Caterpillar said COVID-19 is beginning to negatively impact the earthmoving giant's supply chain - and warned more facility closures may be on the horizon.
The company temporarily shut down the Mapleton foundry this week. Caterpillar employees are considered essential employees under Gov. J.B. Pritzker's "stay-at-home" order aimed at containing the spread of the novel coronavirus.
In a revised Form 8-K filed with the Securities and Exchange Commission Thursday morning, the company indicated it's exploring alternative delivery methods, including air freight; redirecting orders to other distribution centers; and prioritizing the redistribution of "the most impactful parts."
"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,' said the statement. "It will be determined by the duration of the pandemic, its geographic spread, business disruptions and the overall impact on the global economy."
The company was already warning investors of an uncertain road ahead in 2020 back during its January earnings call. That 2020 outlook was revoked Thursday, with updated guidance expected on April 28.
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