Caterpillar Inc. posted sales and revenues of $32.4 billion for 2009, a 37-percent decrease compared with $51.3 billion in 2008. Profit per share was $1.43, a 75-percent year-over-year plunge.
Excluding redundancy costs of $.75 per share, 2009 profit was $2.18 per share.
Fourth-quarter sales and revenue were $7.9 billion, a 39-percent decrease compared with the fourth quarter of 2008 total of $12.9 billion. Profit per share for the quarter was $.36, a 67-percent decrease from Q408.
“While the economy in 2009 was the worst our company has experienced since the Great Depression, I’m proud to report that Team Caterpillar responded in an extraordinary way,” said chairman and CEO Jim Owens. “We delivered solid profitability and cash flow, and dramatically improved our balance sheet. In addition, we had continued access to debt markets, improved our liquidity position, expanded credit facilities and made a conscious decision to hold more cash. As a result, we maintained our dividend rate, made significant pension contributions and continued to invest in new products and selective new capacity.”
Caterpillar’s 2009 profit of $895 million was 75-percent down from $3.56 billion in 2008, as a result of lower sales volume.
Caterpillar expects 2010 sales and revenues to increase 10 to 25 percent in 2010, and expects profit to be about $2.50 per share at the midpoint of the sales and revenue range. The company sees signs of improvement, particularly in China and developing countries and — to a lesser degree — North America, Europe and Japan.
“We’re encouraged by signs of improving demand,” said Owens. “Dealer sales to end users are up, order rates are up, dealer inventories came down in 2009, and we’re seeing stronger service parts sales. As a result, we are focused on increasing production levels in our plants and with our suppliers. Although we expect efficiency improvements in 2010, higher production will require selective increases in employment, and we’ve already recalled more than 500 previously laid-off production employees.”
Caterpillar is based in Peoria, Ill.
