24.10.2011

Cat profits up 90 percent

Caterpillar has reported a 44 percent jump in revenues for the nine months to the end of September and a record third quarter.

Nine month revenues were $42.9 billion - 44 percent up on the same time last year, while new machine sales increased 45 percent to $40.8 billion. Sales growth has come from all regions, but Europe and Asia lead the way at 51 and 55 percent respectively. Pre-Tax profits were up 90 percent to $4.75 billion.

The third quarter saw revenue growth continue at similar levels, with total sales up 41 percent to $15.7 billion and new machines sales up 444 percent to $15,6 billion. Pre–tax profits grew by more than 47 percent to $1.63 billion.

Caterpillar chief executive Doug Oberhelman said: “I am pleased with how we’re performing and optimistic about demand for our products, and that is why we are moving forward with needed investment in our business to support our long-term growth opportunities.”

“This was the best quarter for sales in our history, and our order backlog is at
an all-time high. Excluding Bucyrus impacts, this was also our best profit quarter in history, and year-to-date operating profit as a percent of sales was higher than any full year in more than three decades. Machinery and Power Systems operating cash flow has also been very positive, with the first nine months of the year better than any full year in our history,”

The company says that while Eurozone government debt problems, U.S. difficulties in raising the federal debt limit and signs of slowing economic growth have caused confidence indicators to decline in the third quarter it does not believe that it result in a return to recession.

It adds that all of its indicators suggest slow growth for the rest of the year. With a stronger year in 2012 and an ongoing shortage of new equipment, in spite of plans to ramp up some production.