Summary
Caterpillar Inc. (CAT) reported a strong rebound in its third quarter of 2010, with sales and revenues increasing by 53% year-over-year to $11.134 billion. This significant growth was driven by a broad-based recovery in demand across developed and developing economies, particularly in the Machinery and Engines segments. Profit also saw a substantial increase, up 329% to $1.187 billion, with earnings per share rising to $1.22, a significant improvement from the prior year's $0.64. The company's strategic initiatives, including cost management and operational efficiencies from the Caterpillar Production System, contributed to improved profitability. The company also raised its full-year 2010 outlook for sales and revenues and profit per share, reflecting continued positive momentum. The nine-month performance also showed robust growth, with sales and revenues up 22% to $29.781 billion and profit up 495% to $2.672 billion. The company successfully completed the acquisition of Electro-Motive Diesel (EMD) in August 2010, which is expected to bolster its presence in the global rail industry. Caterpillar's financial position remains solid, with a lower debt-to-capital ratio and strong operating cash flow, positioning the company for continued growth.
Financial Highlights
42 data points| Revenue | $11.13B |
| Cost of Revenue | $7.75B |
| Gross Profit | $2.70B |
| R&D Expenses | $510.00M |
| SG&A Expenses | $1.15B |
| Operating Expenses | $9.95B |
| Operating Income | $1.19B |
| Net Income | $792.00M |
| EPS (Basic) | $1.25 |
| EPS (Diluted) | $1.22 |
| Shares Outstanding (Basic) | 632.60M |
| Shares Outstanding (Diluted) | 651.60M |
Key Highlights
- 1Total sales and revenues for the third quarter of 2010 reached $11.134 billion, a 53% increase from the prior year's $7.298 billion, driven by strong end-user demand across various regions.
- 2Operating profit surged to $1.187 billion, a 329% increase from $277 million in Q3 2009, reflecting higher sales volume, price realization, and improved manufacturing costs.
- 3Profit per common share (diluted) for the third quarter was $1.22, a significant increase from $0.64 in the same period last year.
- 4The company raised its full-year 2010 outlook for sales and revenues to $41-$42 billion and profit per share to $3.80-$4.00.
- 5The acquisition of Electro-Motive Diesel (EMD) was completed in August 2010 for approximately $928 million, adding to the company's rail industry offerings.
- 6Machinery and Engines (M&E) operating cash flow was $3.215 billion for the first nine months of 2010, compared to $1.535 billion for the same period in 2009.
- 7The Machinery and Engines debt-to-capital ratio improved to 39.1% at the end of Q3 2010 from 49.5% at the end of Q3 2009.