29.07.2012

CAT up 23%

Construction equipment manufacturer Caterpillar has reported a 23 percent rise in first half revenues.

Total revenues for the six months to the end of June were $33.35 billion, of which equipment sales represented $31.97 billion – 24 percent higher than last year. Pre-tax profits jumped 57 percent to $4.9 billion. The backlog/order book at the end of June was $28.2 billion – 11 percent up on a year ago but eight percent lower than at the end of the first quarter.

Looking at the second quarter revenues increased 22 percent to $17.37 billion, of which $16.68 billion was equipment sales – 23 percent higher than in the same quarter of 2011. Pre-tax profits leapt over 90 percent to $2.6 billion.

Geographically North America was strongest with sales up 31 percent, followed by Asia Pacific up 25 percent, Europe up 15 percent and South America up nine percent.

Chief executive Doug Oberhelman said: “I am very pleased with Caterpillar’s record-breaking performance in the second quarter. Our employees, dealers and suppliers across the globe are doing a superb job of executing our strategy. They have helped deliver the highest level of financial performance for any quarter in our history for our stockholders and outstanding value for our customers.”

“Our global footprint, the breadth of industries we serve and our extensive line of products and services have helped us achieve these record-breaking results during this time of heightened economic uncertainty, and execution has been outstanding. Whether you look at cost control, delivery performance, safety, quality, new product introductions or margin rates, Caterpillar’s operational performance in the quarter was excellent. It’s what drove second-quarter profit and is providing a solid foundation as we balance our positive long-term view of the world economy with the high level of uncertainty we’re all seeing today.”

Vertikal Comment

CAT is on a totally different level to any other company we cover, but its results reflect a similar message to what we have seen from the likes of Terex and JLG etc...

It is interesting to note that the backlog slipped in the last quarter as inventory increased. As a result of this CAT has edged its top end full-year revenue forecast down a notch from $72 to $70 billion, but left its lower level/worst case estimate at $68 billion.