Financial Report Financial reports from the largest companies of the world

Caterpillar increased anual profits strongly

The profit of American company Caterpillar, which is the largest manufacturer of construction equipment in the world has increased fourfold in the fourth quarter of 2010 due to increased demand for heavy machines worldwide. The company management said it expected a profit of nearly $ 6 per share this year, which exceeded market expectations. The President and CEO of Caterpillar Doug Oberhelman said the expected improvement in sales this year because of "continued growth in emerging markets, improved economies in North America and Europe and strong demand for mining products." The strong quarterly reports on Caterpillar and the recent optimistic forecasts made by several large manufacturing companies in the U.S. show that momentum in the industrial sector will continue, which bodes very beginning of 2011 for equipment manufacturers like Caterpillar. The Caterpillar's revenue improved dramatically last year after the construction and mining companies have begun to renew their equipment after cost cuts in 2009. Caterpillar has taken several important acquisitions last year, including, for 7.6 billion dollars the company's mining equipment Bucyrus International in November. Caterpillar's net profit increased to 968 million dollars in the fourth quarter, or 1.47 dollars per share, compared with 232 million dollars, or 36 cents a share, a year ago.
The largest producer of bulldozers, excavators, wheel loaders and other construction equipment in the world reported that revenue grew 62% to 12.81 billion dollars, after last year reported a sharp drop from 39 per cent. The sales of machinery and engines increased by 69 percent after declining from 41 percent a year earlier. For the whole year 2010 profit of Caterpillar rose by 202 percent to 2,7 billion dollars compared with 1.8 billion dollars for the full year 2009 earnings per share rose to 4.15 dollars from 1.43 dollars 2009