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Caterpillar Reports First-Quarter 2019 Results

Achieved Record First-Quarter Profit Per Share on Higher Sales and Revenues

DEERFIELD, Ill., April 24, 2019 /PRNewswire/ --

  • First-quarter sales and revenues increased 5%
  • Record first-quarter profit per share
  • Profit per share outlook now $12.06 to $13.06 due to a first-quarter discrete tax benefit of $0.31 per share
  • Repurchased $751 million in company stock

 


First Quarter

($ in billions except profit per share)

2019

2018

Sales and Revenues

$13.5

$12.9

Profit Per Share

$3.25

$2.74

Caterpillar Inc. (CAT) today announced first-quarter 2019 sales and revenues of $13.5 billion, compared with $12.9 billion in the first quarter of 2018, a 5% increase. First-quarter 2019 profit of $3.25 per share was a first-quarter record. This was a 19% increase compared with the previous record first-quarter profit per share of $2.74 in 2018.

Profit per share in the first quarter of 2019 included a discrete tax benefit related to U.S. tax reform of $178 million, or $0.31 per share. Profit per share in the first quarter of 2018 included restructuring costs of $0.08 per share.

During the first quarter of 2019, Machinery, Energy & Transportation (ME&T) operating cash flow was $860 million. In the first quarter of 2019, the company repurchased $751 million of Caterpillar common stock and paid dividends of $494 million. The enterprise cash balance at the end of the first quarter of 2019 was $7.1 billion.

"The global Caterpillar team delivered record first-quarter profit per share," said Caterpillar Chairman and CEO Jim Umpleby. "We are executing our strategy for profitable growth by investing in services, expanding our offerings and improving operational excellence."

2019 Outlook

The company continues to have confidence in the fundamentals of its diverse end markets, and expectations for 2019 performance are unchanged. However, due to a $0.31 per share discrete tax benefit, Caterpillar is revising its profit per share outlook to a range of $12.06 to $13.06, compared with the previous outlook range of $11.75 to $12.75. The first-quarter discrete tax benefit of $178 million, or $0.31 per share, is related to U.S. tax reform as a result of final regulations recently issued by the U.S. Treasury. The outlook does not include a mark-to-market gain or loss for remeasurement of pension and other postemployment benefit plans, which will be excluded from adjusted profit per share in the fourth quarter of 2019 along with any other discrete items.

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison
First Quarter 2019 vs. First Quarter 2018


To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar first-quarter 2019 earnings.

The chart above graphically illustrates reasons for the change in Consolidated Sales and Revenues between the first quarter of 2018 (at left) and the first quarter of 2019 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's Board of Directors and employees.

Total sales and revenues of $13.466 billion in the first quarter of 2019, increased $607 million, or 5%, compared with $12.859 billion in the first quarter of 2018. The increase was primarily due to higher sales volume driven by improved demand for both equipment and services, with the most significant increase in Resource Industries. Sales volume also increased in Construction Industries, while Energy & Transportation was about flat. Sales grew in all regions except for EAME, with the largest gains in North America and Asia/Pacific. Favorable price realization, primarily in Construction Industries and Resource Industries, also contributed to the sales improvement. The increase was partially offset by unfavorable currency impacts due to a stronger U.S. dollar.

Sales and Revenues by Segment

(Millions of dollars)

First
Quarter
2018


Sales
Volume


Price
Realization


Currency


Inter-
Segment /
Other


First
Quarter
2019


$
Change


%
Change

















Construction Industries

$

5,677



$

164



$

156



$

(127)



$

3



$

5,873



$

196



3%

Resource Industries

2,309



371



110



(42)



(21)



2,727



418



18%

Energy & Transportation

5,219



21



27



(91)



34



5,210



(9)



—%

All Other Segment

116



1





(1)



5



121



5



4%

Corporate Items and Eliminations

(1,171)



(14)



(1)





(21)



(1,207)



(36)




Machinery, Energy & Transportation

$

12,150



$

543



$

292



$

(261)



$



$

12,724



$

574



5%

















Financial Products Segment

$

793



$



$



$



$

57



$

850



$

57



7%

Corporate Items and Eliminations

(84)









(24)



(108)



(24)




Financial Products Revenues

$

709



$



$



$



$

33



$

742



$

33



5%

















Consolidated Sales and Revenues

$

12,859



$

543



$

292



$

(261)



$

33



$

13,466



$

607



5%

















 

