Caterpillar has invested more than $2.5 billion to increase capacity throughout the world and has a goal of $55 to $60 billion in revenue in 2012, CEO Doug Oberhelman told an analysts and investors presentation at the New York Stock Exchange this week.
“We have streamlined our organization from the top down and our leadership team is driving an intense focus on helping our customers succeed,” Oberhelman said. “From our factory floors to our research and development laboratories and everywhere else across the company, we have the talent in place to win, and as we execute this strategy, we will deliver greater value to our customers, our stockholders and our employees.”
Oberhelman touted the company’s Caterpillar Production System, which has already resulted in gains in product quality, cost savings and employee safety, he said, adding that the CPS is the key reason Caterpillar’s manufacturing efficiency has improved in every quarter since the end of 2008.
“Our primary goal for stockholders is delivering total shareholder returns over the business cycle in the top 25 percent of the S&P 500,” Oberhelman said. “To do that, we believe that we need to deliver compound annual earnings per share growth of 15 to 20 percent over the business cycle. We performed well during the downturn in 2009, and so far this year we’re doing better than we expected as we came into 2010. Last year, we discussed our 2012 profit goal of sales and revenues in a range of $55 to $60 million, and earnings per share of $8 to $10. That’s still our goal for 2012. We are on the path to 15 to 20 percent growth over the cycle.”
During the past two months, Caterpillar has announced a series of investments to open new facilities, expand existing operations, develop a new mining shovel product line and expand into the locomotive business with the acquisition of Electro-Motive Diesel. “These recent investments total $2.5 billion that Caterpillar is putting to work over the next several years in the United States, Brazil, China and India,” Oberhelman added. “Our leadership team will be held accountable to deliver on these goals so that we can help our customers become more profitable.”
