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Last Update: 24-Oct-11 10:25 ET
Caterpillar Tops Third Quarter Expectations; Raises Guidance
Caterpillar (CAT $91.51 +4.12) reported third quarter earnings of $1.71 per share, $0.07 better than the Capital IQ Consensus Estimate of $1.64.
Revenues rose 41.2% year/year to $15.72 billion versus the $15.03 billion consensus.
The improvement was largely a result of $2.829 bln higher sales volume. While sales for new equipment and after-market parts improved, the most significant increase was for new equipment. Price realization improved $129 mln, and currency impacts added $356 mln. Bucyrus, which was acquired during the third quarter of 2011, added a further $1.135 bln in sales. Sales for Electro-Motive Diesel (EMD), which was acquired during the third quarter of 2010, increased $122 mln. Financial Products revenues improved slightly. The improvement in sales volume occurred across the world in all geographic regions and in nearly all segments; figures include Bucyrus acq.
For its fiscal year 2011, the company raised its earnings guidance to about $6.75 from $6.25 to $6.75 versus the $6.85 Capital IQ Consensus Estimate; raised fiscal year 2011 revenue to about $58 billion from $56 billion to $58 billion versus the $57.84 billion Capital IQ Consensus Estimate.
For its fiscal year 2012, the company expects to see revenue of $63.8 billion to $69.6 billion versus the $65.74 billion Capital IQ Consensus Estimate.
"Although there is a good deal of economic and political uncertainty in the world, we are not seeing it much in our business at this point. We believe continued economic recovery, albeit a slow recovery, is the most likely scenario as we move forward... We expect the world economy will continue to recover in 2012, with growth improving to about 3.5% (up from 3% in FY11). The United States and Japan should account for much of the improvement... Our order backlog has steadily increased throughout the year and is currently at a record level."
Revenues rose 41.2% year/year to $15.72 billion versus the $15.03 billion consensus.
The improvement was largely a result of $2.829 bln higher sales volume. While sales for new equipment and after-market parts improved, the most significant increase was for new equipment. Price realization improved $129 mln, and currency impacts added $356 mln. Bucyrus, which was acquired during the third quarter of 2011, added a further $1.135 bln in sales. Sales for Electro-Motive Diesel (EMD), which was acquired during the third quarter of 2010, increased $122 mln. Financial Products revenues improved slightly. The improvement in sales volume occurred across the world in all geographic regions and in nearly all segments; figures include Bucyrus acq.
For its fiscal year 2011, the company raised its earnings guidance to about $6.75 from $6.25 to $6.75 versus the $6.85 Capital IQ Consensus Estimate; raised fiscal year 2011 revenue to about $58 billion from $56 billion to $58 billion versus the $57.84 billion Capital IQ Consensus Estimate.
For its fiscal year 2012, the company expects to see revenue of $63.8 billion to $69.6 billion versus the $65.74 billion Capital IQ Consensus Estimate.
"Although there is a good deal of economic and political uncertainty in the world, we are not seeing it much in our business at this point. We believe continued economic recovery, albeit a slow recovery, is the most likely scenario as we move forward... We expect the world economy will continue to recover in 2012, with growth improving to about 3.5% (up from 3% in FY11). The United States and Japan should account for much of the improvement... Our order backlog has steadily increased throughout the year and is currently at a record level."
