Caterpillar Inc’s Q03 2010 Profit Up 96%, Sales Up 53%, Raises 2010 Outlook

Caterpillar Inc (NYSE: CAT) reported Q03 2010 Profit of USD 792mm, 96% higher than the USD 404mm reported in the comparative 2009 period. Profit per Share increased to USD 1.22 from USD 0.64 a year ago. The increased profit was primarily attributable to higher sales volume, favourable price realization and improved manufacturing costs driven by its Caterpillar Production System, but was partially offset by higher taxes, incentive compensation and higher research and development expenses. Sales and Revenues gained 53% or USD 3.84B to USD 11.13B in the quarter, from USD 7.3B a year ago as sales volume made a USD 3.71B improvement.

The results demonstrate CAT’s focus on managing costs and improving its cash flow while continuing to boost production to meet consumer demand. Sales in developed Countries also added to the robust results, after plummeting in 2009. CAT subsequently revised its outlook for 2010, raising Sales and Revenues guidance to between USD 41B and USD 42B, an increase of 28% from 2009 at the midpoint and up from the prior forecast of between USD 39B and USD 42B. The Company also raised its Profit per Share outlook to range from USD 3.80 to USD 4.00, a more than 100% increase from 2009 at the midpoint and higher than the previous outlook of between USD 3.15 and USD 3.85.