Andrew R. Bonfield
and segments. the provide fourth then on and performance detailed summary everyone. the comments, more some you, the I'll with of a morning, Thank good quarter Jim, of begin including
Next, assumptions for discuss free with quarter. flow our sheet I'll first for balance XXXX, well the on the as before high-level concluding as cash and comments expectations
a and the Sales Beginning billion, decrease versus X. on prior year. $XX.X X% Slide revenues were
in adjusted fourth currency Jim were was in profit in of year. than mix, remeasurement addition per the and the $X.XX lower XX.X%. mentioned, anticipated, Adjusted in $X.XX share Adjusted compared margin unfavorable fourth and other profit As the together the a change $X profit we related which our Profit quarter plans year. excluded for profit operating per to $X.XX in lower-than-expected quarter, $X.XX quarter. costs $X.XX X% translation. quarter. also gains in was decrease of Mark-to-market discrete sales resulted tax tax to was quarter pension restructuring billion, operating excluded slightly to law of share benefit a Adjusted was margins compared for was of post-employment the share a $X.XX $X.XX with had to the per for last last of
income related driven translation, positive impact negative quarter ME&T mostly balance and versus a the which compared the in was fourth Other expense $XXX to million impact a to sheet prior favorable year. year, currency last by
movements, fourth previously, mentioned not offset impact the we to so I quarter of expected. impact As the being currency XXXX of profit translation operating positive do anticipate helped on lower the than
for reflected we and XXXX taxes $X.XX. items, income This quarter the a than of ago benefited rate effective had the tax global quarter in annual a quarter the by provision discrete Excluding lower of slightly expected fourth was XX.X%.
Finally, the reduction average compared to the profit impact quarter share resulted to year-over-year outstanding adjusted impact in from and $X.XX of per shares approximately fourth on of due the share of number as favorable the in repurchases, a XXXX. primarily
and higher-than-anticipated dealer inventory was had decreased decrease X% to by sales by increased the for Service discuss the compared Moving and and function in in $X.X top North XX. line billion year, the on is than to line expected of a Industries. in impacted revenues we Total sales both primarily $X.X we impact to dealer in fourth XXXX. dealer with the in about what Sales quarter quarter quarter. compared to changes volume. was expected. driven decreased prior inventory was The total and year-over-year the Resource industries decrease the unfavorable Price inventories and the to lower year. had results larger users. revenues mostly in by America construction in volume Slide compared I'll from year-over-year decrease in across billion machine by Lower X% the a to sales prior users in machine
a As was & due Energy had than slightly than slower mostly larger the I slightly the some we in sales mentioned, decrease in delays at rate This Transportation. and expected anticipated. services had quarter was we growing to delivery
to Adjusted in operating lower-than-expected X% profit volume. billion. profit X% XX. decreased to profit quarter $X Operating decreased profit the Slide fourth to Moving billion, impact operating due of by on to by the $X.X mainly sales
to for mentioned, basis to due profit adjusted I sales than XX mainly impact had lower-than-expected the a a the prior volume mix. This anticipated, and operating year. of the fourth the compared was decrease quarter, As XX.X%, lower unfavorable margin was we point
in decrease On volume. year, to on driven the XX. XXXX. equipment slightly to our Slide did to volume Industries sales primarily sales Construction below mainly volume. the due of by during billion. prior X% the quarter decreased X% and the expectations lower to fourth users lower slightly is The and lower-than-anticipated by sales sales realization reducing was of This sales quarter $X price decrease unfavorable inventory dealers end in was their they by more fourth Compared than
primarily to increased quarter the post-sales Fourth for price profit primarily the sales Construction of versus was decreased $X.X America, region, in and the sales by the unfavorable was impact Latin This Construction as in EAME a due Industries XX% Industries X%. billion, region realization X%. a XX%. result decrease by America year. of by Pacific prior decreased Asia by By North sales decreased In X% Sales costs by volume versus and also Manufacturing our mix. declined. anticipated, as was our lower had you the discussed The The prior decrease of cost segment's in Industries were merchandising programs year. we principally points Construction impacted XX.X% basis absorption from margin due of than XXX versus inventory a October. unfavorable we to lower and was a expectations, margin headwind unfavorable that was with
the anticipated. quarter rate below Slide Industries we XX. to fourth X% at slightly expectations Resource mainly due billion. than sales growing This a services by decreased in $X our was to had Turning to lower
driven inventory due more year, decreased As primarily dealer it lower XXXX. the by quarter sales in did fourth the prior in changes than decrease quarter volume, impact XXXX of Dealer in to the fourth we X% inventories. from the compare mainly the to sales was of
XXX million. Fourth quarter was the decrease by segment's This to volume. versus basis lower we anticipated, Industries This of lower to a volume. due the $XXX the profit mainly decreased prior impact than was versus profit for of points XX% margin Resource of had XX.X% is prior year due to lower year. primarily sales The
sales the of $X.X services flat locomotives. oil of rate, the year. due gas lower-than-expected Compared on about sales Slide Sales in our oil deliveries decreased XX. sales roughly and expectations to versus mostly generation sales growth impact and sales year, lower were billion slightly and industrial were a below and was the by by timing realization. prior X%, international Transportation & Energy the Now sales of were XX% of prior to largely by price favorable power by Transportation application, were volume flat lower as offset sales by XX%. increased decreased gas By XX%.
