Caterpillar has reported all time quarterly record profits for Q1 2011, driven by the continuing improvement in global demand for its products and its focus on cost management.
First-quarter revenues of $12.949 billion were up 57 percent from $8.238 billion in the first quarter of 2010. Profit was a record $1.225 billion in the quarter, an increase of 426 percent from $233 million in the first quarter of 2010.
“I am very pleased with our first-quarter results—demand continued to improve, we increased production, cost control was excellent, and our operating profit margin improved,” said chairman and chief executive officer Doug Oberhelman.
“We have the right strategy, and it’s squarely focused on helping our customers win. Our new organization is in place, is focused on execution and is getting the job done. Given the scale of the volume ramp-up over the past year we also need to recognize the tremendous job that our suppliers and dealers have done to support us and our customers,” he added.
Oberhelman also took time to remember the recent terrible events in Japan, and put some context to them. “While we posted great financial results for the quarter, we were saddened by the disaster that struck Japan following the earthquake and tsunami in early March. Our thoughts and prayers are with the people in Japan who have been impacted by this disaster, including those at one Cat dealer, where two employees perished in the tsunami.
I want to recognize and thank our employees in Japan, along with Caterpillar employees around the world, our suppliers and dealers as they have worked tirelessly to minimize the impact on our operations from the disaster,” he added.
Caterpillar facilities were not damaged by the earthquake and tsunami, but many of its suppliers in Japan were impacted, causing sporadic production disruptions at facilities around the world.
Oberhelman was nevertheless upbeat about Caterpillar’s prospects for 2011. “We expect that the pace of world economic growth will support continued recovery in the key industries we serve. Caterpillar, along with our global dealer network, is uniquely positioned to serve our customers, who are building the infrastructure and delivering the commodities necessary for a growing world economy.
“As I recently told investors at our analyst meeting at the ConExpo trade show in Las Vegas—we’re on a roll and in a hurry. We have a great strategy, and we’re off to a good start, but we have room to improve and more to do to reach our goals for 2015,” he said.
