating leases, less
accumulated depreciation at Cat Financial.
|
|
8.
|
Energy &
Transportation – A segment primarily responsible for supporting
customers using reciprocating engines, turbines, diesel-electric
locomotives and related parts across industries serving power
generation, industrial, oil and gas and transportation
applications, including marine and rail-related businesses.
Responsibilities include business strategy, product design, product
management and development, manufacturing, marketing and sales and
product support of 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 remanufacturing
of Cat® engines and components and remanufacturing services for
other companies; the business strategy, product design, product
management and development, manufacturing, remanufacturing, leasing
and service of diesel-electric locomotives and components and other
rail-related products and services and product support of
on-highway vocational trucks for North America.
|
|
9.
|
Financial Products
Segment – Provides financing 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.
|
|
10.
|
Latin America
– A geographic region including Central and South American
countries and Mexico.
|
|
11.
|
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.
|
|
12.
|
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.
|
|
13.
|
Machinery, Energy
& Transportation Other Operating (Income) Expenses
– Comprised primarily of gains/losses on disposal of
long-lived assets, gains/losses on divestitures and legal
settlements and accruals. Restructuring costs classified as
other operating expenses on the Results of Operations are presented
separately on the Operating Profit Comparison.
|
|
14.
|
Pension and other
postemployment benefit (OPEB) costs – Costs for the
company's defined benefit pension and postretirement benefit
plans.
|
|
15.
|
Period Costs –
Includes period manufacturing costs, selling, general and
administrative (SG&A) and research and development (R&D)
expenses excluding the impact of currency. 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. SG&A and R&D costs are not
linked to the production of goods or services and include
marketing, legal and financial services and the development of new
and significant improvements in products or processes.
|
|
16.
|
Price
Realization – The impact of net price changes excluding
currency and new product introductions. Price realization
includes geographic mix of sales, which is the impact of changes in
the relative weighting of sales prices between geographic
regions.
|
|
17.
|
Resource
Industries – A segment primarily responsible for supporting
customers using machinery in mining, quarry, waste, and material
handling applications. Responsibilities include business strategy,
product design, product management and development, manufacturing,
marketing and sales and product support. The product portfolio
includes large track-type tractors, large mining trucks, hard rock
vehicles, longwall miners, electric rope shovels, draglines,
hydraulic shovels, track and rotary drills, highwall miners, large
wheel loaders, off-highway trucks, articulated trucks, wheel
tractor scrapers, wheel dozers, landfill compactors, soil
compactors, material handlers, continuous miners, scoops and
haulers, hardrock continuous mining systems, 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.
|
|
18.
|
Restructuring
Costs – Primarily costs for employee separation costs,
long-lived asset impairments and contract terminations. These
costs are included in Other Operating (Income) Expenses.
Restructuring costs also include other exit-related costs primarily
for accelerated depreciation and equipment relocation (primarily
included in Cost of goods sold) and sales discounts and payments to
dealers and customers related to discontinued products (included in
Sales of ME&T).
|
|
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.
|
|
20.
|
Variable
Manufacturing Costs – Represents volume-adjusted costs
excluding the impact of currency. 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.
|
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. The non-GAAP financial measures we
use have no standardized meaning prescribed by U.S. GAAP and
therefore are unlikely to be comparable to the calculation of
similar measures for other companies. Management does not
intend these items to be considered in isolation or substituted for
the related GAAP
measure.
