Caterpillar reported third-quarter 2011 profit per share of $1.71, up 40 percent from $1.22 per share in the third quarter of 2010. Profit was $1.141 billion, an increase of 44 percent from $792 million in the third quarter of 2010. Sales and revenues of $15.716 billion, an all-time record for the company, were up 41 percent from $11.134 billion in the third quarter of 2010.
The company cited continued improvement in demand, a company-wide focus on effectively managing the ramp-up through the Caterpillar Production System, and focused cost management as the keys to its third-quarter sales, revenues and profits.
Excluding the impacts of the recent acquisition of Bucyrus International, Inc. (Bucyrus), profit was $1.93 per share, up 58 percent from a year ago. Sales and revenues excluding Bucyrus were $14.581 billion, up 31 percent from the third quarter of 2010. Excluding the impacts of Bucyrus, it was an all-time record quarter for both sales and revenues and profit.
“I am pleased with how we’re performing and optimistic about demand for our products, and that is why we are moving forward with needed investment in our business to support our long-term growth opportunities,” said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman. “This was the best quarter for sales in our history, and our order backlog is at an all-time high. Excluding Bucyrus impacts, this was also our best profit quarter in history, and year-to-date operating profit as a percent of sales was higher than any full year in more than three decades. Machinery and Power Systems operating cash flow has also been very positive, with the first nine months of the year better than any full year in our history,” Oberhelman added.
Terex Corp. announced income from continuing operations for the third quarter of 2011 of $36.9 million, or $0.33 per share, compared to a loss from continuing operations of $90.9 million, or $0.84 per share, in the third quarter of 2010. Excluding the sale of shares of Bucyrus International, Inc. common stock, acquisition related items and certain other items in both periods, income from continuing operations would have been approximately $33 million, or $0.30 per share, in the third quarter of 2011 compared to a loss from continuing operations of approximately $35 million, or $0.32 per share, in the third quarter of 2010.
Net sales from continuing operations were $1,803.6 million in the third quarter of 2011, an increase of 67.7 percent from $1,075.8 million in the third quarter of 2010. Excluding the impact of the acquisition of Demag Cranes AG, net sales increased approximately 44 percent from the comparable prior year period. Adjusting for the translation effect of foreign currency exchange rate changes and the impact of the acquisition of Demag Cranes AG, net sales increased approximately 35 percent from the comparable prior year period. Income from operations was $52.6 million in the third quarter of 2011, as compared to income from operations of $3.6 million in the third quarter of 2010, an improvement of $49.0 million. Excluding the impact of certain items in the current year period, income from operations as adjusted would be approximately $78 million. Excluding the impact of certain items in the prior year period, income from operations as adjusted would have been approximately $5 million.
“Overall, our performance continues to improve in terms of net sales and operating profitability, even during this economically uncertain time,” said Ronald M. DeFeo, Terex’s chairman and chief executive officer. We continue to see end-market demand recover in our Aerial Work Platforms (AWP) business. We are optimistic about the rest of the year and 2012 for AWP as we are having earlier than normal conversations with customers who have indicated a willingness and need to purchase more equipment. Our construction segment benefited from strong demand for material handlers, compact equipment and backhoe loaders, but supplier disruptions and higher input costs are still impacting some construction businesses. In cranes, improved production execution allowed us to deliver orders from our backlog of larger mobile cranes and port equipment while margins improved both as a result of higher sales volumes and reduced costs from restructuring announced earlier this year. Our materials processing (MP) business had another solid quarter led by strong demand for larger capacity machines worldwide.”
Volvo Construction Equipment (Volvo CE) recorded a strong performance in the third quarter of 2011. Net sales in the three months of July-September rose by 18 percent to SEK 14,958 M (12,710 M). Adjusted for currency movements, net sales increased by 27 percent during the period. Order bookings were also up considerably, with the value of the order book at Sept. 30 being 30 percent higher than on the same date in 2010.
The third quarter of 2011 also saw healthy levels of profitability, with the company posting a 6 percent improvement in operating income, to SEK 1,403 M, up from SEK 1,330 M in the same period the year before. This good performance was achieved despite having to absorb the negative impact of currency movements (primarily the weakening of the US dollar), which reduced profitability in the period by SEK 400 M. This also dented Volvo CE’s otherwise strong operating margin, which at 9.4 percent was slightly down from the 10.5 percent achieved in Q3 2010.
“The markets for our construction equipment continue to expand, even in China where we have strengthened our position as market leader despite a government-induced slowdown that is designed to curtail inflation,” said Pat Olney, president and chief executive of Volvo CE. “The recoveries in Europe and North America are especially pleasing, and market conditions for the remainder of 2011 continue to be favorable.”