Caterpillar’s sales and revenues in the fourth quarter of 2018 were $14.3 billion, compared with $12.9 billion in the fourth quarter of 2017, an 11% increase, according to fourth quarter and full year results for 2018 released Jan. 28, 2019.
- Fourth quarter 2018 profit was $1.78 per share, compared with a loss of $2.18 per share in the fourth quarter of 2017.
- Adjusted profit per share in the fourth quarter of 2018 was $2.55, compared with fourth quarter 2017 adjusted profit per share of $2.16, up 18%.
- Full-year sales and revenues in 2018 were $54.7 billion, up 20% from $45.5 billion in 2017.
- Full-year profit was $10.26 per share in 2018, compared with profit of $1.26 per share in 2017.
- Adjusted profit per share in 2018 was $11.22, up 63% compared with 2017 adjusted profit per share of $6.88.
- Adjusted profit per share excludes several adjustments consisting of restructuring costs, mark-to-market losses for remeasurement of pension and other postemployment benefit plans, certain deferred tax valuation allowance adjustments, the impact of U.S. tax reform and a gain on sale of an equity investment in 2017.
- Fourth quarter 2018 Machinery, Energy & Transportation (ME&T) operating cash flow was $2.5 billion.
- In the fourth quarter of 2018, the company repurchased $1.8 billion of Caterpillar common stock and paid dividends of $507 million.
- For the full year of 2018, ME&T operating cash flow was $6.3 billion. During the year the company deployed significant capital, including the repurchase of $3.8 billion of Caterpillar common stock, dividend payments of $2.0 billion and a discretionary pension contribution of $1.0 billion.
- After returning $5.8 billion of capital to shareholders, the enterprise cash balance was $7.9 billion at the end of 2018, compared with $8.3 billion at the end of 2017.
“In 2018, Caterpillar achieved record profit per share and returned significant levels of capital to shareholders,” said Caterpillar Chairman and CEO Jim Umpleby.
Following a record year for profit per share, Caterpillar expects 2019 profit to increase to a range of $11.75 to $12.75 per share.
“Our outlook assumes a modest sales increase based on the fundamentals of our diverse end markets as well as the macroeconomic and geopolitical environment,” Umpleby said.
What others are saying:
A slowdown in China is hurting Caterpillar and investors aren’t happy. – CNN Business
Caterpillar stock skidded Monday after the company reported earnings that were sharply lower than expected and guidance that was much weaker than expected. – CNBC
Caterpillar’s results came in at 14.5% below expectations, sending Caterpillar’s stock lower and helping to drag the Dow down 380 points. That’s not to say that Caterpillar’s earnings are all that bad. - Quartz
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