Profit Per Share Excluding Restructuring Costs and
Mark-to-Market Losses
We incurred significant restructuring costs in 2015 and expect
to incur additional restructuring costs in 2016. We believe
it is important to separately quantify the profit per share impact
of restructuring costs in order for our 2016 results and the 2016
outlook to be meaningful to our readers. We have also
provided 2015 profit per share excluding restructuring costs
comparable to the 2016 presentation. In addition, we believe
it is important to separately quantify the per share impact of the
pension and OPEB mark-to-market losses resulting from plan
remeasurements for our 2015 results to be meaningful. We have
provided recast 2015 results comparable to the 2016
presentation. Reconciliations of profit per share excluding
restructuring costs and mark-to-market losses (2015 only) to the
most directly comparable GAAP measure, diluted profit per share,
are as follows:
|
|
First
Quarter
|
|
2016
Outlook
|
|
|
2015
|
|
2016
|
|
Original
1
|
|
Current
2
|
|
Profit (Loss) per
share
|
|
$2.03
|
|
$0.46
|
|
$3.50
|
|
$3.00
|
|
Per share
restructuring costs 3
|
|
$0.04
|
|
$0.21
|
|
$0.50
|
|
$0.70
|
|
Profit per share
excluding restructuring costs
|
|
$2.07
|
|
$0.67
|
|
$4.00
|
|
$3.70
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
Full Year
2015
|
|
|
Previously
Reported
|
|
Recast
|
|
Previously
Reported
|
|
Recast
|
|
Profit (Loss) per
share
|
$1.81
|
|
$2.03
|
|
$3.50
|
|
$4.18
|
|
Per share
mark-to-market losses
|
-
|
|
-
|
|
-
|
|
$0.19
|
|
Per share
restructuring costs 3
|
$0.05
|
|
$0.04
|
|
$1.14
|
|
$1.10
|
|
Profit per share
excluding restructuring costs and mark-to-market losses
|
$1.86
|
|
$2.07
|
|
$4.64
|
|
$5.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 2016
Sales and Revenues Outlook in a range of $40-44 billion (as of
January 28, 2016). Profit per share at midpoint.
|
|
2 2016
Sales and Revenues Outlook in a range of $40-42 billion (as of
April 22, 2016). Profit per share at midpoint.
|
|
1-2 2016
Outlook does not include any impact from mark-to-market gains or
losses resulting from pension and OPEB plan
remeasurements.
|
|
3At
effective tax rate excluding discrete items
|
|
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 22-28 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
Inc.
Condensed
Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in
millions except per share data)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
8,780
|
|
|
|
$
|
11,961
|
|
|
|
Revenues of Financial
Products
|
|
681
|
|
|
|
|
741
|
|
|
|
Total sales and
revenues
|
|
9,461
|
|
|
|
|
12,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
6,822
|
|
|
|
|
8,760
|
|
|
|
Selling, general and
administrative expenses
|
|
1,088
|
|
|
|
|
1,249
|
|
|
|
Research and
development expenses
|
|
508
|
|
|
|
|
524
|
|
|
|
Interest expense of
Financial Products
|
|
152
|
|
|
|
|
150
|
|
|
|
Other operating
(income) expenses
|
|
397
|
|
|
|
|
317
|
|
|
|
Total operating
costs
|
|
8,967
|
|
|
|
|
11,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
494
|
|
|
|
|
1,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
129
|
|
|
|
|
129
|
|
|
|
Other income
(expense)
|
|
—
|
|
|
|
|
194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
365
|
|
|
|
|
1,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
92
|
|
|
|
|
521
|
|
|
|
Profit of
consolidated companies
