Caterpillar profits triple in 2010
By Chris Sleight27 January 2011
Caterpillar's net profits for 2010 hit US$ 2.7 billion, three times the figure of US$ 895 million achieved in 2009. Revenues were up +31% to US$ 42.6 billion for the year, with sales of of machinery rising +53% year-on-year, while engine sales were up +6%.
Caterpillar saw the strongest growth last year in Latin America, with total revenues up +58% to US$ 6.15 billion. This was driven by a +68% rise in equipment sales, which hit US$ 4.29 billion.
Equipment sales growth in the Asia pacific region was not far behind at +67%, for a total of US$ 7.48 billion. However, flat engine sales in the region meant the company's total revenue rise was more subdued than in Latin America at +43%, for a total of US$ 10.3 billion.
Caterpillar's largest market last year continued to be North America, where revenues were up +30% to US$ 16.1 billion, driven by a +49% rise in equipment sales and a +12% increase in revenues from its engines business.
The Europe, Africa and Middle East (EAME) region was subdued in comparison, with revenues rising +13% to US$ 10 billion, thanks to a +36% rise in equipment sales. However, this was partly offset by a -6% drop in revenues from the engines business and a -14% drop in the sale of financial products.
The company expects revenues this year to exceed US$ 50 billion. Chairman & CEO Oberhelman said, "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."