3rd Quarter Results

RNS Number : 7470Q

Caterpillar Inc

24 October 2011

 



Caterpillar Inc.                                     

3Q 2011 Earnings Release

                                                                                                October 24, 2011

FOR IMMEDIATE RELEASE

Caterpillar Third-Quarter Sales and Revenues an All-Time Record;

Thousands of Jobs Added, and the 2011 Outlook Improves

2012 Sales and Revenues expected to be up 10 to 20 percent

PEORIA, Ill.- Continued improvement in demand, a company-wide focus on effectively managing the ramp-up through the Caterpillar Production System, and focused cost management drove third-quarter sales and revenues and profit for Caterpillar Inc. (NYSE: CAT).  The company today reported third-quarter 2011 profit per share of $1.71, up 40 percent from $1.22 per share in the third quarter of 2010.  Profit was $1.141 billion, an increase of 44 percent from $792 million in the third quarter of 2010.  Sales and revenues of $15.716 billion, an all-time record for the company, were up 41 percent from $11.134 billion in the third quarter of 2010.

Excluding the impacts of the recent acquisition of Bucyrus International, Inc. (Bucyrus), profit was $1.93 per share, up 58 percent from a year ago.  Sales and revenues excluding Bucyrus were $14.581 billion, up 31 percent from the third quarter of 2010.  Excluding the impacts of Bucyrus, it was an all-time record quarter for both sales and revenues and profit.

"I am pleased with how we're performing and optimistic about demand for our products, and that is why we are moving forward with needed investment in our business to support our long-term growth opportunities," said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman.  "This was the best quarter for sales in our history, and our order backlog is at an all-time high.  Excluding Bucyrus impacts, this was also our best profit quarter in history, and year-to-date operating profit as a percent of sales was higher than any full year in more than three decades.  Machinery and Power Systems operating cash flow has also been very positive, with the first nine months of the year better than any full year in our history," Oberhelman added.     

"We were pleased to be able to continue adding jobs-about 4,800 in the third quarter, with more than 2,000 in the United States-as demand for our products and U.S. exports continued to improve.  This is a continuation of Caterpillar's strong hiring over the past couple of years.  In fact, since the beginning of 2010, we have added more than 30,000 jobs to our global workforce, not including the impact of our acquisitions and divestitures," Oberhelman said.

Revised 2011 Outlook      

The outlook for 2011 sales and revenues and profit has improved.  Total company sales and revenues are expected to be about $58 billion in 2011.  The previous outlook was a range of $56 to $58 billion.  The 2011 outlook includes about $2 billion in Bucyrus sales.  Excluding the impact of the Bucyrus acquisition, we expect sales and revenues will be about $56 billion in 2011; that is an improvement from the previous outlook of $54 to $56 billion.

The profit outlook has improved, and we now expect 2011 profit of about $6.75 per share.  The prior outlook was a range of $6.25 to $6.75.  The outlook includes a negative impact from the acquisition of Bucyrus of about $0.50 per share, which is unchanged from the previous outlook.  Excluding the impact of Bucyrus, we expect 2011 profit of about $7.25 per share; the prior outlook expected profit of $6.75 to $7.25 per share. 

"Although there is a good deal of economic and political uncertainty in the world, we are not seeing it much in our business at this point.  We believe continued economic recovery, albeit a slow recovery, is the most likely scenario as we move forward," Oberhelman said. "2011 has been an outstanding year for Caterpillar, and we are on pace for all-time record sales and profit," Oberhelman added. 

"In the United States, we were pleased with the bipartisan approach that recently resulted in passage of Free Trade Agreements with Colombia, Panama and South Korea.  That, along with growing bipartisan understanding that we need to do something positive about infrastructure in the United States, makes us hopeful that greater cooperation in Washington will result in actions that will help the economy, improve the prospects for job creation and help U.S.-based businesses compete around the world," Oberhelman said.

