Caterpillar's first quarter sales and revenue declined 21 percent in the first three months of this year, when compared to the same stretch of 2019.
The earthmoving giant saw sales and revenues of $10.6 billion, a decrease from $13.5 billion last year. Profit-per-share declined 39 percent year-over-year, to $1.98 from $3.25 in 2019.
The company still maintains a positive profit margin of 13.2 percent. The company has $7.1 billion in cash and an additional $10.5 billion available through credit lines.
"We have taken decisive actions to enhance our strong financial position, while continuing to execute our strategy for profitable growth," said CEO Jim Umpleby in a prepared statement. "Caterpillar has faced and overcome many challenges in our 95-year history. Our goal is to emerge from the pandemic an even stronger company."
Most Caterpillar's facilities across the U.S. are deemed essential during stay-at-home orders, though the company has laid off employees and temporarily shut down facilities. The company also froze pay increases for salaried workers and axed incentive bonuses. The company said some temporarily-closed facilities have reopened, but warned similar moves could happen again "if warranted by business conditions."
Caterpillar said it has implemented social distancing and increased cleaning at its facilities.
The company withdrew its 2020 financial outlook on March 26 due to the deepening COVID-19 crisis. Caterpillar said Tuesday it is not issuing a revised outlook yet as economic conditions remain uncertain.
We’re living in unprecedented times when information changes by the minute. WCBU will continue to be here for you, keeping you up-to-date with the live, local and trusted news you need. Help ensure WCBU can continue with its in-depth and comprehensive COVID-19 coverage as the situation evolves by making a contribution.
