Revenues down 22% for Caterpillar

Caterpillar has published its full year financial results, which show its 2020 sales and revenues figure of US$41.7 billion was down 22% on 2019’s $53.8 billion. The company said the lower sales were a result of lower end-user demand and the impact from changes in dealer inventories.

The fourth quarter of 2020 saw the company posting combined segment revenues of US$11.2 billion. This is down 15% from US$13.1 billion for the fourth quarter of 2019.

The company’s Construction Industries segment reported sales and revenues of US$4.5 billion, down 10% from US$5.02 billion for the same time last year.

Regionally, the segment achieved sales of US$1.8 billion in North America, 16% lower than in the fourth quarter of 2019. While its Latin America revenues were down 21% compared to the previous year, in the Asia Pacific region the company saw sales of US$1.41 billion, just 4% less than in 2019.

When compared to the fourth quarter of 2019, the company’s Resource Industries segment fared slightly better. Including quarrying and mining equipment, its 2020 Q4 sales amounted to $2.18 billion, a reduction of 9% on 2019’s fourth quarter. However, regionally the figures looked encouraging, with sales up 8% in the Asia/Pacific market and 26% in the Latin America region.

Jim Umpleby, Caterpillar Chairman & CEO, said, “I’m proud of our global team’s continued resilience in safely navigating Covid-19 while continuing to provide the essential products and services the world needs. Our fourth-quarter and full-year results reflect the team’s agility in a challenging environment while executing our strategy for long-term profitable growth.

“We achieved the adjusted operating margin established during our 2019 Investor Day while continuing to invest in products and services. We are well-positioned for the future and will emerge from the pandemic as an even stronger company.”