10-KPeriod: FY2007

CATERPILLAR INC Annual Report, Year Ended Dec 31, 2007

Filed February 22, 2008For Securities:CAT

Summary

Caterpillar Inc. reported record sales and revenues of $44.958 billion and record profit of $3.541 billion for the fiscal year ended December 31, 2007. This marks the fifth consecutive year of record sales and revenues and the fourth consecutive year of record profit, demonstrating consistent top-line and bottom-line growth. The company's strategic Vision 2020 continues to be a driving force, with significant progress noted in its "3Ps" of people, performance, and profitable growth. Caterpillar is on track to meet its 2010 goals for sales and revenues and earnings per share growth. Key initiatives like the Caterpillar Production System (CPS) are being implemented to enhance efficiency and product availability. The company also actively returned value to shareholders through a substantial stock repurchase program, buying back 33.5 million shares in 2007.

Financial Highlights

43 data points
Beta

Revenue

$44.96B

27.4% Gross Margin

Net Income

$3.54B

7.9% Net Margin

EPS (Diluted)

$5.37

Total Assets

$56.13B

Cash & Equivalents

$1.12B

Free Cash Flow

$7.96B

Financial Statements
Beta
Revenue$44.96B
Cost of Revenue$32.63B
Gross Profit$12.33B
R&D Expenses$1.40B
SG&A Expenses$3.82B
Operating Expenses$40.04B
Operating Income$4.92B
Net Income$3.54B
EPS (Basic)$5.55
EPS (Diluted)$5.37
Shares Outstanding (Basic)638.20M
Shares Outstanding (Diluted)659.50M

Key Highlights

  • 1Record sales and revenues of $44.958 billion and profit of $3.541 billion in 2007, indicating a strong financial performance.
  • 2Achieved fifth consecutive year of record sales and revenues and fourth consecutive year of record profit.
  • 3On track to meet 2010 Vision 2020 goals, including $50+ billion in sales and revenues and 15-20% EPS growth.
  • 4Significant stock repurchases in 2007, with 33.5 million shares bought back for $2.405 billion under a $7.5 billion program.
  • 5Expansion efforts in China are progressing, with new manufacturing operations in Wuxi and plans for small and medium diesel engine production.
  • 6Strategic acquisitions in 2007, including Blount's Forestry Division and Eurenov, to strengthen product offerings and market position.
  • 7Global demand remained strong outside of North America, particularly in emerging markets, driving overall business performance.

Frequently Asked Questions

Caterpillar achieved record sales and revenues of $44.958 billion and a record profit of $3.541 billion, or $5.37 per share. This performance represents the fifth consecutive year of record sales and revenues and the fourth consecutive year of record profit.

The company is executing its Vision 2020 strategy, aiming for $50+ billion in sales and revenues and 15-20% earnings per share growth by 2010. Key initiatives like the Caterpillar Production System (CPS) are being implemented to improve operational efficiency and product availability. The company also noted strong growth in China and continued planning for managing earnings during potential trough cycles.

In 2007, Caterpillar significantly advanced its commitment to stockholder value by repurchasing 33.5 million shares of its common stock at a cost of $2.405 billion. This was part of a Board-authorized $7.5 billion stock repurchase program intended to be completed by 2011.

Caterpillar faces several risks, including changes in government monetary and fiscal policies, evolving environmental regulations, fluctuations in commodity prices and demand in key industries like energy and mining, potential shortages and price increases of component products, currency fluctuations due to its global operations, competition, litigation, and risks associated with its financial services segment, such as credit and interest rate risks.