Industrial machinery manufacturer Caterpillar has reported third quarter 2020 sales and revenues of USD9.9 billion – a 23 percent decrease compared to the USD12.8 billion in the third quarter of 2019.
Operating profit for the third quarter of 2020 was USD985 million, a decrease of USD1.035 billion or 51 percent, compared with USD2.020 billion in the third quarter of 2019.
The decline, according to Caterpillar, was primarily due to lower sales volume driven by lower end-user demand for equipment and services.
For the company’s construction industries business segment, total sales for the third quarter of 2020 were USD4.056 billion – a decrease of USD1.233 billion, or 23 percent, compared with USD5.289 billion in the third quarter of 2019.
During the third quarter of 2020, dealers decreased inventories in all regions except for Asia/Pacific, said Caterpillar.
In North America, sales decreased mostly due to lower end-user demand and the impact from changes in dealer inventories. These changes, along with unfavourable currency impacts from a weaker Brazilian real, also had a negative impact on sales in Latin America. The increase in sales in Asia/Pacific was primarily driven by Chinese demand.
The company’s energy and transportation business unit recorded sales of USD4.161 billion in the third quarter of 2020, which represented a decrease of USD1.291 billion, or 24 percent, compared with USD5.452 billion in the third quarter of 2019.
Nevertheless, Caterpillar chairman and ceo Jim Umpleby is optimistic. “Our third quarter results largely aligned with our expectations, and we are encouraged by positive signs in certain industries and geographies. We are executing our strategy and are ready to respond quickly to changing market conditions,” he said.