Caterpillar’s year end report shows sales and revenue down 15% for last year and 29% from its peak in 2012.
That accounts for a continued decline in equipment sales in the fourth quarter.
The company’s annual outlook for 2016 was also reduced and anticipates another 10% decline.
Mike DeWalt is the Vice President of Caterpillar’s Strategic Services Division. He says the company's 2016 outlook is reflective of where things stand in the world.
“Low commodities prices. Weak economies, particularly in the developing world: China, Russia, Brazil. It’s pretty tough in those places right now. So I think we are not banking on a big turnaround.”
Regardless, the 2015 results still topped Wall Street expectations. DeWalt says the company still has a healthy dividend yield:
“Based on where the share price is, it’s not far off 5%, which is pretty high and so people are concerned are you going to cut your dividend? Are you be able to pay it? We certainly think we are going to be able to pay it.”
The Peoria based company is in the process of a massive restructuring effort through 2018. It includes cutting up to 10,000 jobs and reducing Caterpillar’s global factory footprint.
More restructuring cuts are expected to be announced today.