Caterpillar construction business down 10% in 2020

Caterpillar has published its full year financial results, which show sales and revenues of $4.5 billion for its Construction Industries segment, down 10% from $5.02 billion for the same time last year.

Company-wide 2020 sales and revenues of $41.7 billion are down 22% on 2019’s $53.8 billion.

The company said the lower sales were a result of lower end-user demand and the impact from changes in dealer inventories.

The fourth quarter of 2020 saw the company posting combined segment revenues of $11.2 billion. This is down 15% from $13.1 billion for the fourth quarter of 2019.

Regionally, the segment achieved sales of $1.8 billion in North America, 16% lower than in the fourth quarter of 2019. While its Latin America revenues were down 21% compared to the previous year, in the Asia Pacific region the company saw sales of $1.41 billion, just 4% less than in 2019.

When compared to the fourth quarter of 2019, the company’s Resource Industries segment fared slightly better. Including quarrying and mining equipment, its 2020 Q4 sales amounted to $2.18 billion, a reduction of 9% on 2019’s fourth quarter. However, regionally the figures looked encouraging, with sales up 8% in the Asia/Pacific market and 26% in the Latin America region.

“I’m proud of our global team’s continued resilience in safely navigating Covid-19 while continuing to provide the essential products and services the world needs,” said Jim Umpleby, Caterpillar chairman & CEO. “Our fourth-quarter and full-year results reflect the team’s agility in a challenging environment while executing our strategy for long-term profitable growth.

“We achieved the adjusted operating margin established during our 2019 Investor Day while continuing to invest in products and services,” he said. “We are well-positioned for the future and will emerge from the pandemic as an even stronger company.”