Summary
Caterpillar Inc. reported a profitable first quarter for 2010, a significant turnaround from a loss in the same period of 2009. Sales and revenues decreased by 11% year-over-year to $8.238 billion, primarily due to lower sales volumes in the Engines and Financial Products segments, although Machinery sales remained relatively stable. Despite the revenue decline, operating profit improved substantially, driven by lower manufacturing costs, the absence of significant redundancy charges from the prior year, and improved price realization. The company also experienced positive impacts from currency fluctuations. Looking ahead, Caterpillar raised its outlook for 2010, anticipating sales and revenues between $38 billion and $42 billion, and earnings per share between $2.50 and $3.25. This optimism is fueled by improving global economic conditions, particularly in developing economies in Asia/Pacific and Latin America, and increasing demand in the mining and energy sectors. The company is focused on ramping up production while maintaining cost management and efficiency.
Financial Highlights
43 data points| Revenue | $8.24B |
| Cost of Revenue | $5.89B |
| Gross Profit | $1.66B |
| R&D Expenses | $402.00M |
| SG&A Expenses | $932.00M |
| Operating Expenses | $7.73B |
| Operating Income | $508.00M |
| Net Income | $233.00M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 626.40M |
| Shares Outstanding (Diluted) | 643.50M |
Key Highlights
- 1First-quarter 2010 profit of $233 million ($0.37 per share) compared to a loss of $112 million ($(0.19) per share) in the first quarter of 2009.
- 2Total sales and revenues of $8.238 billion were down 11% from $9.225 billion in the first quarter of 2009.
- 3Machinery sales decreased 1% year-over-year, while Engines sales were down 28% and Financial Products revenues declined 4%.
- 4Operating profit improved significantly to $508 million from an operating loss of $175 million in Q1 2009, driven by lower manufacturing costs and the absence of redundancy costs.
- 5The company raised its 2010 outlook, projecting sales and revenues between $38 billion and $42 billion, and earnings per share between $2.50 and $3.25.
- 6Machinery and Engines operating cash flow turned positive at $921 million in Q1 2010, compared to a negative $320 million in Q1 2009.
- 7The company reported an increase in dealer-reported inventories and months of supply in North America, but overall inventories were below historical averages.