Caterpillar sales and revenue were down 2 percent in 2019, compared to the previous year, to $54.7 billion. Profit per share was $10.74 for the year, up from $10.26 in 2018.
“While sales declined modestly in 2019, we delivered an operating margin and free cash flow consistent with our long-term targets and continued to invest in services and expanded offerings,” said chair/CEO Jim Umpleby in a prepared statement. “The team’s focus on executing our strategy for profitable growth also allowed us to increase our dividend by 20% and return more than $6 billion in capital to shareholders through dividends and share repurchases.”
Caterpillar also reported fourth quarter financials. Sales and revenues were $13.1 billion, down 8 percent compared with the same period in 2018. Q4 profit per share was up 11 percent to $1.97. Adjusted profit per share was $2.63, up 3 percent.
“In the fourth quarter, strong cost control more than offset lower-than-expected end-user demand,” said Umpleby. “Our margin performance reflected our diligent focus on maintaining a flexible and competitive cost structure.”
The company expects this year, 2020, to continue uncertain, with adjusted profit per share projected to run between $8.50 and $10, compared to the $11.06 figure reported for 2019.
“We expect continued global economic uncertainty to pressure sales to users in 2020 and cause dealers to further reduce inventories,” said Umpleby. “We have improved our lead times and remain prepared to respond quickly to any positive or negative changes in customer demand. We will continue to invest in services and expanded offerings to advance our strategy for long-term profitable growth, while achieving our Investor Day targets.”
Below, Caterpillar CFO Andrew Bonfield looks at the results.
