Replies to post #26347 on The Rising Influence of Rising Affluence

[DewDiligence]

CAT/BHP—Escondido copper mine_moving_to all-electric hauling_trucks_during_next_decade:

https://finance.yahoo.com/news/bhp-caterpillar-finning-announce-agreement-210000202.html

BHP Group Limited, Caterpillar Inc., and Finning International Inc. announced today an agreement to replace BHP’s entire haul truck fleet at the Escondida mine, the world's largest copper producer, located in the Antofagasta Region, northern Chile.

This agreement is part of the strategic equipment renewal process developed by Escondida. The new Caterpillar 798 AC electric drive trucks will feature technology that delivers significant improvements in material-moving capacity, efficiency, reliability, and safety…

The first trucks are expected to arrive at the mine in the second half of 2023, with delivery of the remaining trucks to extend over the next 10 years as the three companies work to replace one of the largest fleets in the industry worldwide, currently comprised of over 160 haul trucks.

There is no dollar amount given in the PR for this project, but it is clearly a big deal for CAT.

[DewDiligence]

CAT CEO to stay past “mandatory” retirement age:

https://finance.yahoo.com/news/jim-umpleby-continue-caterpillar-chairman-201500413.html

Makes sense, IMO. This is not a great time to change horses.

[DewDiligence]

CAT 3Q22 results

Overall, a very solid quarter with no sign of an impending business downturn. Revenue: $15.0B, +21% YoY; GAAP EPS: $3.87, +48% YoY; non-GAAP EPS*: $3.95, +49% YoY.

CAT does not provide specific guidance for sales or EPS, but it expects 4Q22 to be the strongest quarter of 2022 (consistent with normal seasonal patterns) with YoY sales increases in all three business segments. CAT also expects that 4Q22 and full-year 2022 price increases will more than offset cost inflation of raw-materials inputs.

*Non-GAAP EPS excludes restructuring costs, which were $0.08/sh in 3Q22 and $0.06/sh in 3Q21. Excluding restructuring costs is a policy that I take issue with insofar as a multinational, multifaceted business such as CAT’s has restructuring costs continually. In this particular instance, the adjustments for restructuring costs were small, but this is not the case in all reporting periods.


PR:
https://www.caterpillar.com/content/dam/caterpillarDotCom/releases/3q22/3q22-caterpillar-inc-financial-results.pdf

CC slides:
https://s25.q4cdn.com/358376879/files/doc_financials/2022/q3/3Q-2022-Caterpillar-Inc-Earnings-Presentation.pdf