|
|
273
|
|
|
|
|
1,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
(1)
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
272
|
|
|
|
|
1,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit (loss)
attributable to noncontrolling interests
|
|
1
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
1
|
$
|
271
|
|
|
|
$
|
1,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share
|
$
|
0.46
|
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share – diluted 2
|
$
|
0.46
|
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
582.8
|
|
|
|
|
604.9
|
|
|
|
-
Diluted2
|
|
587.7
|
|
|
|
|
612.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
March
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
5,886
|
|
|
|
$
|
6,460
|
|
|
|
|
Receivables - trade
and other
|
|
6,856
|
|
|
|
|
6,695
|
|
|
|
|
Receivables -
finance
|
|
9,310
|
|
|
|
|
8,991
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
1,847
|
|
|
|
|
1,662
|
|
|
|
|
Inventories
|
|
9,849
|
|
|
|
|
9,700
|
|
|
|
Total current
assets
|
|
33,748
|
|
|
|
|
33,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
15,935
|
|
|
|
|
16,090
|
|
|
|
Long-term receivables
- trade and other
|
|
1,159
|
|
|
|
|
1,170
|
|
|
|
Long-term receivables
- finance
|
|
13,527
|
|
|
|
|
13,651
|
|
|
|
Investments in
unconsolidated affiliated companies
|
|
246
|
|
|
|
|
246
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
2,486
|
|
|
|
|
2,489
|
|
|
|
Intangible
assets
|
|
2,741
|
|
|
|
|
2,821
|
|
|
|
Goodwill
|
|
6,710
|
|
|
|
|
6,615
|
|
|
|
Other
assets
|
|
1,755
|
|
|
|
|
1,752
|
|
|
|
Total
assets
|
$
|
78,307
|
|
|
|
$
|
78,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
13
|
|
|
|
$
|
9
|
|
|
|
|
|
-- Financial
Products
|
|
7,804
|
|
|
|
|
6,958
|
|
|
|
|
Accounts
payable
|
|
5,101
|
|
|
|
|
5,023
|
|
|
|
|
Accrued
expenses
|
|
3,142
|
|
|
|
|
3,116
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
1,158
|
|
|
|
|
1,994
|
|
|
|
|
Customer
advances
|
|
1,328
|
|
|
|
|
1,146
|
|
|
|
|
Dividends
Payable
|
|
—
|
|
|
|
|
448
|
|
|
|
|
Other current
liabilities
|
|
1,593
|
|
|
|
|
1,671
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
568
|
|
|
|
|
517
|
|
|
|
|
|
-- Financial
Products
|
|
5,508
|
|
|
|
|
5,360
|
|
|
|
Total current
liabilities
|
|
26,215
|
|
|
|
|
26,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
8,914
|
|
|
|
|
8,960
|
|
|
|
|
|
-- Financial
Products
|
|
15,556
|
|
|
|
|
16,209
|
|
|
|
Liability for
postemployment benefits
|
|
8,600
|
|
|
|
|
8,843
|
|
|
|
Other
liabilities
|
|
3,269
|
|
|
|
|
3,203
|
|
|
|
Total
liabilities
|
|
62,554
|
|
|
|
|
63,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,247
|
|
|
|
|
5,238
|
|
|
|
Treasury
stock
|
|
(17,595)
|
|
|
|
|
(17,640)
|
|
|
|
Profit employed in
the business
|
|
29,517
|
|
|
|
|
29,246
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,493)
|
|
|
|
|
(2,035)
|
|
|
|
Noncontrolling
interests
|
|
77
|
|
|
|
|
76
|
|
|
|
Total
stockholders' equity
|
|
15,753
|
|
|
|
|
14,885
|
|
|
|
Total liabilities
and stockholders' equity
|
$
|
78,307
|
|
|
|
$
|
78,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of
dollars)
|
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
272
|
|
|
|
$
|
1,248
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
740
|
|
|
|
|
753
|
|
|
|
|
Other
|
|
269
|
|
|
|
|
(88)
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
14
|
|
|
|
