Cat 1Q gross sales, revenues take 21% dive

Caterpillar 1Q gross sales and revenues took a 21 % dive, with the agency reporting $10.6 billion versus $13.5 billion for 1Q 2019.

“The decline was as a consequence of decrease gross sales quantity pushed by decrease end-user demand and the affect from modifications in supplier inventories,” says Cat, reporting that sellers elevated machine and engine inventories by about $100 million through the quarter, in contrast with $1.3 billion throughout the identical time final yr.

Delving into its response to the COVID-19 coronavirus pandemic, Cat says it suspended operations briefly at sure services “as a consequence of provide chain points, weak buyer demand or authorities rules.” As of mid-April, Cat says about 75 % of the corporate’s main manufacturing services proceed to function.

Cat warned that it might briefly droop operations at further services “if warranted by enterprise circumstances.” The corporate says it’s prioritizing spending to permit continued funding in providers and expanded choices, a part of its technique for progress launched in 2017.

Cat withdrew its 2020 steerage on March 26th and says it isn’t at the moment offering steerage for the yr.

Cat launched a video in its 1Q launch, that includes feedback by Andrew Bonfield, chief monetary officer. Round 4:35 into the video, he and Rusty Dunn, Cat enterprise communications, wax nostalgic about ConExpo, which occurred in mid-March. “It reminds us what we will get again to right here within the close to future hopefully,” Dunn says.