Citing supply chain difficulties, Caterpillar said it is temporarily suspending operations at certain facilities. It did not specify which manufacturing plants, product categories, or parts distribution centers might be affected. It also announced that it is withdrawing its financial outlook for 2020.
The company said its supply chain teams “have been executing business continuity plans” that could include using alternative sources and/or air freight, redirecting orders to other distribution centers, and prioritizing the redistribution of the most impactful parts.
Caterpillar said it is continuing to run the majority of its U.S. domestic operations and plans to continue operations in other parts of the world, as permitted by local authorities.
“The magnitude of the Covid-19 pandemic, including the extent of any impact on Caterpillar’s business, financial position, results of operations or liquidity, which could be material, cannot be reasonably estimated at this time due to the rapid development and fluidity of the situation,” the company said in a press release. “It will be determined by the duration of the pandemic, its geographic spread, business disruptions and the overall impact on the global economy.”
To protect the safety, health and well-being of employees, customers, dealers, suppliers and communities, Caterpillar said it continues to implement several preventive measures while also meeting the needs of global customers. They include increased frequency of cleaning and disinfecting of facilities, social distancing practices, remote working when possible, restrictions on business travel, cancellation of certain events and limitations on visitor access to facilities.