What was the primary driver of Caterpillar's revenue growth in Q2 2011?

The primary driver of Caterpillar's revenue growth was a 37% increase in total sales and revenues, reaching $14.230 billion. This growth was primarily attributed to a significant increase in sales volume across all geographic regions and segments, driven by improving global economic conditions and demand for its products, particularly in developing countries and the mining sector.

How did the acquisition of Bucyrus International, Inc. affect Caterpillar's financial results?

The acquisition of Bucyrus International, Inc., completed in July 2011 for approximately $8.8 billion, was a significant strategic move. For the second quarter of 2011, the company incurred $204 million in acquisition-related costs, including losses on interest rate swaps, bridge financing, and advisory fees. These costs negatively impacted earnings per share by $0.20, but excluding these costs, profit per share showed a strong year-over-year improvement.

What is the outlook for Caterpillar's key business segments based on this report?

The outlook appears positive, with strong performance noted across most segments. Construction Industries saw significant sales volume increases due to economic growth in developing countries and fleet upgrades in developed countries. Resource Industries benefited from high commodity prices and increased mining investments. Power Systems sales and profit improved due to worldwide economic growth and demand for energy and industrial engines. Financial Products also demonstrated improved profitability due to higher earning assets and a lower provision for credit losses.

How is Caterpillar managing its debt and liquidity following the Bucyrus acquisition?

Caterpillar funded the Bucyrus acquisition using a mix of available cash, commercial paper borrowings, and approximately $4.5 billion in long-term debt issued in May 2011. The company's debt-to-capital ratio for Machinery and Power Systems increased to 42.6% due to the new debt but remained within its target range of 35-45%. Caterpillar continues to maintain strong operating cash flow and has significant credit facilities available, indicating a solid liquidity position to support its growth strategies.

CAT 10-Q Quarterly Report Q2 FY2011 — Revenue, Net Income, EPS

Summary

Caterpillar Inc. (CAT) reported strong financial results for the second quarter and first half of 2011, driven by significant increases in sales and revenues across its Machinery and Power Systems segments, as well as improved performance in Financial Products. Total sales and revenues for the second quarter reached $14.230 billion, a 37% increase year-over-year, fueled by robust demand globally, particularly in developing countries. This surge in sales translated into a substantial 64% increase in operating profit. The company is actively pursuing strategic growth initiatives, highlighted by the recent completion of the Bucyrus International, Inc. acquisition, a major move to expand its presence in the mining industry. While acquisition costs related to Bucyrus impacted earnings per share by $0.20 in the quarter, the underlying operational performance remained very strong, with profit per share of $1.72 excluding these costs. Caterpillar's financial position remains solid, with significant operating cash flow generation and a focus on maintaining its financial strength while investing in future growth.

Financial Highlights

43 data points

Beta

Revenue

$14.23B

0.2% Gross Margin

Net Income

$1.01B

0.1% Net Margin

EPS (Diluted)

$1.52

Total Assets

$73.61B

Free Cash Flow

$2.53B

Financial Statements

Beta

Revenue	$14.23B
Cost of Revenue	$10.30B
Gross Profit	$3.23B
R&D Expenses	$584.00M
SG&A Expenses	$1.26B
Operating Expenses	$12.63B
Operating Income	$1.60B
Net Income	$1.01B
EPS (Basic)	$1.57
EPS (Diluted)	$1.52
Shares Outstanding (Basic)	645.50M
Shares Outstanding (Diluted)	667.20M

Key Highlights

1Total sales and revenues increased by 37% to $14.230 billion for the second quarter of 2011, driven by strong global demand and higher sales volume across all segments.
2Operating profit saw a significant increase of 64% to $1.601 billion for the second quarter, reflecting the positive impact of higher sales volume and improved price realization.
3Profit per share (EPS) was $1.52 for the second quarter, or $1.72 excluding $204 million in Bucyrus acquisition costs, representing a substantial improvement year-over-year.
4Machinery and Power Systems operating cash flow increased to $4.111 billion in the first half of 2011, up from $2.525 billion in the prior year period, indicating strong operational cash generation.
5The company completed the acquisition of Bucyrus International, Inc. for approximately $8.8 billion, a strategic move to bolster its position in the mining equipment sector.
6The debt-to-capital ratio for Machinery and Power Systems increased to 42.6% due to debt issued for the Bucyrus acquisition, but remained within the company's target range.
7Financial Products segment showed improved profit, up 70% to $172 million for the second quarter, driven by higher net yield on earning assets and a decrease in provision expense.

CATERPILLAR INC Quarterly Report for Q2 Ended Jun 30, 2011

Summary

Financial Highlights

Key Highlights

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