Caterpillar Raises Fiscal Year 2011 Revenue Guidance

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Last Update: 22-Jul-11 11:51 ET

Caterpillar (CAT $105.59 -6.00) reported second quarter earnings of $1.52 per share, including the Bucyrus acquisition, and $1.72 per share, excluding the Bucyrus acquisition, versus the Capital IQ Consensus Estimate of $1.78, which appears to exclude the Bucyrus acquisition.

Revenues rose 36.7% year/year to $14.23 billion versus the $13.55 bln consensus.

For fiscal year 2011, sees company expects earnings, including the Bucyrus acquisition, of $6.25 to $6.75 versus the $7.13 Capital IQ Consensus Estimate. On the top line, the company raised revenue expectations to $56 billion to $58 billion versus the $55.85 billion Capital IQ Consensus Estimate; fiscal year 2011 estimates appear to include the Bucyrus acquisition.

The company said, "Our 2011 financial results will include about a half year of Bucyrus results and most of the up-front and integration costs related to the acquisition. We expect that Bucyrus will add about $2 bln of sales in 2011 and negatively impact full-year profit by about $0.50 per share... Excluding the impact of Bucyrus, we are raising expectations for 2011, with sales and revenues in a range of $54-56 bln and profit per share of $6.75 to $7.25. That is an improvement from our previous outlook of $52-54 bln of sales and revenues and profit per share of $6.25 to $6.75.... While the economic recovery in the United States continues to be weaker than many expected, we're forecasting continued moderate economic expansion. That, coupled with stronger growth in the developing world, is driving higher sales for Caterpillar. There's been quite a bit of concern in the media over the past few months centered on China. While we've seen some softening of growth in China, dealer deliveries to end users were up in the second quarter of 2011 compared with the second quarter of last year and grew at a faster rate than the overall industry in China. In our view, China is doing a good job of balancing growth and inflation, and our expectations for China remain positive. That said, we can't lose sight of the significant growth that's going on around the world outside the United States and China. Economic activity and our business in Latin America, the Middle East, Africa, CIS and greater Asia are robust."