X% & volume. partially versus increase primarily to The lower increase prior of volume Energy to increased basis primarily for of favorable prior we points billion. unfavorable impact segment's of year. $X.X This Transportation due products. profit profit the the and an versus offset The realization, XX was by the lower-than-expected was anticipated, than an was margin quarter of price lower sales Fourth XX.X% year mix to by had due
$XXX due decreased a regions XX% XX. except by higher average versus due This to Moving rates about financing in across was higher and X% earning profit primarily average assets for addition to to Slide revenues Financial prior mainly to provision North to impact an from year lower in America. North Products margin all America $X to billion, Segment securities equity by unfavorable higher increased the credit million. losses. and
down rate financial level and remains points lows. year historic The near X.XX% remaining Past the lowest customers' our allowance was basis X.XX% strong. prior health were XX dues the quarter, Our in versus XXXX. since
Caterpillar our versus X% for the buy remains finance business Cat increase XXXX, attractive packages supported prior grew applications equipment. our year. and Retail Business since level activity at credit healthy. choosing was customers This by highest by volume Financial new to retail
financed our see equipment lease Financial, averages for remain buy levels. in Cat to low more historical choose sales through their term. Conversion the used of healthy continue to proportionately and inventories at are equipment as customers remains rates of addition, above demand end at We
Moving on to Slide XX.
We of the near CapEx payment our target expenditure. compensation billion continue year higher which strong The cash was with larger our and range just $X.X in flow. line year XXXX short-term for $X incentive for a billion, slightly to free end ME&T the capital despite prior The about in top expectations. than was and generate was lower
shareholders XXXX, billion we to In to continue be repurchases, through our stock share deployment. deployed fulfill Moving we consistent to objective a as the and on On returned basis. we $X.X $XX.X market in billion capital dividends. to repurchase more
Our liquid sheet with balance an strong remains $X addition, slightly in cash of longer-dated cash. marketable improve hold yields billion enterprise balance we securities to billion, that $X.X on in
Now on XX. Slide
with our expectations me a Let year. overview high-level of full the start for
slight realization expect XXXX the for sales both unfavorable of for impact volume impact in a with the sales price We should merchandising decrease for year. in Due full price. a decrease X% about post-sales an programs, account to from and
together Our in range target result in half we margins, above XXXX. profit end the investments of being making range should impact the due the costs of top level top the adjusted the the of are the higher with being occurred depreciation as rather of to sales of in margins operating than price, expected
progressive. Our margin targets are
is our an volume while have impact we lower sales. So would adjusted on absolute for target expect to margins,
benefit interest as well a in the translation XXXX. absence income interest expect positive XXXX, that other sheet headwind occurred lower slight due ME&T lower from balance to rates, and in due the primarily We mostly as to currency in income expense of
translation As our do anticipate in not I expectations. mentioned, we movements
anticipate for global of million of to discrete XXXX. in XX% expect We excluding annual costs million approximately restructuring rate XXXX, We tax effective $XXX $XXX items.
