Caterpillar Inc. this week announced all-time record second-quarter 2012 sales and revenues of $17.37 billion, a 22-percent increase from second-quarter 2011 sales and revenues of $14.23 billion. Profit per share in the quarter was $2.54, also an all-time quarterly record, and a 67-percent increase from second-quarter 2011 profit per share of $1.52. Profit was $1.69 billion in the quarter, an increase of 67 percent from $1.02 billion in the second quarter of 2011.
"I am very pleased with Caterpillar's record-breaking performance in the second quarter,” said Caterpillar chairman and CEO Doug Oberhelman. “Our employees, dealers and suppliers across the globe are doing a superb job of executing our strategy. They have helped deliver the highest level of financial performance for any quarter in our history for our stockholders and outstanding value for our customers.
"Our global footprint, the breadth of industries we serve and our extensive line of products and services has helped us achieve these record-breaking results during this time of heightened economic uncertainty, and execution has been outstanding. Whether you look at cost control, delivery performance, safety, quality, new product introductions or margin rates, Caterpillar's operational performance in the quarter was excellent. It's what drove second-quarter profit and is providing a solid foundation as we balance our positive long-term view of the world economy with the high level of uncertainty we're all seeing today."
The sales and revenues outlook range for 2012 is now $68 to $70 billion with profit of about $9.60 per share at the middle of the sales and revenues outlook range. The previous outlook for sales and revenues was a range of $68 to $72 billion with profit of about $9.50 per share at the middle of the sales and revenues outlook range.
The adjustment to the high end of the sales and revenues outlook is a result of weaker economic conditions in much of the world and about $1 billion of negative currency impacts. Since the introduction of the company’s outlook in January of 2012, the U.S. dollar has strengthened and has negatively impacted Caterpillar’s sales and revenues outlook as its sales in currencies other than the U.S. dollar are translating into fewer U.S. dollars.
The profit outlook improved as a result of better underlying operating performance, partially offset by the negative impact from an increase in our estimated annual tax rate for 2012.
"Caterpillar's success in 2012 is occurring despite U.S. construction activity that remains depressed and well below the prior peak, the problems facing Eurozone economies and economic concerns in China," Oberhelman said. "While we're expecting a record year in 2012, we understand the world is facing economic challenges, and if it becomes necessary, we are prepared to act quickly as we did in late 2008 and 2009. While we're prepared, the good news is, this doesn't feel like 2008. Interest rates are low, central banks are prepared to inject more liquidity if needed, and housing is coming off lows, not a peak, and seems to be improving."
Caterpillar worldwide full-time employment was 132,825 at the end of second-quarter 2012 compared with 108,175 at the end of second-quarter 2011, an increase of 24,650 full-time employees. The increase was primarily a result of acquisitions and higher sales volume. Acquisitions, primarily Bucyrus, MWM and ERA Mining Machinery Ltd., added 16,322 people to the global workforce.
Cat Financial reported second-quarter 2012 revenues of $668 million, a decrease of $7 million, or 1 percent, compared with the second quarter of 2011. Second-quarter 2012 profit after tax was $104 million, a 3-percent decrease from the second quarter of 2011.
The decrease in revenues was principally because of a $28 million unfavorable impact from lower rates on new and existing finance receivables and operating leases and $9 million lower net gains from returned or repossessed equipment, partially offset by a $33 million favorable impact from higher average earning assets.
New retail financing in the second quarter of 2012 was $3.8 billion, an increase of $938 million, or 32 percent, from the second quarter of 2011. The increase was a result of growth across all operating segments, primarily in the Asia/Pacific and Mining operating segments.
"We are very pleased with Cat Financial's performance in the second quarter," said Kent Adams, Cat Financial president and vice president of Caterpillar Inc. "Our portfolio continues to perform well, with lower past dues and a significant reduction in write-offs compared to a year ago. Additionally, our global team continues to focus on our captive finance role to help Caterpillar customers and dealers succeed, resulting in a significant increase in new retail financing during the second quarter."
Cat Financial, a wholly owned subsidiary of Caterpillar Inc., is headquartered in Nashville, Tenn. Caterpillar Inc. is headquartered in Peoria, Ill.