|
6
|
|
|
|
|
Inventories
|
|
(74)
|
|
|
|
|
(89)
|
|
|
|
|
Accounts
payable
|
|
211
|
|
|
|
|
228
|
|
|
|
|
Accrued
expenses
|
|
33
|
|
|
|
|
35
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(852)
|
|
|
|
|
(1,027)
|
|
|
|
|
Customer
advances
|
|
174
|
|
|
|
|
25
|
|
|
|
|
Other assets –
net
|
|
(145)
|
|
|
|
|
365
|
|
|
|
|
Other liabilities –
net
|
|
(153)
|
|
|
|
|
(186)
|
|
|
|
Net cash provided by
(used for) operating activities
|
|
489
|
|
|
|
|
1,270
|
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(357)
|
|
|
|
|
(437)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(383)
|
|
|
|
|
(389)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
173
|
|
|
|
|
167
|
|
|
|
Additions to finance
receivables
|
|
(2,014)
|
|
|
|
|
(2,122)
|
|
|
|
Collections of
finance receivables
|
|
2,047
|
|
|
|
|
2,241
|
|
|
|
Proceeds from sale of
finance receivables
|
|
10
|
|
|
|
|
43
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(12)
|
|
|
|
|
(29)
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
—
|
|
|
|
|
167
|
|
|
|
Proceeds from sale of
securities
|
|
49
|
|
|
|
|
83
|
|
|
|
Investments in
securities
|
|
(62)
|
|
|
|
|
(70)
|
|
|
|
Other –
net
|
|
(23)
|
|
|
|
|
(38)
|
|
|
|
Net cash provided by
(used for) investing activities
|
|
(572)
|
|
|
|
|
(384)
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(448)
|
|
|
|
|
(424)
|
|
|
|
Distribution to
noncontrolling interests
|
|
(1)
|
|
|
|
|
(7)
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
(45)
|
|
|
|
|
32
|
|
|
|
Treasury shares
purchased
|
|
—
|
|
|
|
|
(400)
|
|
|
|
Excess tax benefit
from stock-based compensation
|
|
1
|
|
|
|
|
17
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
1,211
|
|
|
|
|
1,529
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(1,706)
|
|
|
|
|
(2,319)
|
|
|
|
Short-term borrowings
– net (original maturities three months or less)
|
|
486
|
|
|
|
|
950
|
|
|
|
Net cash provided by
(used for) financing activities
|
|
(502)
|
|
|
|
|
(622)
|
|
|
|
Effect of exchange
rate changes on cash
|
|
11
|
|
|
|
|
(42)
|
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
(574)
|
|
|
|
|
222
|
|
|
|
Cash and short-term
investments at beginning of period
|
|
6,460
|
|
|
|
|
7,341
|
|
|
|
Cash and short-term
investments at end of period
|
$
|
5,886
|
|
|
|
$
|
7,563
|
|
|
|
|
All short-term
investments, which consist primarily of highly liquid investments
with original maturities of three months or less, are considered to
be cash equivalents.
|
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Three Months Ended March 31, 2016
(Unaudited)
(Millions of dollars)
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy
&
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
8,780
|
|
|
|
$
|
8,780
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
681
|
|
|
|
|
—
|
|
|
|
|
759
|
|
|
|
|
(78)
|
2
|
|
Total sales and
revenues
|
|
9,461
|
|
|
|
|
8,780
|
|
|
|
|
759
|
|
|
|
|
(78)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
6,822
|
|
|
|
|
6,822
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Selling, general and
administrative expenses
|
|
1,088
|
|
|
|
|
955
|
|
|
|
|
139
|
|
|
|
|
(6)
|
3
|
|
Research and
development expenses
|
|
508
|
|
|
|
|
508
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
152
|
|
|
|
|
—
|
|
|
|
|
155
|
|
|
|
|
(3)
|
4
|
|
Other operating
(income) expenses
|
|
397
|
|
|
|
|
105
|
|
|
|