XXXX. less to buyback ME&T the in favorable a expect to compared in XXXX. the less cash positive, XXXX share impact per implies of we be This share While to deploy should profit free to flow as have impact
Industries By partially segment, Resource Transportation. lower by sales in in & Construction will Energy sales offset Industries and be growth
driven For unfavorable drive sales we on slightly outlook anticipate lower price and In realization XXXX, Industries, realization. XXXX the we in price by Resource should Construction are Jim and volume. and lower Industries, sales we the benefits Energy XXXX. based though expect of sales slightly versus engines unfavorable lower Higher described constrained, investments through flow growth, begin beyond Transportation remain large price in the making and so & sales to volumes favorable in
end our another dealer not of in by also of Currently, services We year do anticipate anticipate XXXX. in each segments. growth a we inventory primary change significant of machines the
on free flow. ME&T Moving to cash
the We to our of billion in top of target expect be half $XX range $X billion. to
capability the The first payout quarter about incentive impacted a year's last to $X.X CapEx we billion of anticipate XXXX $X.X by for of are our that cash year. XXXX in capital investment given continue to billion be on as investments We make compensation. will outflow related absolute growing of output a multiyear our business, right includes expand dollars. to volume focus This we disciplined engine mentioned large by OPEC the that last
lower assist Turning the your I'll the prior Starting to on some line, Slide provide XX. first versus the color top To quarter. with sales expect with modeling, we year.
more account For first we should machines. about sales primarily perspective, quarter for dealer year quarter a percentage year, the This lower by lower in basis see movements full typical XXX is our mainly be points. to which continue, inventory that as expectations year. pronounced and in is the impacts price, due of of decrease than we for in but sales first trend the typical sales a In our to anticipate XXXX,
is Transportation & year. growing sales expected to throughout seasonality Energy the show normal with
Let me explain.
in with industries machine beginning of range the reduce quarter, inventory being did fourth the This significantly and of middle enter range dealers construction towards at they dealer the as end around the inventories Although we top compares of the remain the XXXX. 'XX.
we result, the XXXX. than correspondingly a quarter expect to build that quarter billion inventory first $X.X the in they've built of less the them machine first As during
flat machine the see as dealer by the change X quarter have sales tailwind as we to in we fourth about inventory a expect similar years. don't the in seen to As year-end, inventory we expect dealer be last we should a
merchandising impact of year making second comparison greater first of for the as these to realization an price of unfavorable the post the for post-sales in due We machines price would expect of be in expect to half. in noticeable sales for half in programs. the also the impact third We impacts machines quarter the XXXX, programs first started the merchandising quarter easier
So headwind price. expect to lower by year, and of anticipate volume we as impact impacted lower by from which and year volume gas be first in we sales versus segment, Transportation, should power the impact Construction fourth & dealer transportation unfavorable first generation & first in in saw Industries and positive XXXX. the quarter changes should versus prior in pull lower lower sales together sales. users, offset quarter The to anticipate the similar the to for sales Energy price in quarter, Transportation. in Price in and about what of impacted In Resource by lower we inventory continued realization. we quarter, Energy the Industries the is the In sales similar oil by be strength prior the
do in Now enterprise by from the the Unfavorable volume anticipate the lower by Energy with a factors first partially the primarily discussed first will expect which machines Transportation. quarter of quarters price for I've machine we is in and machines. principally realization I'll the seasonal offset favorable price margin dealer margins is Compared are to lower due lower year, in enterprise color and to year, compared quarter typically inventory be & slightly price. Volume occur of we quarter stronger to sales in the to to impacted users XXXX. the prior due build margin operating first lower-than-usual previously, provide on remaining adjusted Though expectations. not profit the some trend
there stronger will the the in fourth improvement first margins first impact volume quarter is volume offsetting in quarter expect We due than the be to typical. in quarter
-- year the the points. see of which is basis year first quarter anticipate prior year to year, do XXX XXX due the in generally price. first the compared to the lower to to prior the fourth benefit margin Industries, in compared quarter quarter range the typically in as segment in expect and we we the By primarily We of Construction to volume lower margins this of not see
more and Resource In price prior we the than Again, the margin in the the to volume in Industries, and realization. lower unfavorable mainly anticipate some year, of favorable realization unfavorable quarter this as is to slightly more year margin costs expect quarter and due & will higher offset volume versus is In manufacturing offset compared price price first Energy lower mix lower as fourth Transportation, by impacts. favorable we be neutral. prior
as a half detail quarter provided the does first model that I and for revenues the which help the is to a set this in top out full margins for sales reminder, range. expectations impact decrease and and you the year is year the not Again, in slight our earlier, of target
the with So turning was X%. range to year $XX adjusted flow ME&T billion margin third billion billion. operating Adjusted profit range. $XX.XX profit summarize. target the our of Slide free share. to record XX, by our of year's of at of XX.X% $X.X exceeded profit last top of per of straight target was share exceeded let the top me per record cash This Adjusted $X
in and growth. services slight half anticipate sales, of of the drop of we in ME&T flow we while cash be a XXXX, profit top range free target we year range, the operating adjusted the For expect top to and half margin the another expect
to And continue execute for We we'll strategy with long-term your our growth. profitable that, questions. take
