BRUSSELS: Caterpillar saw its global revenues nosedive 18% in 2016 and it made a loss for the year of $67m.
Sales and revenues for the year were $38.5bn, compared to $47.0bn in 2015 and $55.2bn in 2014 – a fall of more than 30% in just two years. Caterpillar’s revenues peaked in 2012 at $65.9bn but have been falling since. In 2016 the company lost $0.11 per share, compared with a profit of $4.18 per share in 2015.
For the past several years, Caterpillar has incurred substantial restructuring costs. During 2016 it incurred $1.019 bn of restructuring costs. And it expects to incur a further $500m of restructuring costs in 2017 as the process continues, not including planned closures at the Gosselies facility in Belgium and the factory in Aurora, Illinois, both of which are still under discussion.
“We continue to execute in a challenging economic environment and are focused on improving operating margins, profitability and shareholder returns. While we see signs of positive activity in some of our key end markets, the overall economic environment remains challenging,” said chief executive Jim Umpleby.
