Caterpillar Inc. Caterpillar Incorporated is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Caterpillar's headquarters are located in Peoria, Illinois, United States. The company operates in three principal lines of business: machinery, engines, and financial products. The machinery segment includes the design, manufacture, marketing, and selling of all kinds of machinery such as; tractors, forestry and mining machinery, off-highway trucks, and paving products. The machinery segment also includes logistics services for other companies. The second business segment that Caterpillar operates in is engines. This includes the design, manufacture, marketing, and …show more content…
As reported in The Globe and Mail on March 22, 2012, Raymond James analyst Theoni Pilarinos points out that Caterpillar’s latest figures, while still impressive, show a moderate decrease in sales growth. Machinery sales in February fell to 21 percent from 27 percent in January, while engines sales growth decreased to 13 percent from 22 percent. This somewhat troubling trend also extended to Caterpillar's global operations. In the Asia/Pacific region, growth slowed from 31 percent in December 2011 to 20 percent in February 2012 (CBS News March 20, 2012).
This drop in sales may suggest that Caterpillar has reached its’ peak and is likely to come back down to Earth, along with their stock price. It is never smart to invest in a company that has likely reached their peak, since there is nowhere to go but down. Investors should be wary of this news and should probably hold off on buying Caterpillar’s stock until the price inevitably comes back down due to the slow sales growth.
Financial Ratios Potential investors examining Caterpillar’s stock’s value will see that Cat outperforms the competition in almost every area concerning stock valuation. Earnings per share is a measure of a company’s net income relative to the number of shares of common stock outstanding. Caterpillar’s earnings per share of 7.40 dominated the industry in 2011. The second best EPS in the industry was 3.91, posted by CNH Global.
Caterpillar Incorporated has been providing innovative customer solutions for over 90 years - from the track-type tractor that gave us our Caterpillar name, to the diesel engine, the elevated sprocket, the hybrid excavator and more. Benjamin Holt builds his first steam traction engine tractor in 1890. The Holt Manufacturing Company and C. L. Best Tractor Co. are merged to form the Caterpillar Tractor Co. In 1951 Caterpillar introduces its first self-propelled wheel tractor-scraper. Caterpillar faces fierce competition from Japanese manufacturer, Komatsu Ltd. Caterpillar is a global leader with worldwide resources to support your career. They are focused on their employees and their relationship staying true to the values that have shaped the foundation of the company for years (Caterpillar, 2015).
While the economic downturn slowed business activities worldwide in 2009, Caterpillar Inc. and John Deere continued to deliver strong financial results in 2010. Caterpillar and John Deere stayed true to their mission and vision and business strategies to achieve solid results as they go through 2010. Sales, profit margin, and earnings per share have increased for both Caterpillar and John Deere in 2010.
VIII. Earnings per Share (EPS) is used by analysts and potential investors to evaluate the profitability of a company.
Caterpillar’s main industry of machinery has many barriers to entry which makes it difficult for new organisations to enter the market. It is a mature and highly competitive industry with few dominant competitors who have cemented their position over the decades. Furthermore, these corporations have sustained a competitive advantage over any new entrant that tries to enter into the industry.
Long the pride of Peoria, Illinois, Caterpillar, Inc. has established itself as a premier global manufacturing powerhouse whose commercial construction, transportation and engine solutions have come to symbolize durability, quality, and economic progress. This project paper examines the operational and financial numbers resulting from the company’s global sales reach. This paper reviews the publically available corporate financial results for the last decade. This financial data review will be expanded to incorporate how operating and investing activities and results have also impact the Caterpillar bottom line. The paper will conclude with a short summary analysis providing team conclusions to whether the Caterpillar
The world of finance in today’s market is one of numerous ups and downs. With the global economy in constant flux, it is more important than every for companies to examine their financial status and compare their position to that of the relative market as well as their fellow competitors. In order to better understand the ways in which today’s managers examine their position on the market and evaluate their current value as a company we will examine the financial data of Lockheed Martin Corporation and perform a detailed financial analysis on the company. In this
Ralph Lauren Corporation (NYSE:RL) is well known in the apparel clothing field. The corporation engages in the design, marketing and distribution of lifestyle product. This analysis paper will illustrate the current financial situation and forecast the future free cash flow based on the previous financial statement and financial data collected. These information and forecast are served for the potential investor to have a general understanding of RL Corporation and make the right choice on their money.
Arthur W. Perdue’s quest for excellence in the poultry business began in 1917. Perdue started his company as a table-egg poultry farm. He slowly expanded his egg market by adding a new chicken coop every year. Arthur’s son Frank joined the family business in 1939 after leaving school at the end of his the second year. In 1950 Frank took over leadership of Perdue Farms, which had over 40 employees at the time.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. General Motors was founded 1908, in Flint, Michigan and currently employs approximately 284,000 people around the world. GM's global headquarters is the Renaissance Center located in Detroit, Michigan, USA, They currently manufacture their cars and trucks in 35 different countries. Its European headquarters are based in Zurich, Switzerland, and its Holden headquarters are located in Melbourne, Victoria, Australia. In 2007, 9.37 million GM cars and trucks were produced globally under the following 12 brands: Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and
In January 2006, company-owned bottling operations were brought together to form the Bottling Investments operating group, now the second-largest bottling partner in the Coca-Cola system in terms of unit case volume.
Following a solid rally of 28% in the first ten months this year, Caterpillar’s (NYSE:CAT) shares plunged nearly 7% in the last month alone, thanks to falling financials and lower guidance for the full year. CAT blamed economic weakness throughout the world for a consistent decline in its financials over couple of consecutive quarters.
Caterpillar, Inc is a U.S. based company that develops and manufactures machinery, engines, and financial products. The firm’s net worth is more than 74 billion dollars. The company’s headquarters is currently located in Peoria, Illinois. Jim Umpleby was recently elected as the Chief Executive Officer of Caterpillar, Inc. in early 2017. Previously, Jim had been serving as the company’s Vice president from 2010 to 2013 and as group president from 2013 to 2016. During March of 2017, the company was being investigated by the federal government for tax fraud and its offshore tax practices. According to an article in the New York Times, for over thirteen years the firm had moved their taxable income into a Swiss Bank to avoid any tax responsibilities
Caterpillar has developed a global reach and presence that is unmatched in the industry. Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Their goal is to help their customers be more successful by working with them than with
Caterpillar is an American company that manufactures construction and mining equipment. The company operates in a mature and cyclical product market and has underwent various restructuring plans. In the early 1980s and 1990s, Caterpillar was nearly put out of business due to the intense competition it faced. The entrance of Komatsu, a rival Japanese company, threatens Caterpillar’s position in the market. With Caterpillar refusing to lower its premium prices at that time while Komatsu offers relatively lower prices for similar products, the latter was slowly gaining the market
Caterpillar is an American Corporation that design build and sells heavy construction/destruction machinery. Caterpillar is the largest manufacturer of construction and mining equipment, they make everything from diesel and industrial gas engines to locomotives with more than US$89 billion in assets, Caterpillar was ranked number one in its industry. Caterpillar Inc. began in 1925 with a merger of the Holt Manufacturing Company and the C. L. Best Tractor Company, creating a new entity, the California-based Caterpillar Tractor Company was born