Caterpillar delivers record sales and profits up 83%

Aaron Morby 11 years ago
Share

Construction machinery giant Caterpillar recorded its biggest yearly growth rate for sales and profit since 1947.

The big rebound in fortunes was driven by acquisitions, increased demand for mining equipment, high commodity prices and sales growth in construction machinery and parts during the year.

For 2011, the company’s revenue rose 41% from 2010 to $60.1bn, shattering the company previous record high level from 2008. Profit increased 83% to $4.93 billion, or $7.40 a share.

“We’re expecting 2012 to be another year of good growth,” Caterpillar Chief Executive Doug Oberhelman said.

“We expect 2012 to be a new sales record at a time when construction activity in the United States and Europe–two large markets for us–are still depressed.”

Results in brief

Caterpillar Inc.
Sales $60.1bn, up 40%; profit $4.9bn, up 83%

Construction machinery
Sales $19.7bn, up 45%; profit $2bn, up 163%
Resource industries
Sales $15.6bn, up 80%; profit $3.3bn, up 86%
Power systems
Sales $20.1bn, up 33%; profit $3bn, up 33%
Financial products
Sales $3bn, up 2%; profit $587m, up 27%

It said business investment in both the Eurozone and the United Kingdom had grown faster than the overall economies, a trend it planned to continue. These businesses improved cash flow and needed to upgrade capital stocks.

The company said it was more optimistic than it was three months ago that a global recession won’t occur in 2012 and expects the threat of a recession in Europe from the sovereign-debt crisis to ease by the middle of the year.

Cat said it anticipated the global economy will expand by 3.3% this year, modestly better than in 2011.

As a result the firm plans to invest about $4bn on capital expenditures this year, compared with $2.6bn last year.

To meet growing demand it boosted the workforce by 14,000 last year, more than half outside the United States.

The company said it exported nearly $20 billion worth of goods in 2011, representing a third of its total revenue for the year.

Latest plant news

Vac UK puts in another giant order for £10m of machines

20 new Longo Rhino excavators add to specialist's impressive fleet
10 months ago
Vac UK

Construction materials cost increases hit 40-year high

Steel and timber soar quickest with rises set to continue next year
1 year ago

Cementation Skanska switches all large-scale plant to bio-fuel

Piling contractor commits to Green D+ fuel after big HS2 site trial
1 year ago

JCB targets first hydrogen diggers by end of 2022

Plant giant is investing £100m in developing super-efficient hydrogen engines
1 year ago

House builder backs plant warning cameras on all sites

Countryside commits to AI proximity warning cameras on all site telehandlers
2 years ago

Police launch specialist plant theft busting unit

ACE unit will focus on tackling organised plant theft gangs
2 years ago

On-board breaker takes suction excavator to new level

Specialist manufacturer cracks problem with world first design innovation
2 years ago

Construction plant shortages start to bite

Smaller excavator delivery dates being pushed to 2022
2 years ago

Laing O’Rourke joins switch to electric cars

Plan to transition 1,000-car fleet to all-electric by 2025
2 years ago

JCB to hire 400 agency workers in production push

Demand for machines has rebounded sharply in Europe and North America
2 years ago

Strong trading lifts hirer P Flannery revenue to £116m

Revenue soars to record high for fast-growing plant hirer
2 years ago

Plant hire firm plans £33.8m tourism development

Perthshire site will see construction of hotel, lodges and transport museum
2 years ago

New pothole machine delivers road repairs four times faster

JCB Pothole Pro machine can repair a pothole in under eight minutes and at half the cost of a road gang
2 years ago

Wernick acquires Robert Purvis Plant Hire’s portable accommodation fleet

Wernick boosts presence in Scotland
2 years ago

Plant hirer fined £220k after crane nearly hits apprentice

Court hears how apprentice forced to leap for his life
2 years ago

JCB launches electric telehandler and dumper

Stand-alone rapid charger unit also unveiled to support E-Tech range
2 years ago

City Hire expands guaranteed tool hire service

Equipment delivery time guarantee extended beyond London
2 years ago
City Hire

Three sisters set-up plant hire business

Finnegan sisters buy first kit after securing funding deal
2 years ago

Fox Bros snaps up north west hirer Clive Hurt

North West haulier and earthworks contractor now on the hunt for bigger jobs
2 years ago

Speedy trials electric taxis as tool delivery vans

Converted red taxicabs can carry two pallets up to 800kg
2 years ago

Major plant hirer Vp sees revenues rebound

Hire revenues back to 80% of pre-Covid level
3 years ago

Flannery trials first electric tele at HS2 site

Skanska Costain Strabag JV to roll out more machines across HS2
3 years ago

Tower crane lifts end long climb to work for operators

Laing O'Rourke trials mast climbing lifts for tower crane operators at London site
3 years ago

JCB powers up first hydrogen fuelled digger

JCB in race to lead the world on hydrogen-powered plant
3 years ago

Self driving plant to be standard on road jobs by 2035

Highways England launches 15-year plan for a 'digital revolution'
3 years ago

JCB switches to online sales for first time

Micro, mini excavators and one tonne dumpers can now be bought online
3 years ago

JCB plans to cut 950 jobs

JCB chief warns furlough scheme was never going to be enough to cope with demand halving
3 years ago

New trainee plant operator scheme ready to launch

Industry and client-led apprenticeship will help to train next generation of operators
3 years ago

JCB resumes production at five UK factories

Thermal imaging cameras to be used in factories to ID workers with fevers
3 years ago

Plant theft soars as construction sites close

Thieves taking advantage of coronavirus impact to steal site equipment
3 years ago

Contractor services