https://www.miningweekly.com
Business|Construction|Financial|Freight|Mining|supply-chain|Equipment|Operations
Business|Construction|Financial|Freight|Mining|supply-chain|Equipment|Operations
business|construction|financial|freight|mining|supply chain|equipment|operations

Caterpillar says pandemic hits supply chain, demand

27th March 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

The continued spread of the Covid-19 pandemic is beginning to impact on construction and mining equipment manufacturer Caterpillar's supply chain, a possibility the company previously disclosed in February.

The US-based company indicated on Thursday that it was monitoring the situation closely and said that supply chain teams had been executing business continuity plans, which included using alternative sources and/or air freight, redirecting orders to other distribution centres, and prioritising the redistribution of the most impactful parts.

“Caterpillar is committed to continuing to execute these plans and will remain in close contact with its supply chain to monitor future possible implications, especially on production facilities,” the company assured.

Currently, Caterpillar said it would continue to run the majority of its US domestic operations and that it planned to continue operations in other parts of the world, as permitted by local authorities.

However, owing to uncertain economic conditions resulting in weaker demand, potential supply constraints and the spread of the Covid-19 pandemic and related government actions, Caterpillar announced that it would temporarily suspend operations at certain facilities.

The company added that it would continue to monitor the situation and cautioned that it could suspend operations at additional facilities as the situation warranted.

Caterpillar stated that its financial results for the first quarter and remainder of 2020 would be impacted by the continued global economic uncertainty associated with the Covid-19 pandemic.

As a result, Caterpillar withdrew its financial outlook for 2020 of January.

Caterpillar's first-quarter earnings announcement and conference call are scheduled for April 28.

The company asserted that its financial position remained strong. On a consolidated basis, Caterpillar ended 2019 with $8.3-billion of cash and available global credit facilities of $10.5-billion.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Projects

Showroom

GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.097 0.129s - 93pq - 2rq
Subscribe Now