Caterpillar, Inc. (CAT) reported a 21% decline in Q1 sales caused due to falling demand in the construction and mining sectors caused by the pandemic. The company reported revenues of $10.6 billion in the first quarter, compared with $13.5 billion in the first quarter of 2019. The company reported adjusted EPS of $1.60 for the quarter in comparison to $2.94 adjusted profit per share in the same quarter a year ago.
“We have taken decisive actions to enhance our strong financial position while continuing to execute our strategy for profitable growth,” Caterpillar chairman and CEO Jim Umpleby stated. “Caterpillar has faced and overcome many challenges in our 95-year history. Our goal is to emerge from the pandemic an even stronger company.”
The company did not reveal its financial outlook for 2020 due to the “continued global economic uncertainty” caused by the pandemic. The stocks plunged 22% this year as it experienced a drop in machine sales amid the COVID-19 shutdowns. To reduce costs, Caterpillar is withholding annual salary increases and bonuses this year for the majority of its employees and all senior executives.
Shares of Caterpillar rose 0.2% after the earnings release.
Dow 30 Component Caterpillar, Inc. (CAT) is the world’s chief manufacturer of diesel and natural gas engines, construction and mining equipment, industrial gas turbines, and diesel-electric locomotives. Caterpillar, Inc. also works to make sustainable progress possible and contributes to driving positive change on every continent. To learn more about Caterpillar, Inc. (CAT) and to continue to track its progress please visit the Vista Partners Caterpillar, Inc. Coverage Page.
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