baird investor conference caterpillar 11112015
TRANSCRIPT
8/20/2019 Baird Investor Conference Caterpillar 11112015
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1
Baird 2015 Industrial Conference
Energy and Transportation –Jim UmplebyInvestor Relations – Rich MooreNovember 11, 2015
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3
Discussion
►Third-Quarter Results / Outlook –Rich Moore
►Energy & Transportation Review –Jim Umpleby
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4
Third-Quarter 2015 Financial Results
• Lower sales in all regions and for each segment
• Most significant decline in Energy & Transportation
• Price realization negative $60 million
• Lower sales volume was the primary reason for the decline inprofit
• Significant unexpected items in the third quarter of 2015
Adjustment to incentive compensation expense as a result of lowering
the 2015 outlook reduced Q3 2015 operating costs by about $70million, or about $0.09 per share.
Currency translation losses on non US$ assets and liabilities andhedging losses combined were about $135 million, or about $0.17 pershare in the quarter. Included in the Other Income and Expense lineof the P&L, below Operating Profit.
Sales and Revenues Profit
3rd Quarter 3rd Quarter
2014 2015 Change
Sales and Revenues $ 13.5 Billion $ 11.0 Billion $ (2.5)Billion
Profit Per Share $ 1.63 $ 0.62 $ (1.01)
Profit Per Share $ 1.72 $ 0.75 $ (0.97)
Excluding Restructuring Costs
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2015 Outlook
#
Outlook
Sales and Revenues Top end about $48 Billion
Profit Per Share About $3.70
Profit Per Share About $4.60Excluding Restructuring
Profit outlook reflects:
• Lower sales and revenues than expected in July.
• About $0.17 per share of currency translation and hedging losses from the third quarter.
• Additional cost reduction and lower incentive compensation.• Significantly higher restructuring costs.
# Outlook as of October 22, 2015; We are not updating our outlook today
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Preliminary Outlook for 2016 Sales & Revenues
#
Expect 2016 to be down about 5% from 2015
4th consecutive down year
• Resource Industries expected to be down about 10% in 2016 … but from avery low base.
• Construction Industries flat to down 5% from 2015.
• Energy & Transportation down 5% to 10% ... mostly oil & gas, much of thata result of a higher backlog at the start of 2015.
# Outlook as of October 22, 2015; We are not updating our outlook today
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ENERGY &TRANSPORTATION
Energy & Transportation Sales
POWERGENERATION
INDUSTRIAL
TRANSPORTATION
OIL & GAS
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OIL & GAS
SOLUTIONS PROVIDER
• Reciprocating Engines
• Pumps & Transmissions
• Gas Turbines & Compressors
APPLICATIONS
• Offshore & Land Drilling
• Well Service• Production
• Gas Compression
ENERGY &TRANSPORTATION
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POWER GENERATION
SOLUTIONS PROVIDER
• Generator Sets (10kW – 22 MW)
• Reciprocating Engines
• Gas Turbines
DIESEL & GAS
• Data Centers
• Telecommunications• Hospitals
• Universities
ENERGY &TRANSPORTATION
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SOLUTIONS PROVIDER
• Marine Engines
• Marine Auxiliary Units
• Cat Propulsion Systems (Berg)
APPLICATIONS
• Cargo
• Cruise and Ferry
• High Performance
• Commercial Workboat
MARINE
ENERGY &TRANSPORTATION
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RAIL
SOLUTIONS PROVIDER
• Freight and Transit Locomotives
• Freight Car, Signal and Track Services
ENERGY &TRANSPORTATION
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Rail
ENERGY &
TRANSPORTATION
Oil & Gas Marine
IndustrialPower Generation
ENERGY &TRANSPORTATION