Summary
Caterpillar Inc. reported its third-quarter and nine-month results for 2019. For the third quarter, total sales and revenues decreased by 6% to $12.76 billion, primarily driven by lower sales volume due to dealers reducing inventory, though partially offset by higher end-user demand and favorable price realization across segments. Profit per share for the quarter was $2.66, down from $2.88 in the prior year's third quarter, largely due to lower sales volume. For the first nine months of 2019, total sales and revenues increased slightly by 1% to $40.66 billion, while profit per share rose to $8.75 from $8.45 in the comparable period. The company highlighted a $1.5 billion discretionary pension contribution made during the third quarter, which impacted operating cash flow. Despite the quarterly sales decline, Caterpillar maintained its operating profit margin at 15.8% and continued to return capital to shareholders through share repurchases and dividends. The company's financial products segment showed revenue growth and increased profit, driven by higher financing rates and improved net yield on earning assets.
Financial Highlights
52 data points| Revenue | $12.76B |
| Cost of Revenue | $8.57B |
| Gross Profit | $3.40B |
| R&D Expenses | $431.00M |
| SG&A Expenses | $1.25B |
| Operating Expenses | $10.74B |
| Operating Income | $2.02B |
| Net Income | $1.49B |
| EPS (Basic) | $2.69 |
| EPS (Diluted) | $2.66 |
| Shares Outstanding (Basic) | 556.30M |
| Shares Outstanding (Diluted) | 561.20M |
Key Highlights
- 1Total sales and revenues for the third quarter of 2019 were $12.76 billion, a 6% decrease compared to the third quarter of 2018, primarily due to lower sales volume and dealer inventory adjustments.
- 2Profit per share for the third quarter of 2019 was $2.66, a decrease from $2.88 in the prior year's third quarter.
- 3For the nine months ended September 30, 2019, total sales and revenues increased 1% to $40.66 billion, with profit per share rising to $8.75 from $8.45 in the same period last year.
- 4Operating profit margin remained stable at 15.8% for both the third quarter of 2019 and 2018.
- 5The company made a significant $1.5 billion discretionary pension contribution in the third quarter of 2019.
- 6Financial Products segment revenues increased 2% in the third quarter, and profit for the segment grew 8%, indicating resilience in the financing and insurance operations.
- 7Caterpillar repurchased $1.2 billion of its common stock in the third quarter and paid $0.6 billion in dividends.