Sales and Revenues by Geographic Region


North America


Latin America


EAME


Asia/Pacific


External Sales
and Revenues


Inter-Segment


Total Sales
and Revenues

(Millions of dollars)

$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg

First Quarter 2019




























Construction Industries

$

2,965



13%


$

319



(7%)


$

1,006



(6%)


$

1,562



(4%)


$

5,852



3%


$

21



17%


$

5,873



3%

Resource Industries

951



19%


423



18%


468



(10%)


805



52%


2,647



20%


80



(21%)


2,727



18%

Energy & Transportation

2,151



(3%)


332



19%


1,032



(5%)


718



6%


4,233



(1%)


977



4%


5,210



—%

All Other Segment

8



(47%)




—%


11



175%


18



—%


37



—%


84



6%


121



4%

Corporate Items and Eliminations

(41)





1





(3)





(2)





(45)





(1,162)





(1,207)




Machinery, Energy & Transportation

6,034



7%


1,075



9%


2,514



(6%)


3,101



9%


12,724



5%




—%


12,724



5%





























Financial Products Segment

558



9%


70



(5%)


102



1%


120



13%


850



7%




—%


850



7%

Corporate Items and Eliminations

(69)





(11)





(9)





(19)





(108)









(108)




Financial Products Revenues

489



6%


59



(3%)


93



(3%)


101



13%


742



5%




—%


742



5%





























Consolidated Sales and Revenues

$

6,523



7%


$

1,134



8%


$

2,607



(6%)


$

3,202



9%


$

13,466



5%


$



—%


$

13,466



5%





























First Quarter 2018




























Construction Industries

$

2,620





$

344





$

1,067





$

1,628





$

5,659





$

18





$

5,677




Resource Industries

798





360





520





530





2,208





101





2,309




Energy & Transportation

2,225





280





1,092





679





4,276





943





5,219




All Other Segment

15









4





18





37





79





116




Corporate Items and Eliminations

(28)





1





(3)









(30)





(1,141)





(1,171)




Machinery, Energy & Transportation

5,630





985





2,680





2,855





12,150









12,150
































Financial Products Segment

512





74





101





106





793









793




Corporate Items and Eliminations

(49)





(13)





(5)





(17)





(84)









(84)




Financial Products Revenues

463





61





96





89





709









709
































Consolidated Sales and Revenues

$

6,093





$

1,046





$

2,776





$

2,944





$

12,859





$





$

12,859
































Consolidated Operating Profit

Consolidated Operating Profit Comparison
First Quarter 2019 vs. First Quarter 2018

To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar first-quarter 2019 earnings.

The chart above graphically illustrates reasons for the change in Consolidated Operating Profit between the first quarter of 2018 (at left) and the first quarter of 2019 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's Board of Directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation other operating (income) expenses.

Operating profit for the first quarter of 2019 was $2.207 billion, compared with $2.108 billion in the first quarter of 2018. The increase of $99 million was mostly due to favorable price realization and higher sales volume, partially offset by higher manufacturing costs and increased selling, general and administrative (SG&A) and research and development (R&D) expenses. The increase in manufacturing costs was primarily due to higher variable labor and burden, including freight costs, and material costs, including tariffs. SG&A/R&D expenses were higher primarily due to increased targeted investments and timing of corporate-level expenses, partially offset by lower short-term incentive compensation expense.

Operating profit margin was 16.4% for the first quarter of 2019 and 2018.

Profit by Segment

(Millions of dollars)

First Quarter
2019


First Quarter
2018


$
Change


%
 Change

Construction Industries

$

1,085



$

1,117



$

(32)



(3%)

Resource Industries

576



378



198



52%

Energy & Transportation

838



874



(36)



(4%)

All Other Segment

25



57



(32)



(56%)

Corporate Items and Eliminations

(375)



(371)



(4)




Machinery, Energy & Transportation

$

2,149



$

2,055



$

94



5%









Financial Products Segment

$

211



$

141



$

70



50%

Corporate Items and Eliminations

(46)



(2)



(44)




Financial Products

$

165



$

139



$

26



19%









Consolidating Adjustments

(107)



(86)



(21)












Consolidated Operating Profit

$

2,207



$

2,108



$

99



5%









Other Profit/Loss and Tax Items

The provision for income taxes in the first quarter of 2019 reflected an estimated annual tax rate of 26%, compared with 24% for the first quarter of 2018, excluding the discrete items discussed in the following paragraph. The increase was largely driven by the application of U.S. tax reform provisions to the earnings of certain non-U.S. subsidiaries, which do not have a calendar fiscal year-end. These provisions did not apply to these subsidiaries in 2018.

