Caterpillar Annual Report 2011: Sales, Revenue and Stock Performance
CAT: Stock Quote & Summary Data
$ 109.36 1.78 1.65%
Jul. 15, 2011 Market Closed
What Does We Do
Caterpillar is a leader in the machinery industry. The company, based out of Peoria, Illinois, makes and sells construction equipment, mining equipment, diesel and natural gas engines, and gas turbines. The company is almost a century old having been founded in 1925 as Caterpillar Tractor Company.
2010 Company Results of Caterpillar
Led by new Chief Executive Officer Doug Oberhelman, the company had sales of $42.59 billion. This was an increase from 2009 in sales. The company also posted a profit per share of $4.15. The increases in 2010 from 2009 can be taken with a grain of salt, as 2009 was heavily impacted by the financial meltdown of the United States and World economies. The results of 2010 are still down from the peak of 2008 financial results.
Caterpillar Annual Revenue in 2010 was $42.59 billion. Two thousand nine’s revenue was $32.40 billion. The 2010 revenue comes in slightly down from the results of 2008 when the company posted revenue of $51.32 billion.
The revenue breaks down into three areas:
o Machinery $27.77 billion
o Engines $12.10 billion
o Financial Products $2.7 billion
o The company ships many products to countries outside of the United States. Caterpillar reports exports by the following geographical breakdowns:
o EAME (Europe and Middle East) $4.5 billion
o Latin America $3.7 billion
o Asia Pacific $3.5 billion
o Canada $1.7 billion
Caterpillar made three major acquisitions in the fiscal 2010 year. These deals that were done will help ensure that Caterpillar keeps making its profits for years to come.
The companies acquired were:
Electro Motive Diesel $820 million
Electro Motive Diesel is one of the leaders in the manufacturing of locomotives with diesel engines. The company holds a thirty percent market share in the category, competing against General Electric. The move by Caterpillar will make the newly owned company part of its wholly owned subsidiary Progress Rail Services.
MWM Holding $810 million
MWM Holding was purchased by Caterpillar from a private equity firm. The company is a German manufacturer of engines which run on gas.
Bucyrus International $8.8 billion
The deal for Bucyrus is one of the largest in Caterpillar’s history and is set to be approved by Bucyrus shareholders in 2011.
These three acquisitions were the largest of the nine deals which Caterpillar made in 2010. All the deals should bring in more revenue for the company. Since 1951, the company has made fifty one acquisitions. The most deals made in one year was done in 2010 by Caterpillar due to increased competition for industrial products and consolidation among companies.
Caterpillar’s stock trades on the New York Stock Exchange with the symbol CAT. The stock was the best performing stock of the Dow Jones Industrial Average. Higher dividends were paid to CAT shareholders for the seventeenth year in a row. The stock rose over sixty percent from the beginning of 2010 to the end of 2011.