|
298
|
|
|
|
|
(6)
|
3
|
|
Total operating
costs
|
|
8,967
|
|
|
|
|
8,390
|
|
|
|
|
592
|
|
|
|
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
494
|
|
|
|
|
390
|
|
|
|
|
167
|
|
|
|
|
(63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
129
|
|
|
|
|
140
|
|
|
|
|
—
|
|
|
|
|
(11)
|
4
|
|
Other income
(expense)
|
|
—
|
|
|
|
|
(52)
|
|
|
|
|
—
|
|
|
|
|
52
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
365
|
|
|
|
|
198
|
|
|
|
|
167
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
92
|
|
|
|
|
40
|
|
|
|
|
52
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
273
|
|
|
|
|
158
|
|
|
|
|
115
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
(1)
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
114
|
|
|
|
|
—
|
|
|
|
|
(114)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
272
|
|
|
|
|
271
|
|
|
|
|
115
|
|
|
|
|
(114)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
1
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
271
|
|
|
|
$
|
271
|
|
|
|
$
|
114
|
|
|
|
$
|
(114)
|
|
|
|
|
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 March 31, 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
|
$
|
11,961
|
|
|
|
$
|
11,961
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
741
|
|
|
|
|
—
|
|
|
|
|
813
|
|
|
|
|
(72)
|
2
|
|
Total sales and
revenues
|
|
12,702
|
|
|
|
|
11,961
|
|
|
|
|
813
|
|
|
|
|
(72)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,760
|
|
|
|
|
8,760
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Selling, general and
administrative expenses
|
|
1,249
|
|
|
|
|
1,114
|
|
|
|
|
133
|
|
|
|
|
2
|
3
|
|
Research and
development expenses
|
|
524
|
|
|
|
|
524
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
150
|
|
|
|
|
—
|
|
|
|
|
151
|
|
|
|
|
(1)
|
4
|
|
Other operating
(income) expenses
|
|
317
|
|
|
|
|
24
|
|
|
|
|
299
|
|
|
|
|
(6)
|
3
|
|
Total operating
costs
|
|
11,000
|
|
|
|
|
10,422
|
|
|
|
|
583
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,702
|
|
|
|
|
1,539
|
|
|
|
|
230
|
|
|
|
|
(67)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
129
|
|
|
|
|
139
|
|
|
|
|
—
|
|
|
|
|
(10)
|
4
|
|
Other income
(expense)
|
|
194
|
|
|
|
|
138
|
|
|
|
|
(1)
|
|
|
|
|
57
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
1,767
|
|
|
|
|
1,538
|
|
|
|
|
229
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
521
|
|
|
|
|
453
|
|
|
|
|
68
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
1,246
|
|
|
|
|
1,085
|
|
|
|
|
161
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
2
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
159
|
|
|
|
|
—
|
|
|
|
|
(159)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,248
|
|
|
|
|
1,246
|
|
|
|
|
161
|
|
|
|
|
(159)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
3
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,245
|
|
|
|
$
|
1,245
|
|
|
|
$
|
159
|
|
|
|
$
|
(159)
|
|
|
|
|
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 Three
Months Ended March 31, 2016
(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
|
$
|
272
|
|
|
|
$
|
271
|
|
|
|
$
|
115
|
|
|
|
$
|
(114)
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
740
|
|
|
|
|
525
|
|
|
|
|
215
|
|
|
|
|
—
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(107)
|
|
|
|
|
—
|
|
|
|
|
107
|
3
|
|
|
Other
|
|
269
|
|
|
|
|
204
|
|
|
|
|
16
|
|
|
|
|
49
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
