News & Events

Caterpillar's Financial Results Surpass Wall Street's Expectations

Tuesday, July 21, 2009

Caterpillar Inc. reported today a second-quarter profit of $0.60 per share, down from the second quarter of 2008 but much higher than the $0.22 per share predicted by the nation’s leading financial analysts.  Wall Street’s reaction to Cat’s profits was seen in price gains after the announcement. Caterpillar stock traded as low as $29.91 per share in early July trading but had rebounded to a closing price of $39.46 after the announcement on Tuesday.

“With our dedicated employees, strong Dealer network and supply base, great lineup of products and the increasing impact of integrated service businesses, I am more confident than ever that we will strengthen our industry leadership as we work through this recession,” Owens added.

“Our profit this quarter, despite the sharp decline in sales, is a tribute to Team Caterpillar’s response to this severe global recession and the continued deployment of our economic trough strategy,” said Chairman and Chief Executive Officer Jim Owens.

“There is still a great deal of economic uncertainty in the world, but we are seeing signs of stabilization that we hope will set the foundation for an eventual recovery. Credit markets have improved significantly. Fiscal policy and monetary stimulus have been introduced around the world, and we are seeing signs, particularly in China, that they are beginning to work. In addition, we’ve seen many key commodity prices increase from their lows in the first quarter, and they are holding in a range that is usually positive for investment,” said Owens.