View Group President and CFO Brad Halverson’s quarterly results video.learn more
April 25, 2016
On April 22, 2016, Caterpillar held an earnings conference call discussing first-quarter 2016 financial results. Chairman and CEO Doug Oberhelman, Group President and CFO Brad Halverson, Vice President of Finance Services Mike DeWalt, and several analysts participated in the call. Click here to listen to the full conference call.
During the call, Doug presented the following seven important discussion points:
1. Not much change to our expectations for 2016 sales – Seeing some positives … China construction equipment, sentiment around construction in general and small uptick in commodities in Q1. However, no recovery in mining or oil & gas in sight for this year and rail customers are having a tough 2016.
2. Good operational performance continues – Overall market position for our machines in Q1 was better than this point last year ... and continues to improve in China.
3. On track implementing restructuring actions we announced last September – Contributed to $367 million of lower period costs in Q1.
4. Strong balance sheet – Important because our credit rating and maintaining the dividend are high priorities.
5. Cat Financial well managed – Portfolio metrics near historic averages, Q1 2016 past dues better than Q1 2015.
6. Focused on the future – Investing in R&D for our products, Lean and Across the Table with dealers.
7. Digital Strategy – Exciting for our future. We’re developing the architecture and apps with our partners to help customers be more productive and manage their fleets and jobsites ... was a major Caterpillar focus at the bauma trade show in Munich last week.