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Caterpillar Grows Second-Quarter Sales and Revenues 37 Percent

With continuing improvement in demand around the world, Caterpillar Inc. last week reported sales and revenues of $14.23 billion, a 37-percent increase from $10.41 billion a year ago.
Second-quarter 2011 profit per share was $1.72 excluding $204 million of expense related to the acquisition of Bucyrus, a 58-percent improvement from $1.09 in the second quarter of 2010. Including the impact of Bucyrus, profit per share was $1.52, up 39 percent from the second quarter of 2010. Profit was $1.02 billion in the second quarter of 2011, an increase of 44 percent from $707 million in the second quarter of 2010.

“Customer demand around the world continues to improve, and our sales and revenues reached an all-time record in the second quarter,” said Doug Oberhelman, chairman and CEO. “Our employees, dealers and suppliers should feel great about the way they’re responding to the increase in customer demand.

"The disaster in Japan had a $200 million negative impact on second-quarter sales, was negative on costs and efficiency and lowered operating profit nearly $60 million. However, the negative impacts from Japan are now behind us.”

The company said that demand growth and its investments through the end of June have resulted in adding 27,000 additional people to its global workforce since the beginning of 2010. It expects to continue hiring in 2011, particularly at its new facilities in Texas, Indiana, North Carolina and Ohio.

Excluding the impact of Bucyrus, the company is raising expectations for 2011. It expects sales and revenues in a range of $54 to $56 billion and profit per share of $6.75 to $7.25. That is an improvement from its previous outlook of $52 to $54 billion of sales and revenues and profit per share of $6.25 to $6.75.

“While we expect moderate U.S. economic growth, we believe a lack of confidence in the business climate is the major impediment to a stronger recovery and job creation,” Oberhelman said. “Lack of clarity on a U.S. deficit reduction plan, trade policy, regulation, much needed tax reform and the absence of a long-term plan to improve the country’s deteriorating infrastructure do not create an environment that provides our customers with the confidence to invest. We’re confident that as a country we’ll eventually get it right, and we’re positioning Caterpillar to be ready when we do. The scale of investment in our existing businesses coupled with our recent acquisitions put us in a unique position for growth and leadership as we drive forward to meet our 2015 goals.”

Caterpillar Inc., Peoria, Ill., is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

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