DEERFIELD, Ill., March 26, 2020 /PRNewswire/ -- Caterpillar Inc.
(NYSE: CAT) is providing a business update regarding the COVID-19
pandemic.
The continued spread of the COVID-19 pandemic is starting to
impact Caterpillar's supply chain, a possibility the company
disclosed in its risk factors included in the company's Form 10-K
filed on February 19, 2020. The
company is monitoring the situation closely and supply chain teams
have been executing business continuity plans, which include, but
are not limited to, being alert to potential short supply
situations, and, if necessary, utilizing alternative sources and/or
air freight, redirecting orders to other distribution centers, and
prioritizing the redistribution of the most impactful parts.
Caterpillar is committed to continuing to execute these plans and
will remain in close contact with its supply chain to monitor
future possible implications, especially on production
facilities.
At this time, Caterpillar is continuing to run the majority of
its U.S. domestic operations and plans to continue operations in
other parts of the world, as permitted by local authorities.
However, due to uncertain economic conditions resulting in weaker
demand, potential supply constraints and the spread of the COVID-19
pandemic and related government actions, Caterpillar is temporarily
suspending operations at certain facilities. The
company will continue to monitor the situation and may suspend
operations at additional facilities as the situation warrants.
The magnitude of the COVID-19 pandemic, including the extent of
any impact on Caterpillar's business, financial position, results
of operations or liquidity, which could be material, cannot be
reasonably estimated at this time due to the rapid development and
fluidity of the situation. It will be determined by the duration of
the pandemic, its geographic spread, business disruptions and the
overall impact on the global economy.
Caterpillar's financial results for the first quarter and
remainder of 2020 will be impacted by the above factors and the
continued global economic uncertainty due to the COVID-19 pandemic.
As a result, Caterpillar is withdrawing its financial outlook for
2020 provided in the press release filed as Exhibit 99.1 to its
Form 8-K filed on January 31, 2020.
Further updates will be provided in Caterpillar's first-quarter
earnings announcement and conference call on April 28, 2020.
Caterpillar's financial position remains strong. On a
consolidated basis, Caterpillar ended 2019 with $8.3 billion of cash and available global credit
facilities of $10.5 billion.
To protect the safety, health and well-being of employees,
customers, dealers, suppliers and communities, Caterpillar
continues to implement several preventive measures while also
meeting the needs of global customers. They include increased
frequency of cleaning and disinfecting of facilities, social
distancing practices, remote working when possible, restrictions on
business travel, cancellation of certain events and limitations on
visitor access to facilities.
About Caterpillar
Since 1925, Caterpillar Inc. has been helping our customers
build a better world – making sustainable progress possible and
driving positive change on every continent. With 2019 sales and
revenues of $53.8 billion,
Caterpillar is the world's leading manufacturer of construction and
mining equipment, diesel and natural gas engines, industrial gas
turbines and diesel-electric locomotives. Services offered
throughout the product life cycle, cutting-edge technology and
decades of product expertise set Caterpillar apart, providing
exceptional value to help our customers succeed. The company
principally operates through three primary segments – Construction
Industries, Resource Industries and Energy & Transportation –
and provides financing and related services through its Financial
Products segment. For more information, visit caterpillar.com. To
connect on social media, visit caterpillar.com/social-media.
Forward-Looking Statements
Certain statements in this press release relate to future events
and expectations and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "believe," "estimate," "will be," "will," "would,"
"expect," "anticipate," "plan," "forecast," "target," "guide,"
"project," "intend," "could," "should" or other similar words or
expressions often identify forward-looking statements. All
statements other than statements of historical fact are
forward-looking statements, including, without limitation,
statements regarding our outlook, projections, forecasts or trend
descriptions. These statements do not guarantee future performance
and speak only as of the date they are made, and we do not
undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) global and
regional economic conditions and economic conditions in the
industries we serve; (ii) commodity price changes, material price
increases, fluctuations in demand for our products or significant
shortages of material; (iii) government monetary or fiscal
policies; (iv) political and economic risks, commercial instability
and events beyond our control in the countries in which we operate;
(v) international trade policies and their impact on demand for our
products and our competitive position, including the imposition of
new tariffs or changes in existing tariff rates; (vi) our ability
to develop, produce and market quality products that meet our
customers' needs; (vii) the impact of the highly competitive
environment in which we operate on our sales and pricing; (viii)
information technology security threats and computer crime; (ix)
inventory management decisions and sourcing practices of our
dealers and our OEM customers; (x) a failure to realize, or a delay
in realizing, all of the anticipated benefits of our acquisitions,
joint ventures or divestitures; (xi) union disputes or other
employee relations issues; (xii) adverse effects of unexpected
events; (xiii) disruptions or volatility in global financial
markets limiting our sources of liquidity or the liquidity of our
customers, dealers and suppliers; (xiv) failure to maintain our
credit ratings and potential resulting increases to our cost of
borrowing and adverse effects on our cost of funds, liquidity,
competitive position and access to capital markets; (xv) our
Financial Products segment's risks associated with the financial
services industry; (xvi) changes in interest rates or market
liquidity conditions; (xvii) an increase in delinquencies,
repossessions or net losses of Cat Financial's customers; (xviii)
currency fluctuations; (xix) our or Cat Financial's compliance with
financial and other restrictive covenants in debt agreements; (xx)
increased pension plan funding obligations; (xxi) alleged or actual
violations of trade or anti-corruption laws and regulations; (xxii)
additional tax expense or exposure, including the impact of U.S.
tax reform; (xxiii) significant legal proceedings, claims, lawsuits
or government investigations; (xxiv) new regulations or changes in
financial services regulations; (xxv) compliance with environmental
laws and regulations; and (xxvi) other factors described in more
detail in Caterpillar's Forms 10-Q, 10-K and other filings with the
Securities and Exchange Commission.
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SOURCE Caterpillar Inc.