14
|
|
|
|
|
41
|
|
|
|
|
20
|
|
|
|
|
(47)
|
4,5
|
|
|
Inventories
|
|
(74)
|
|
|
|
|
(74)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Accounts
payable
|
|
211
|
|
|
|
|
288
|
|
|
|
|
2
|
|
|
|
|
(79)
|
4
|
|
|
Accrued
expenses
|
|
33
|
|
|
|
|
34
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(852)
|
|
|
|
|
(831)
|
|
|
|
|
(21)
|
|
|
|
|
—
|
|
|
|
Customer
advances
|
|
174
|
|
|
|
|
174
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other assets -
net
|
|
(145)
|
|
|
|
|
(118)
|
|
|
|
|
17
|
|
|
|
|
(44)
|
4
|
|
|
Other liabilities -
net
|
|
(153)
|
|
|
|
|
(189)
|
|
|
|
|
(8)
|
|
|
|
|
44
|
4
|
|
Net cash provided by
(used for) operating activities
|
|
489
|
|
|
|
|
218
|
|
|
|
|
355
|
|
|
|
|
(84)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(357)
|
|
|
|
|
(356)
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
Expenditures for
equipment leased to others
|
|
(383)
|
|
|
|
|
(23)
|
|
|
|
|
(369)
|
|
|
|
|
9
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
173
|
|
|
|
|
21
|
|
|
|
|
159
|
|
|
|
|
(7)
|
4
|
|
Additions to finance
receivables
|
|
(2,014)
|
|
|
|
|
—
|
|
|
|
|
(2,662)
|
|
|
|
|
648
|
5
|
|
Collections of
finance receivables
|
|
2,047
|
|
|
|
|
—
|
|
|
|
|
2,849
|
|
|
|
|
(802)
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(229)
|
|
|
|
|
229
|
5
|
|
Proceeds from sale of
finance receivables
|
|
10
|
|
|
|
|
—
|
|
|
|
|
10
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(927)
|
|
|
|
|
(1,000)
|
|
|
|
|
1,927
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(12)
|
|
|
|
|
(12)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Proceeds from sale of
securities
|
|
49
|
|
|
|
|
4
|
|
|
|
|
45
|
|
|
|
|
—
|
|
|
Investments in
securities
|
|
(62)
|
|
|
|
|
(5)
|
|
|
|
|
(57)
|
|
|
|
|
—
|
|
|
Other -
net
|
|
(23)
|
|
|
|
|
(23)
|
|
|
|
|
(7)
|
|
|
|
|
7
|
8
|
|
Net cash provided by
(used for) investing activities
|
|
(572)
|
|
|
|
|
(1,321)
|
|
|
|
|
(1,262)
|
|
|
|
|
2,011
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(448)
|
|
|
|
|
(448)
|
|
|
|
|
(7)
|
|
|
|
|
7
|
7
|
|
Distribution to
noncontrolling interests
|
|
(1)
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Common stock issued,
including treasury shares reissued
|
|
(45)
|
|
|
|
|
(45)
|
|
|
|
|
7
|
|
|
|
|
(7)
|
8
|
|
Excess tax benefit
from stock-based compensation
|
|
1
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
1,000
|
|
|
|
|
927
|
|
|
|
|
(1,927)
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
1,211
|
|
|
|
|
1
|
|
|
|
|
1,210
|
|
|
|
|
—
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(1,706)
|
|
|
|
|
(3)
|
|
|
|
|
(1,703)
|
|
|
|
|
—
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
486
|
|
|
|
|
4
|
|
|
|
|
482
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(502)
|
|
|
|
|
509
|
|
|
|
|
916
|
|
|
|
|
(1,927)
|
|
|
Effect of exchange
rate changes on cash
|
|
11
|
|
|
|
|
(2)
|
|
|
|
|
13
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
(574)
|
|
|
|
|
(596)
|
|
|
|
|
22
|
|
|
|
|
—
|
|
|
Cash and short-term
investments at beginning of period
|
|
6,460
|
|
|
|
|
5,340
|
|
|
|
|
1,120
|
|
|
|
|
—
|
|
|
Cash and short-term
investments at end of period
|
$
|
5,886
|
|
|
|
$
|
4,744
|
|
|
|
$
|
1,142
|
|
|
|
$
|
—
|
|
|
|
|
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 change
in investment and common stock related to Financial
Products.
