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Construction equipment sales up 45 per cent for Caterpillar

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Caterpillar Inc. (NYSE:CAT) reported a 45 per cent increase in construction equipment sales, from $13.572 billion in 2010 to $19.667 billion in 2011. Sold under the Cat brand, Caterpillar’s construction equipment includes trucks, pavers, excavators, loaders and dozers.

PEORIA, Illinois

Caterpillar Inc. (NYSE:CAT) released its financial results Thursday, reporting a 45 per cent increase in construction equipment sales, from $13.572 billion in 2010 to $19.667 billion in 2011.

Total revenues for 2011 were $60.138 billion, up 41 per cent from $42.588 billion in 2010. All figures are in U.S. currency.

Sold under the Cat brand, Caterpillar’s construction equipment includes trucks, pavers, excavators, loaders and dozers.

Revenue for the Peoria, Illinois-based firm for the fourth quarter was $17.243 billion, up 35 per cent from $12.807 billion during the fourth quarter of 2010.

“Construction activity continued to grow in most developing countries,” Caterpillar stated in a press release. “In developed countries, despite a continued weak level of construction activity, sales increased. The increase was primarily a result of customers upgrading machine fleets by replacing older equipment and dealers refreshing equipment in their rental fleets.”

Profit for 2011 was $4.928 billion, up from $2.7 billion in 2010. Fourth-quarter profit increased year-over-year, from $968 million in 2010 to $1.547 billion in 2011.

On its balance sheet for Dec. 31, Caterpillar recorded total assets of $81.446 billion, including current assets of $38.128 billion, $7.08 billion in goodwill , $4.368 billion in intangible assets and $14.395 billion in property, plant and equipment. Total liabilities were $68.044 billion, including $28.561 billion in current liabilities, $10.956 billion for post-employment benefits, $8.415 billion in long-term debt due after one year for machinery and power systems and $16.529 billion in long-term debt due after one year in financial products.

Caterpillar predicts it will have sales in 2012 of $68 to $72 billion.

“We expect total U.S. construction spending, which, net of inflation, has declined since 2004, to finally begin to recover in 2012,” the company said. “We project a (1.5 per cent) increase in infrastructure-related construction and a (five per-cent) increase in non-residential building construction.”

The company is also expecting housing starts in the United States to exceed 700,000 in 2012, up from 607,000 in 2011.

DCN DIGITAL MEDIA

by Daily Commercial News

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