Caterpillar posted sales and revenues of $11.2 billion in the fourth quarter of 2020, compared with $13.1 billion in the fourth quarter of 2019, a 14.5-percent decrease. Adjusted profit per share was $2.12 in the fourth quarter of 2020 compared to $2.71 in the previous year’s fourth quarter, a 21.8-percent dip.
For the full year of 2020, Caterpillar reported $41.7 billion in sales and revenues compared with $53.8 billion in 2019, a 22.5-percent slide. The sales decline reflected lower end-user demand and dealers reducing their inventories by $2.9 billion in 2020. Operating profit margin was 10.9 percent for 2020 compared with 15.4 percent for 2019.
“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 Caterpillar chairman and CEO Jim Umpleby. “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 adjust operating profit margin established during our 2019 Investor Day while continuing to invest in products and services. We are well-positioned for the future and will emerge from the pandemic as an even stronger company.”
For the full year of 2020, enterprise operating cash flow was $6.3 billion. During the year, Caterpillar paid dividends of $2.2 billion and repurchased $1.1 billion of Caterpillar common stock. Liquidity remains strong with a cash balance of $9.4 billion at the end of 2020.
Construction Industries’ total sales were $4.508 billion in the fourth quarter of 2020, a decrease of $512 million, or 10 percent, compared with $5.020 billion in the fourth quarter of 2019. The decrease was from lower sales volume, driven by the impact from changes in dealer inventories and slightly lower end-user demand. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.
In North America, lower end-user demand was primarily the result of weaker pipeline and road construction. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.
Sales declined in Latin America primarily because of the unfavorable currency impacts from a weaker Brazilian real and lower sales volume. In EAME, sales were about flat as lower sales volume across several countries in the region was offset by favorable price realization and favorable currency impacts from a stronger euro. Lower sales volume was driven by lower end-user demand, partially offset by the impact of changes in dealer inventories. Dealers decreased inventories more during the fourth quarter of 2019 than during the fourth quarter of 2020.
Sales decreased in Asia/Pacific primarily because of lower sales volume and unfavorable price realization, partially offset by favorable currency impacts from both a stronger Chinese yuan and Australian dollar. The decrease in sales was mainly driven by China, where higher end-user demand was more than offset by unfavorable impacts from changes in dealer inventories. This was partially offset by higher demand in several other countries. Construction Industries’ profit was $630 million in the fourth quarter of 2020, a decrease of $29 million, or 4 percent, compared with $659 million in the fourth quarter of 2019. The decrease was mainly from lower sales volume and higher warranty expense, partially offset by favorable impact of cost absorption and lower SG&A/R&D expenses.