Preliminary 2012 Outlook      

The preliminary outlook for 2012 sales and revenues is based on improving, but slow, growth in the developed parts of the world with continuing improvement in sales from what are currently low levels.  Growth in developing countries in 2012 is expected to be similar to 2011, supporting higher sales of our products and services.  We expect sales and revenues to improve 10 to 20 percent from the 2011 outlook of about $58 billion.  The 2012 outlook includes a full year of Bucyrus-related sales of about $5 billion, up from a partial year of about $2 billion in 2011.

 "We're having a great year in 2011, and 2012 is shaping up to be better.  Our leadership team is working on plans for next year, and it looks like 2012 will see improvements in sales and revenues across our businesses," Oberhelman added.  "We are continuing to increase production levels for many of our products and expect that supply will remain tight in 2012.  That's why we are making strategic investments in our business to position Caterpillar for continued success well beyond 2012," Oberhelman said.  "Of course, we realize the world faces economic uncertainty and risk.  A key part of our planning process is to make sure we're prepared if the situation turns negative.  Each of our businesses prepares 'trough' plans-a standard practice at Caterpillar-to help us act faster should we need to take action," Oberhelman added. 

Notes:

-       Glossary of terms is included on pages 20-21; first occurrence of terms shown in bold italics.

-       Information on non-GAAP financial measures is included on page 22.

For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent.  With 2010 sales and revenues of $42.588 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.  The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.  More information is available at: http://www.caterpillar.com.

Caterpillar contact:  Jim Dugan, Corporate Public Affairs, [phone] (Office) or [phone] (Mobile)

FORWARD-LOOKING STATEMENTS

Certain statements in this release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are subject to known and unknown factors that may cause Caterpillar's actual results to be different from those expressed or implied in the forward-looking statements.  Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements.  All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions.  These statements do not guarantee future performance, and Caterpillar does not undertake to update its forward-looking statements.

It is important to note that Caterpillar's actual results may differ materially from those described or implied in its forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets Caterpillar serves; (ii) government monetary or fiscal policies and government spending on infrastructure; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) Caterpillar's and its customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks associated with our global operations, including changes in laws, regulations or government policies, currency restrictions, restrictions on repatriation of earnings, burdensome tariffs or quotas, national and international conflict, including terrorist acts and political and economic instability or civil unrest in the countries in which Caterpillar operates; (vi) Caterpillar's and Cat Financial's ability to maintain their respective credit ratings, material increases in either company's cost of borrowing or an inability of either company to access capital markets; (vii) financial condition and credit worthiness of Cat Financial's customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) international trade and investment policies, such as import quotas, capital controls or tariffs; (x) the possibility that Caterpillar's introduction of Tier 4 emissions compliant machines and engines is not successful; (xi) market acceptance of Caterpillar's products and services; (xii) effects of changes in the competitive environment, which may include decreased market share, lack of acceptance of price increases, and/or negative changes to our geographic and product mix of sales; (xiii) union disputes or other employee relations issues; (xiv) Caterpillar's ability to successfully implement the Caterpillar Production System or other productivity initiatives; (xv) adverse changes in sourcing practices of our dealers or original equipment manufacturers; (xvi) compliance costs associated with environmental laws and regulations; (xvii) alleged or actual violations of trade or anti-corruption laws and regulations; (xviii) additional tax expense or exposure; (xix) currency fluctuations, particularly increases and decreases in the U.S. dollar against other currencies; (xx) failure of Caterpillar or Cat Financial to comply with financial covenants in their respective credit facilities; (xxi) increased funding obligations under our pension plans; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) imposition of operational restrictions or compliance requirements if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards or adoption of new accounting standards; (xxv) adverse effects of natural disasters; and (xxvi) other factors described in more detail under "Item 1A.  Risk Factors" in Part I of our Form 10-K filed with the SEC on February 22, 2011 for the year ended December 31, 2010.  This filing is available on our website at www.caterpillar.com/secfilings

Click here to view Caterpillar Inc.'s complete 3^rd Quarter 2011 financial results release issued October 24, 2011.

http://www.rns-pdf.londonstockexchange.com/rns/7470Q_-2011-10-24.pdf

 

END

 

 

QRTLLFLRIVLSFIL