As a result of final regulations received in January 2019 related to the mandatory deemed repatriation of non-U.S. earnings due to U.S. tax reform, Caterpillar recorded a discrete tax benefit of $178 million in the first quarter of 2019. In addition, a discrete tax benefit of $23 million was recorded in the first quarter of 2019, compared with $40 million in the first quarter of 2018, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.

CONSTRUCTION INDUSTRIES

(Millions of dollars)
















Segment Sales
















First Quarter
2018


Sales
Volume


Price
Realization


Currency


Inter-
Segment


First Quarter
2019


$
 Change


%
Change

Total Sales

$

5,677



$

164



$

156



$

(127)



$

3



$

5,873



$

196



3%

















Sales by Geographic Region










First Quarter
2019


First Quarter
2018


$
Change


%
Change









North America

$

2,965



$

2,620



$

345



13%










Latin America

319



344



(25)



(7%)










EAME

1,006



1,067



(61)



(6%)










Asia/Pacific

1,562



1,628



(66)



(4%)










External Sales

5,852



5,659



193



3%










Inter-segment

21



18



3



17%










Total Sales

$

5,873



$

5,677



$

196



3%


























Segment Profit










First Quarter
2019


First Quarter
2018


 

Change


%
Change









Segment Profit

$

1,085



$

1,117



$

(32)



(3%)










Segment Profit Margin

18.5%



19.7%



(1.2pts)



























































Construction Industries' total sales were $5.873 billion in the first quarter of 2019, compared with $5.677 billion in the first quarter of 2018. The increase was mostly due to higher end-user demand for construction equipment, partially offset by a smaller increase in dealer inventories compared with the first quarter of 2018. Favorable price realization was partially offset by unfavorable currency impacts due to a stronger U.S. dollar.

  • In North America, the sales increase was driven by higher demand for new equipment, primarily to support road construction activities. Favorable price realization also contributed to the sales improvement.
  • Construction activities remained at low levels in Latin America.
  • In EAME, the sales decrease was primarily due to a smaller increase in dealer inventories compared with the first quarter of 2018, and a weaker euro, partially offset by favorable price realization.
  • Sales in Asia/Pacific declined due to unfavorable currency impacts.

Construction Industries' profit was $1.085 billion in the first quarter of 2019, compared with $1.117 billion in the first quarter of 2018. The decrease in profit was a result of higher manufacturing costs, partially offset by favorable price realization. Manufacturing costs increased primarily due to higher material, labor and freight costs.

RESOURCE INDUSTRIES

(Millions of dollars)
















Segment Sales
















First Quarter
2018


Sales
Volume


Price
Realization


Currency


Inter-
Segment


First Quarter
2019


$
 Change


%
 Change

Total Sales

$

2,309



$

371



$

110



$

(42)



$

(21)



$

2,727



$

418



18%

















Sales by Geographic Region










First Quarter
2019


First Quarter
2018


$
Change


%
Change









North America

$

951



$

798



$

153



19%










Latin America

423



360



63



18%










EAME

468



520



(52)



(10%)










Asia/Pacific

805



530



275



52%










External Sales

2,647



2,208



439



20%










Inter-segment

80



101



(21)



(21%)










Total Sales

$

2,727



$

2,309



$

418



18%


























Segment Profit










First Quarter
2019


First Quarter
2018


 

Change


%
Change









Segment Profit

$

576



$

378



$

198



52%










Segment Profit Margin

21.1%



16.4%



4.7pts



























































Resource Industries' total sales were $2.727 billion in the first quarter of 2019, an increase of $418 million from the first quarter of 2018. The increase was primarily due to higher equipment demand, favorable price realization and services. Mining production levels and commodity market fundamentals remained positive, which supported higher sales. Higher demand levels for non-residential construction activities and quarry and aggregate operations also drove higher sales.

Resource Industries' profit was $576 million in the first quarter of 2019, compared with $378 million in the first quarter of 2018. The improvement was mostly due to higher sales volume. Favorable price realization was partially offset by higher manufacturing costs, including increased material and freight costs and slightly higher warranty expense.

