Caterpillar Inc. announced sales and revenues of $42.588 billion for 2010, an increase of 31 percent from $32.396 billion in 2009. Profit in 2010 was $2.700 billion, an increase of 202 percent from 2009 profit of $895 million. Profit per share of $4.15 was up from $1.43 in 2009. Excluding redundancy costs, profit per share in 2009 was $2.18.
Fourth-quarter sales and revenues were $12.807 billion, an increase of 62 percent compared with $7.898 billion in the fourth quarter of 2009. Fourth-quarter profit of $968 million was 317 percent higher than profit of $232 million in the fourth quarter of 2009. Profit per share of $1.47 was up from $0.36 per share in the fourth quarter of 2009. Excluding redundancy costs, profit for the fourth quarter of 2009 was $0.41 per share.
"As the global economy continued to improve, the demand for Caterpillar products increased substantially with fourth-quarter sales and revenues up 62 percent. 2010 was a good year, and we accomplished a great deal. We substantially ramped up production, improved factory efficiency, drove Machinery and Engines (M&E) operating cash flow to an all-time record, launched a number of capacity additions and new product programs to prepare us for the future and announced several substantial acquisitions," said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman.
"It was also a good year for employees, customers and stockholders. Excluding acquisitions, our workforce grew by approximately 19,000 people in 2010. Led by U.S. exports of $13.4 billion, about 7,500 of the 19,000 were added in the United States, representing a 15-percent increase in our U.S. workforce. We renewed our focus on customers with continued improvement in product quality and significantly increased production. For stockholders, we raised our dividend, and Caterpillar stock performance was the best among the companies comprising the Dow Jones Industrial Average in 2010," Oberhelman added.
We expect sales and revenues in 2011 to exceed $50 billion and profit to be near $6.00 per share. That is an increase from sales and revenues of $42.588 billion and profit of $4.15 per share in 2010. The outlook for 2011 includes the acquisition of Electro-Motive Diesel, Inc. (EMD), but does not include the acquisitions of Motoren-Werke Mannheim Holding GmbH (MWM) or Bucyrus International, Inc. (Bucyrus) because they have not yet closed.
Continued growth in developing countries, improving economies in North America and Europe, strong demand for mining products and the need for our dealers to add to inventories and replenish rental fleets should all contribute to higher sales in 2011. The increases are likely to be mitigated somewhat by small declines in later cycle industries, such as turbines and marine engines.
"The outlook reflects our expectation that the world economy will continue to recover and that Caterpillar is positioned to win by providing customers with products and support that are unmatched in the industry. It's this commitment to helping our customers succeed that will drive results for Caterpillar," Oberhelman said.
"We are also investing in longer-term growth. We made a number of announcements in 2010, including three new facilities in the United States and five outside the United States, primarily related to multi-year increases in capacity for key products like mining trucks and excavators. Our 2011 outlook for capital expenditures is about $3 billion—with more than half in the United States. These investments in our future will add cost in the short term but are essential to be prepared for continued growth as the economic environment improves," he added.
"We feel good about our performance in 2010, coming off a very challenging 2009. We have updated our strategy, aligned the organization and are clearly focused on our customers. Investments are being made in new product development, additional capacity and strategic acquisitions that position us well for long-term growth and profitability," Oberhelman said.