CATERPILLAR INC Quarterly Report for Q1 Ended Mar 31, 2012

Summary

Caterpillar Inc. (CAT) reported a strong first quarter for 2012, with sales and revenues increasing by 23% to $15.981 billion compared to the same period in 2011. This growth was driven by higher sales volume across most segments and regions, supported by strategic acquisitions like Bucyrus and MWM. The company achieved a record quarterly profit per share of $2.37, a 29% increase year-over-year, reflecting effective cost management and increased production to meet growing global demand, particularly for mining and replacement products. While overall demand remains robust, with particular strength in mining products and the U.S. market for replacement parts, the company noted slowing demand in China and Brazil. Despite higher manufacturing and operating expenses related to production increases and capacity expansion, Caterpillar successfully leveraged its sales growth to improve operating profit margins. The Financial Products segment also showed significant improvement, contributing to the overall positive financial performance.

Key Highlights

• 1Total sales and revenues grew by 23% to $15.981 billion in Q1 2012 compared to Q1 2011.
• 2Profit per share reached a record $2.37, a 29% increase year-over-year, reflecting strong execution and cost control.
• 3Acquisitions of Bucyrus and MWM contributed significantly to revenue growth, adding $1.001 billion and $143 million respectively.
• 4Operating profit increased by 27% to $2.323 billion, driven by higher sales volume and price realization, despite increased manufacturing and operating expenses.
• 5Resource Industries segment sales surged by 73% due to the Bucyrus acquisition and strong demand in mining.
• 6Financial Products segment profit increased by 51% to $205 million, driven by higher average earning assets and a decrease in provision expense.
• 7Inventories increased by $2.0 billion (27%) to $16.5 billion, primarily to support anticipated higher sales.

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