Caterpillar may close more facilities, take financial hit as Coronavirus starts to impact company

State News

DEERFIELD, Ill. (WMBD) — Caterpillar released a statement on how the company is responding to the COVID-19 pandemic on Thursday.

The company says it’s continuing to run most operations in the U.S. and other parts of the world where possible. Caterpillar does acknowledge that uncertain economic conditions are causing some facilities to shut down temporarily as previously reported.

Right now, the company says it may continue to suspend operations at certain facilities if needed.

At facilities that are operating, Caterpillar is continuing to implement several preventative measures. That includes more frequent cleaning and disinfecting of facilities, social distancing practices, and remote working when possible. The company is also restricting business travel, canceling certain events, and limiting visitor access.

Caterpillar also says that the pandemic is starting to impact its supply chain. Caterpillar previously discussed this possibility in a financial performance document submitted to the U.S. Securities and Exchange Commission on Feb. 19, 2020.

“Natural disasters, pandemic illness, including the current COVID-19 outbreak, equipment failures, power outages or other unexpected events could result in physical damage to and complete or partial closure of one or more of our manufacturing facilities or distribution centers, temporary or long-term disruption in the supply of component products from some local and international suppliers, and disruption and delay in the transport of our products to dealers, end-users and distribution centers.”

Caterpillar Inc. Form 10-K as submitted to the U.S. Securities and Exchange Commission Feb. 19, 2020

If needed, Caterpillar may use alternative sources and/or air freight, redirect orders to other distribution centers, and prioritize the redistribution of parts that are impacted the most.

Caterpillar is also sharing how it may perform financially in 2020. The company is withdrawing its financial outlook for the year which was previously filed and released on Jan. 31, 2020. Now, further updates will come from Caterpillar’s first-quarter earnings announcement on Apr. 28, 2020.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Takeout & Delivery Guide

National Unemployment Tracker

Trending Stories

Latest Local News

More Local News