Cat Q3 Down 23%
By Mike Osenga27 October 2020
Caterpillar Inc. has announced third-quarter 2020 sales and revenues of $9.9 billion, a 23% decrease compared with $12.8 billion in the third quarter of 2019. The decline was primarily due to lower sales volume driven by lower end-user demand for equipment and services, the company said.
Third-quarter 2020 profit per share was $1.22, compared with $2.66 profit per share in the third quarter of 2019. Profit per share in the third quarter of 2020 included pre-tax remeasurement losses of $77 million, or $0.12 per share, resulting from the settlements of pension obligations. Profit per share benefited from lower than expected taxes in the quarter.
Operating profit margin was 10.0% for the third quarter of 2020, compared with 15.8% for the third quarter of 2019.
Broken out by its operating groups, overall Construction Industries was down 23%, Resource Industries was down 21%, Energy & Transportation (which is most of Cat’s engine operations) was down 24%, and Financial Products was down 16%.
Geographically, North America was down 30%, Latin America was down 36%, Europe-Africa-Middle East (EAME) was down 14%, and Asia/Pacific down 8%.
“I’m proud of our global team’s performance as we continue to safely navigate the pandemic while remaining firmly committed to serving our customers,” said Caterpillar Chairman and CEO Jim Umpleby. “Our third-quarter results largely aligned with our expectations, and we’re encouraged by positive signs in certain industries and geographies. We’re executing our strategy and are ready to respond quickly to changing market conditions.”