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Caterpillar Incorporated Financial Essay

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Introduction Caterpillar Inc., probably better known as “CAT” throughout the world, headquartered in Peoria, Illinois, is a world leader in the manufacture of construction and mining equipment to include diesel and natural gas engines. It also has a financial services branch, Caterpillar Financial Services, earning approximately 7% of Caterpillar’s revenue by providing financing to many of Caterpillar’s customers who purchase its construction and mining equipment (Caterpillar, Inc., 2012). Caterpillar, today, is an extremely profitable and successful corporation indicative of the results it reported in its most recent quarterly report. Its 2012 earnings per share of $2.54, a quarterly record, is a 67% increase over its 2011 second quarter reported earnings per share. Revenues, likewise, set a record at the staggering number of $17.374 billion easily trumping its 2011 second quarter revenues of $14.230 billion. High revenues translated to record profits of $1.699 billion, an eye opening increase over the last year’s quarterly profits of $1.015 billion, a 67% increase (Caterpillar, Inc., 2012). Caterpillar trades on the New York Stock Exchange and closed today at $86.62, about the middle of its 52 week trading range (Market, 2012). Caterpillar’s profit outlook for the remainder of 2012 is very optimistic. Its projects its sales and revenues to be between $68 and $70 billion earning a profit of $9.60/share vice Caterpillar’s earlier forecast of approximately the same revenue range but earning $9.50/share (Caterpillar, Inc., 2012). Caterpillar’s financial performance and impressive billion dollar revenue numbers clearly signify Caterpillar as a domestic and world leader in its industry. Financially it is crushing its competition. Caterpillar’s biggest competitor is the universally known John Deere Company that reported third quarterly earnings of

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