Summary
Caterpillar Inc. (CAT) reported first-quarter 2015 results with total sales and revenues of $12.7 billion, a 4% decrease compared to the same period in 2014. This decline was primarily attributed to unfavorable currency impacts, notably the weakening of the Euro and Japanese Yen, and lower sales volumes across most regions, particularly in Asia/Pacific and Latin America. Despite the revenue dip, profit per share increased by 26% to $1.81, driven by a significant reduction in restructuring costs and a $120 million gain from the sale of the company's remaining interest in its former third-party logistics business. The Machinery, Energy & Transportation (ME&T) segment saw a 4% decrease in sales, largely due to lower end-user demand and currency headwinds, though North American sales saw a 9% increase driven by dealer inventory changes and improved demand in oil and gas applications. The Financial Products segment experienced a 3% revenue decrease, mainly due to lower average financing rates. The company's operating profit improved due to lower restructuring expenses and favorable currency impacts, despite increased SG&A and R&D spending, including a notable rise in stock-based compensation expense.
Financial Highlights
47 data points| Revenue | $12.70B |
| Cost of Revenue | $8.76B |
| Gross Profit | $3.20B |
| R&D Expenses | $524.00M |
| SG&A Expenses | $1.25B |
| Operating Expenses | $11.00B |
| Operating Income | $1.70B |
| Net Income | $1.25B |
| EPS (Basic) | $2.06 |
| EPS (Diluted) | $2.03 |
| Shares Outstanding (Basic) | 604.90M |
| Shares Outstanding (Diluted) | 612.70M |
Key Highlights
- 1Total sales and revenues decreased by 4% to $12.7 billion in Q1 2015 compared to Q1 2014.
- 2Profit per share increased by 26% to $1.81, benefiting from a $120 million gain on the sale of a logistics business and lower restructuring costs.
- 3Machinery, Energy & Transportation (ME&T) segment sales declined 4%, primarily due to currency effects and lower volume, but North America showed a 9% increase.
- 4Restructuring costs were significantly lower at $36 million in Q1 2015, down from $149 million in Q1 2014.
- 5Stock-based compensation expense increased significantly to $135 million from $53 million due to changes in vesting policies.
- 6Dealer machine and engine inventories increased by approximately $900 million in Q1 2015.
- 7The company expects profit to be lower in the remaining quarters of 2015 due to anticipated lower sales, unfavorable sales mix, and higher costs, particularly impacted by lower oil prices.