Caterpillar reports 23% fall in construction sales
By Andy Brown27 October 2020
Caterpillar’s latest financial results have revealed that the company’s construction industries segment saw total sales of just over US$4 billion in the third quarter of 2020, a decrease of US$1.2 billion – 23% – compared to the third quarter of 2019.
The only region to see sales grow was Asia Pacific, which saw sales increase 14% in the third quarter of this year compared to 2019. Sales in the region were driven by a strong Chinese market.
North America saw a drop of 35%, Latin America by 44% – unfavourable currency impacts from a weaker Brazilian Real were said to have been a factor – and EAME (Europe, Africa, Middle East) was down by 24%.
The profit of the Construction Industries’ segment was US$585 million in the third quarter of 2020, a decrease of US$355 million, or 38%, compared with US$940 million in the third quarter of 2019.
Caterpillar’s Resource Industries’ total sales – which includes quarrying and mining equipment – were US$1.8 billion in the third quarter of 2020. This is a decrease of US$494 million, or 21%, compared with US$2.3 billion in the third quarter of 2019.
Sales were down in all geographical regions, with North America seeing the biggest decline at 38% and EAME the smallest at 3%. Latin America declined 23% in the third quarter of 2020 compared to the same period in 2019, and Asia Pacific was down 13%.
Caterpillar’s combined third quarter 2020 sales and revenues for all of its different segments was US$9.9 billion, a 23% decrease compared with US$12.8 billion in the third quarter of 2019.
“I’m proud of our global team’s performance as we continue to safely navigate the pandemic while remaining firmly committed to serving our customers,” said Caterpillar Chairman and CEO Jim Umpleby.
“Our third-quarter results largely aligned with our expectations, and we’re encouraged by positive signs in certain industries and geographies. We’re executing our strategy and are ready to respond quickly to changing market conditions.”