Summary
Caterpillar Inc.'s 2013 10-K filing reveals a company that, while a global leader in heavy machinery and engines, faced headwinds in 2013. Sales and revenues reached $55.656 billion. The company operates through four primary segments: Resource Industries, Construction Industries, Power Systems, and Financial Products. While the Construction Industries segment saw slight improvements and increased order rates towards the end of the year, sales declined due to currency impacts and dealer inventory adjustments. The Resource Industries segment experienced a significant sales decline driven by reduced capital spending from mining customers and dealer inventory reductions, leading to cost-cutting measures. The Power Systems segment saw engine sales decrease due to lower demand in electric power, petroleum, and rail applications, though the company is focused on expanding product offerings and integrating solutions. The Financial Products segment, primarily Cat Financial, continues to provide essential financing for Caterpillar products, though its results are tied to equipment sales and broader economic conditions. The company also highlighted its extensive global dealer network and ongoing investments in research and development, with R&D spending at 3.7% of sales in 2013.
Financial Highlights
50 data points| Revenue | $55.66B |
| Cost of Revenue | $40.73B |
| Gross Profit | $14.93B |
| R&D Expenses | $2.05B |
| SG&A Expenses | $5.55B |
| Operating Expenses | $50.03B |
| Operating Income | $5.63B |
| Net Income | $3.79B |
| EPS (Basic) | $5.87 |
| EPS (Diluted) | $5.75 |
| Shares Outstanding (Basic) | 645.20M |
| Shares Outstanding (Diluted) | 658.60M |
Key Highlights
- 1Caterpillar reported 2013 sales and revenues of $55.656 billion, positioning itself as a world leader in construction and mining equipment, engines, and turbines.
- 2The company operates through four key segments: Resource Industries, Construction Industries, Power Systems, and Financial Products (Cat Financial).
- 3Construction Industries experienced a slight sales decline in 2013, attributed mainly to unfavorable currency impacts (weaker Japanese yen) and dealer inventory management, though order rates showed improvement towards year-end.
- 4Resource Industries faced a significant sales decline due to reduced mining customer capital spending and lower dealer inventories, prompting cost-saving actions including workforce reductions and production slowdowns.
- 5Power Systems saw a decrease in engine sales driven by lower demand in electric power, petroleum, and rail sectors.
- 6Cat Financial, the company's finance arm, plays a crucial role in supporting sales of Caterpillar products globally.
- 7Caterpillar's extensive global dealer network, comprising 178 dealers across 182 countries, remains a key element of its distribution strategy.