Summary
Caterpillar Inc. reported flat sales and revenues of $13.55 billion for the third quarter of 2014, a slight increase from $13.42 billion in the prior year period. Diluted earnings per share saw an increase to $1.63 from $1.45 in the prior year quarter, driven by improved operating profit and a significant reduction in outstanding shares due to ongoing stock repurchases. The Machinery, Energy & Transportation (ME&T) segment experienced mixed results with higher sales in Energy & Transportation offsetting declines in Resource Industries, while Construction Industries remained stable. The company continued its aggressive share buyback program, repurchasing $2.5 billion in the third quarter. For the first nine months of 2014, total sales and revenues were $40.94 billion, a marginal decrease from $41.25 billion in the prior year. Diluted earnings per share improved to $4.64 from $4.21, reflecting strong profit growth and cost management initiatives, despite lower overall sales volume. Restructuring costs of $344 million impacted the nine-month results. The company's financial position remained robust, with significant operating cash flow generated.
Financial Highlights
48 data points| Revenue | $13.55B |
| Cost of Revenue | $9.63B |
| Gross Profit | $3.12B |
| R&D Expenses | $533.00M |
| SG&A Expenses | $1.45B |
| Operating Expenses | $12.16B |
| Operating Income | $1.39B |
| Net Income | $1.02B |
| EPS (Basic) | $1.66 |
| EPS (Diluted) | $1.63 |
| Shares Outstanding (Basic) | 611.50M |
| Shares Outstanding (Diluted) | 622.80M |
Key Highlights
- 1Total sales and revenues for Q3 2014 were $13.55 billion, up 1% year-over-year.
- 2Diluted earnings per share for Q3 2014 increased to $1.63 from $1.45 in Q3 2013.
- 3Nine-month sales and revenues were $40.94 billion, down 1% year-over-year.
- 4Nine-month diluted earnings per share rose to $4.64 from $4.21 in the prior year period.
- 5Significant restructuring costs of $81 million in Q3 2014 and $344 million for the nine months ended September 30, 2014, impacted earnings.
- 6Caterpillar repurchased approximately $2.5 billion of its common stock in Q3 2014 and $4.2 billion year-to-date.
- 7Energy & Transportation segment sales increased by 13% in Q3, while Resource Industries sales decreased by 19% due to lower mining equipment demand.