ENERGY & TRANSPORTATION

(Millions of dollars)
















Segment Sales
















First Quarter
2018


Sales
Volume


Price
Realization


Currency


Inter-
Segment


First Quarter
2019


$
Change


%
Change

Total Sales

$

5,219



$

21



$

27



$

(91)



$

34



$

5,210



$

(9)



—%

















Sales by Application










First Quarter
2019


First Quarter
2018


$
Change


%
Change









Oil and Gas

$

1,131



$

1,215



$

(84)



(7%)










Power Generation

1,036



969



67



7%










Industrial

904



906



(2)



—%










Transportation

1,162



1,186



(24)



(2%)










External Sales

4,233



4,276



(43)



(1%)










Inter-segment

977



943



34



4%










Total Sales

$

5,210



$

5,219



$

(9)



—%


























Segment Profit










First Quarter
2019


First Quarter
2018


 

Change


%
Change









Segment Profit

$

838



$

874



$

(36)



(4%)










Segment Profit Margin

16.1%



16.7%



(0.6pts)



























































Energy & Transportation's total sales were $5.210 billion in the first quarter of 2019, about flat compared with $5.219 billion in the first quarter of 2018. Decreases due to unfavorable currency impacts from a stronger U.S. dollar were nearly offset by favorable price realization and higher sales volumes.

  • Oil and Gas – Sales were negatively impacted by the timing of turbine project deliveries in North America. The decrease was partially offset by higher demand for reciprocating engines for gas compression in North America.
  • Power Generation – Sales increased primarily due to higher shipments for large diesel reciprocating engine applications in all regions except EAME.
  • Industrial – Sales were about flat, with a decrease in EAME primarily due to unfavorable currency impacts nearly offset by higher sales in North America.
  • Transportation – Sales were slightly lower primarily due to unfavorable currency impacts.

Energy & Transportation's profit was $838 million in the first quarter of 2019, compared with $874 million in the first quarter of 2018. The decrease was mostly due to higher manufacturing costs including increased freight costs, higher warranty expense and slightly higher labor costs. The decrease was partially offset by favorable price realization and higher sales volume.

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)








Revenues by Geographic Region


First Quarter
2019


First Quarter
2018


$
Change


%
Change

North America

$

558



$

512



$

46



9%

Latin America

70



74



(4)



(5%)

EAME

102



101



1



1%

Asia/Pacific

120



106



14



13%

Total

$

850



$

793



$

57



7%









Segment Profit


First Quarter
2019


First Quarter
2018


 

Change


%
Change

Segment Profit

$

211



$

141



$

70



50%









Financial Products' segment revenues were $850 million in the first quarter of 2019, an increase of $57 million, or 7%, from the first quarter of 2018. The increase was primarily due to higher average financing rates and higher average earning assets in North America and Asia/Pacific.

Financial Products' segment profit was $211 million in the first quarter of 2019, compared with $141 million in the first quarter of 2018. The increase was primarily due to a $42 million favorable impact from mark-to-market on equity securities in Insurance Services, an increase in net yield on average earning assets and a decrease in the provision for credit losses at Cat Financial.

At the end of the first quarter of 2019, past dues at Cat Financial were 3.61%, compared with 3.17% at the end of the first quarter of 2018. The increase in past dues was primarily driven by Cat Power Finance, concentrated in the marine portfolio. Write-offs, net of recoveries, were $30 million for the first quarter of both 2019 and 2018. As of March 31, 2019, Cat Financial's allowance for credit losses totaled $534 million, or 1.89% of finance receivables, compared with $511 million, or 1.80% of finance receivables, at December 31, 2018.

QUESTIONS AND ANSWERS



Q1:

Can you provide more information on the $178 million discrete tax benefit related to U.S. tax reform?



A: 

On January 15, 2019, the U.S. Treasury issued final regulations related to the mandatory deemed repatriation of non-U.S. earnings required by U.S. tax reform. Due to clarification provided in these regulations supporting the position taken on Caterpillar's tax return, the company reduced its tax reserves (unrecognized tax benefits) with a corresponding benefit to the provision for income taxes in the first quarter of 2019. A reconciliation of profit per share excluding this discrete tax benefit can be found in the appendix on Page 19.



Q2: 

Can you discuss changes in dealer inventories during the first quarter of 2019 and the outlook for the year?



