Caterpillar Inc’s Q04 Profit Exceeds Expectations

As the global economy continues to improve, the demand for Caterpillar Inc’s (NYSE: CAT) product increased substantially with Q04 2010 Sales and Revenues up 62% to USD 12.81B from USD 7.9B a year earlier. Profit surged more than fourfold to USD 968mm from USD 232mm. Earnings per Share (EPS) of USD 1.47 topped analysts’ average estimate of USD 1.28. FY 2010 Profit more than tripled to USD 2.7B or USD 4.15 per share on Sales and Revenue growth of 31%. The solid results come as the Company ramped up production, improved factory efficiency, drove Machine and Engines operating cash flow to a record high, launched a number of capacity additions and new product programmes and announced several acquisitions.

In line with its robust performance, CAT now expects FY 2011 Sales and Revenues to exceed USD 50B and EPS to be near USD 6.00. “We feel good about our performance in 2010, coming off a very challenging 2009. We have updated our strategy, aligned the organization and are clearly focused on our customers. Investments are being made in new product development, additional capacity and strategic acquisitions that position us well for long-term growth and profitability,” said Chief Executive Officer (CEO) Doug Oberhelman.