DEERFIELD, Ill. — Caterpillar is sharing financial results for the third quarter of 2019.
Sales and revenue are at $12.8 Billion for the third quarter. That’s down $700 Million from this time last year.
Caterpillar says a big reason for the decrease is a drop in dealer inventories of about $400 Million. The decision for less inventory came after an $800 million increase in 2018.
“Our volumes declined as dealers reduced their inventories, and end-user demand, while positive, was lower than our expectations,” says Caterpillar Chairman and CEO Jim Umpleby. “We remain focused on executing our strategy and continuing to achieve our Investor Day targets for margin improvement and free cash flow.”
For the fourth quarter, Caterpillar is lowering its full-year profit per share outlook range to $10.90 to $11.40. That’s a change from the previous outlook which was at the low end of the $12.06 to $13.06 range. Both ranges include the first-quarter $0.31 per share discrete tax benefit. The revised outlook is accounting for modestly lower sales in 2019.
“In the fourth quarter, we now expect end-user demand to be flat and dealers to make further inventory reductions due to global economic uncertainty,” says Umpleby. “Caterpillar’s improved lead times, along with these dealer inventory reductions, will enable us to respond quickly to positive or negative developments in the global economy in 2020. We are expanding our offerings and investing in services, including digital capabilities, to drive long-term profitable growth, while continuing to achieve our Investor Day targets for improved financial performance.”
Click here to view a PDF showing the quarterly highlights.