Caterpillar Inc.

- Caterpillar issued $2 billion of incremental cash through bond issuance after the quarter end, with $800 million in 10-year bonds at 2.6% and $1.2 billion in 30-year bonds at 3.25%. - The company currently has $11.2 billion in long-term debt with no maturities until 2024 or later. - Caterpillar has an incremental $3.9 billion addition to their existing $10.5 billion revolving credit facility, all undrawn at the time. - They have also registered for $4.1 billion in commercial paper, available in the U.S. and Canada as supplemental liquidity if needed. - There is no mention of new equity fundraising at this time. - Overall, Caterpillar has a strong financial position with $7.1 billion in enterprise cash and $20.5 billion in available liquidity.

- Caterpillar is continuing to invest in enablers of services growth and expanded offerings despite cost reduction efforts. - The company is delaying certain R&D projects with less-visible returns to manage capital expenditures prudently. - There is an ongoing restructuring program for challenged products, including contemplation of closing two mining facilities in Germany. - They are launching programs to reduce procurement costs and prepare for outsourcing certain back-office functions, expecting more impactful benefits in 2021. - Capital expenditures have been reduced as part of short-term actions to strengthen the financial position amid the pandemic uncertainty. - No specific new capital projects or expansions were explicitly detailed, but the focus remains on strategic investments that support long-term growth and operational excellence.

- First quarter sales and revenue declined 21% due to lower volume and dealer inventory adjustments. - Sales to users in several segments were below expectations, with demand weaker than anticipated in Asia Pacific including China. - Dealer inventories are expected to decline at the higher end of the prior range ($1.1 to $1.5 billion). - Order backlog increased by about $400 million since year-end but remains below year-ago levels. - Mining prospects are positive medium to long-term, despite current uncertainty delaying fleet replacements. - Services revenue is anticipated to hold up better than new equipment but exact changes are too early to predict. - The company expects demand and production to remain challenged until the pandemic effects diminish. - The goal remains to emerge stronger post-pandemic, focusing on long-term profitable growth with continued investment in services and expanded offerings.

- Caterpillar aims to improve annual adjusted operating margin by 300 to 600 basis points versus 2010-2016 performance (7% to 15% margins). - Targeting structural cost reductions to achieve $4 billion to $8 billion in annual free cash flow, an improvement of up to $2 billion over 2010-2016. - Despite COVID-19 impacts, management expects margins and free cash flows to remain better than historical levels. - The company is committed to emerging stronger post-pandemic with continued investments in service growth and expanded offerings. - No specific EPS guidance given for 2020 due to uncertainty, but Q1 EPS was $1.20 versus $3.25 prior year (impacted by pandemic). - Management expects higher margins at similar revenue levels compared to 2016-2017 periods. - Dividend remains a priority, with commitment to substantial shareholder returns aligned with free cash flow. - Restructuring and operational excellence initiatives aim to improve profitability over the medium to long term.

- Order backlog increased by about $400 million since year-end, following normal seasonal patterns. - Compared to the previous year, backlog was down. - Retail sales data is considered a better indicator of underlying demand than backlog due to lag in sales to users. - Dealer inventories decreased in Q1 after an increase in the prior year Q1, impacting sales. - Dealer inventory decline for the year is expected to be at the higher end of the previously provided range ($1.1 billion to $1.5 billion). - Dealers plan based on outlook for 2021, which currently is uncertain, influencing inventory and order decisions. - April trends (still preliminary) suggest a challenging environment due to lockdown impact, particularly in oil and gas sectors.