Caterpillar Inc. (NYSE:CAT) announced measures today to cut costs and help preserve cash as the ongoing COVID-19 pandemic continues to affect its business. Chief Executive Officer Jim Umpleby, as well as other executives, managers and salaried workers will have base pay frozen for 2020, reports Bloomberg.
Incentive bonuses will also not be paid out this year. Company spokeswoman Kate Kenny said, "these decisions are difficult and were not made lightly, but we must act with a sense of urgency to respond to this extremely challenging situation created by the pandemic."
Last week, Caterpillar announced the pandemic impacts on its supply chain have forced it to withdraw its previous financial outlook for 2020. The company said it continues to operate its facilities around the world as conditions permit. Headquartered in Deerfield, Illinois, the company has more than 500 locations around the world including manufacturing, dealers, and research and development.
While the majority of its U.S. operations also continue to run, some domestic operations have temporarily shut down due to business conditions and the pandemic impacts. It said it may continue to suspend some operations if needed.
Caterpillar said its financial position remains strong, with $8.3 billion in cash and available credit facilities of $10.5 billion, at the end of 2019. It did not say whether its dividend will be affected. The company will provide another update with its first quarter earnings announcement, expected on April 28, 2020.