|
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the Three
Months Ended March 31, 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
|
$
|
1,248
|
|
|
|
$
|
1,246
|
|
|
|
$
|
161
|
|
|
|
$
|
(159)
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
753
|
|
|
|
|
530
|
|
|
|
|
223
|
|
|
|
|
—
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(59)
|
|
|
|
|
—
|
|
|
|
|
59
|
3
|
|
|
Other
|
|
(88)
|
|
|
|
|
(55)
|
|
|
|
|
(87)
|
|
|
|
|
54
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
6
|
|
|
|
|
54
|
|
|
|
|
(34)
|
|
|
|
|
(14)
|
4,5
|
|
|
Inventories
|
|
(89)
|
|
|
|
|
(85)
|
|
|
|
|
—
|
|
|
|
|
(4)
|
4
|
|
|
Accounts
payable
|
|
228
|
|
|
|
|
169
|
|
|
|
|
43
|
|
|
|
|
16
|
4
|
|
|
Accrued
expenses
|
|
35
|
|
|
|
|
26
|
|
|
|
|
9
|
|
|
|
|
—
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(1,027)
|
|
|
|
|
(1,009)
|
|
|
|
|
(18)
|
|
|
|
|
—
|
|
|
|
Customer
advances
|
|
25
|
|
|
|
|
25
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other assets -
net
|
|
365
|
|
|
|
|
246
|
|
|
|
|
36
|
|
|
|
|
83
|
4
|
|
|
Other liabilities -
net
|
|
(186)
|
|
|
|
|
(46)
|
|
|
|
|
(57)
|
|
|
|
|
(83)
|
4
|
|
Net cash provided by
(used for) operating activities
|
|
1,270
|
|
|
|
|
1,042
|
|
|
|
|
276
|
|
|
|
|
(48)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(437)
|
|
|
|
|
(435)
|
|
|
|
|
(2)
|
|
|
|
|
—
|
|
|
Expenditures for
equipment leased to others
|
|
(389)
|
|
|
|
|
(42)
|
|
|
|
|
(355)
|
|
|
|
|
8
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
167
|
|
|
|
|
6
|
|
|
|
|
162
|
|
|
|
|
(1)
|
4
|
|
Additions to finance
receivables
|
|
(2,122)
|
|
|
|
|
—
|
|
|
|
|
(2,901)
|
|
|
|
|
779
|
5,
8
|
|
Collections of
finance receivables
|
|
2,241
|
|
|
|
|
—
|
|
|
|
|
2,954
|
|
|
|
|
(713)
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
118
|
|
|
|
|
(118)
|
5
|
|
Proceeds from sale of
finance receivables
|
|
43
|
|
|
|
|
—
|
|
|
|
|
43
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(8)
|
|
|
|
|
—
|
|
|
|
|
8
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(29)
|
|
|
|
|
(29)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
167
|
|
|
|
|
174
|
|
|
|
|
—
|
|
|
|
|
(7)
|
8
|
|
Proceeds from sale of
securities
|
|
83
|
|
|
|
|
3
|
|
|
|
|
80
|
|
|
|
|
—
|
|
|
Investments in
securities
|
|
(70)
|
|
|
|
|
(4)
|
|
|
|
|
(66)
|
|
|
|
|
—
|
|
|
Other -
net
|
|
(38)
|
|
|
|
|
4
|
|
|
|
|
(42)
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(384)
|
|
|
|
|
(331)
|
|
|
|
|
(9)
|
|
|
|
|
(44)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(424)
|
|
|
|
|
(424)
|
|
|
|
|
(100)
|
|
|
|
|
100
|
7
|
|
Distribution to
noncontrolling interests
|
|
(7)
|
|
|
|
|
(7)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Common stock issued,
including treasury shares reissued
|
|
32
|
|
|
|
|
32
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Treasury shares
purchased
|
|
(400)
|
|
|
|
|
(400)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Excess tax benefit
from stock-based compensation
|
|
17
|
|
|
|
|
17
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
—
|
|
|
|
|
8
|
|
|
|
|
(8)
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
1,529
|
|
|
|
|
2
|
|
|
|
|
1,527
|
|
|
|
|
—
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(2,319)
|
|
|
|
|
(6)
|
|
|
|
|
(2,313)
|
|
|
|
|
—
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
950
|
|
|
|
|
—
|
|
|
|
|
950
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(622)
|
|
|
|
|
(786)
|
|
|
|
|
72
|
|
|
|
|
92
|
|
|
Effect of exchange
rate changes on cash
|
|
(42)
|
|
|
|
|
(24)
|
|
|
|
|
(18)
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
222
|
|
|
|
|
(99)
|
|
|
|
|
321
|
|
|
|
|
—
|
|
|
Cash and short-term
investments at beginning of period
|
|
7,341
|
|
|
|
|
6,317
|
|
|
|
|
1,024
|
|
|
|
|
—
|
|
|
Cash and short-term
investments at end of period
|
$
|
7,563
|
|
|
|
$
|
6,218
|
|
|
|
$
|
1,345
|
|
|
|
$
|
—
|
|
|
|
|
|
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.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/caterpillar-reports-first-quarter-2016-results-300255858.html
SOURCE Caterpillar Inc.