Summary
Caterpillar Inc. reported a significant year-over-year decline in sales and revenues for 2020, with a total of $41.748 billion, a 22% decrease from 2019. This downturn was primarily attributed to lower end-user demand for equipment and services, exacerbated by the global economic impact of the COVID-19 pandemic, and a reduction in dealer inventories. Profit per share also saw a substantial decrease, from $10.74 in 2019 to $5.46 in 2020. The company's primary segments, Construction Industries, Resource Industries, and Energy & Transportation, all experienced sales declines. The Financial Products segment also saw a revenue decrease. Despite the challenges, Caterpillar maintained a strong liquidity position, ending 2020 with $9.4 billion in enterprise cash and over $14 billion in available liquidity sources. The company's strategic priorities include maintaining a strong financial position, funding operational requirements, and returning capital to shareholders through dividends and share repurchases, though share repurchases were temporarily suspended in the latter half of 2020 due to economic uncertainty.
Financial Highlights
55 data points| Revenue | $41.75B |
| Cost of Revenue | $29.08B |
| Gross Profit | $12.67B |
| R&D Expenses | $1.42B |
| SG&A Expenses | $4.64B |
| Operating Expenses | $37.20B |
| Operating Income | $4.55B |
| Net Income | $3.00B |
| EPS (Basic) | $5.51 |
| EPS (Diluted) | $5.46 |
| Shares Outstanding (Basic) | 544.10M |
| Shares Outstanding (Diluted) | 548.60M |
Key Highlights
- 12020 sales and revenues decreased by 22% to $41.748 billion compared to $53.800 billion in 2019.
- 2Profit per share decreased significantly to $5.46 in 2020 from $10.74 in 2019.
- 3All three primary segments (Construction Industries, Resource Industries, and Energy & Transportation) experienced lower sales volumes due to reduced end-user demand and inventory adjustments.
- 4The company maintained a strong liquidity position with $9.4 billion in enterprise cash and over $14 billion in available liquidity sources at the end of 2020.
- 5Short-term incentive compensation expense was suspended for much of 2020, contributing to lower SG&A and manufacturing costs, but also impacting profit.
- 6Dealers reduced machine and engine inventories by approximately $2.9 billion in 2020, a reversal from an increase in 2019.
- 7The company ended 2020 with $9.4 billion in enterprise cash and more than $14 billion of available liquidity sources, indicating financial resilience despite reduced sales.