A: 

Dealers generally increase inventories during the first quarter in preparation for the spring selling season. Dealer machine and engine inventories increased about $1.3 billion during the first quarter of 2019, compared with an increase of about $1.2 billion during the first quarter of 2018. The company believes the increase in dealer inventories is reflective of current end-user demand. Caterpillar's expectation remains that dealer inventories should be about flat for the full year.



Q3: 

Can you discuss changes to your order backlog by segment?



A: 

At the end of the first quarter of 2019, the order backlog was $16.9 billion, about $300 million higher than the fourth quarter of 2018. The increase was in Construction Industries and Energy & Transportation, partially offset by a decrease in Resource Industries due to higher dealer inventories.



Q4: 

Can you comment on expense related to your 2019 short-term incentive compensation plans?



A: 

Short-term incentive compensation expense is directly related to financial and operational performance, measured against targets set annually. First-quarter 2019 expense was about $220 million, compared with first-quarter 2018 expense of about $360 million. For 2019, short-term incentive compensation expense is expected to be significantly lower than 2018.

Notes:

  • Glossary of terms is included on the Caterpillar website at http://www.caterpillar.com/investors/.
  • Information on non-GAAP financial measures is included in the appendix on page 19.
  • Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 10 a.m. Central Time on Wednesday, April 24, 2019, to discuss its 2019 first-quarter financial results. The accompanying slides will be available before the webcast on the Caterpillar website at http://www.caterpillar.com/investors/events-and-presentations.

About Caterpillar:

For more than 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2018 sales and revenues of $54.722 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. The company principally operates through its three primary segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us 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 including natural disasters; (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.

Machinery, Energy & Transportation

Caterpillar defines Machinery, Energy & Transportation as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. Machinery, Energy & Transportation information relates to the design, manufacture and marketing of Caterpillar products. Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment. The nature of these businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company also believes this presentation will assist readers in understanding Caterpillar's business. Pages 12-18 reconcile Machinery, Energy & Transportation with Financial Products on the equity basis to Caterpillar Inc. consolidated financial information.

Caterpillar's latest financial results and outlook are also available online:

         http://www.caterpillar.com/en/investors.html

         http://www.caterpillar.com/en/investors/quarterly-results.html (live broadcast/replays of quarterly conference call)

 

Caterpillar Inc.

Condensed Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)




Three Months Ended



March 31,



2019


2018

Sales and revenues:











Sales of Machinery, Energy & Transportation

$

12,724




$

12,150




Revenues of Financial Products


742





709




Total sales and revenues


13,466





12,859














Operating costs:











Cost of goods sold


9,003





8,566




Selling, general and administrative expenses


1,319





1,276




Research and development expenses


435





443




Interest expense of Financial Products


190





166




Other operating (income) expenses


312





300




Total operating costs


11,259





10,751














Operating profit


2,207





2,108















Interest expense excluding Financial Products


103





101




Other income (expense)


160





127














Consolidated profit before taxes


2,264





2,134















Provision (benefit) for income taxes


387





472




Profit of consolidated companies


1,877





1,662















Equity in profit (loss) of unconsolidated affiliated companies


7





5













Profit of consolidated and affiliated companies


1,884





1,667













Less: Profit (loss) attributable to noncontrolling interests


3





2













Profit 1

$

1,881




$

1,665
























Profit per common share

$

3.29




$

2.78














Profit per common share – diluted 2

$

3.25




$

2.74














Weighted-average common shares outstanding (millions)











- Basic


572.4





598.0




- Diluted2


578.8





608.0


























1 Profit attributable to common shareholders.

2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.


 

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)



March 31,


December 31,


2019


2018

Assets











Current assets:












Cash and short-term investments

$

7,128




$

7,857





Receivables – trade and other


8,961





8,802





Receivables – finance


8,932





8,650





Prepaid expenses and other current assets


1,765





1,765





Inventories


12,340





11,529




Total current assets


39,126





38,603















Property, plant and equipment – net


13,259





13,574




Long-term receivables – trade and other


1,149





1,161




Long-term receivables – finance


12,674





13,286




Noncurrent deferred and refundable income taxes


1,378





1,439




Intangible assets


1,807





1,897




Goodwill


6,191





6,217




Other assets


3,142





2,332



Total assets

$

78,726




$

78,509













Liabilities











Current liabilities:












Short-term borrowings:













-- Machinery, Energy & Transportation

$

4




$






-- Financial Products


5,586





5,723





Accounts payable


7,198





7,051





Accrued expenses


3,746





3,573





Accrued wages, salaries and employee benefits


1,200





2null