Caterpillar (CAT) earnings preview: strong double-digit growth
Caterpillar has carefully assembled its brand and product portfolio over the past 100 years to create the largest construction and mining equipment manufacturer in the world. In a push to realize research and development and production efficiencies, Caterpillar has become the largest or second-largest manufacturer of virtually every product it makes while generating a double-digit return on invested capital.
While the company has entered new geographies organically, acquisitions have helped it create a robust product line. Typically, larger and higher-priced equipment is completely designed and manufactured in-house at Caterpillar, while smaller and lower-priced equipment is largely assembled from premanufactured components from various suppliers. Over the past decade, Caterpillar has increased its adoption of lean manufacturing principles, particularly with new hires from the automotive industry.
Caterpillar increased manufacturing segment revenue 33% to $12.2 billion compared with the prior year’s quarter. The industry has been in growth mode thanks to a combination of U.S. tax reform, strong economic activity, and positive commodity price trends. Caterpillar’s resource industries and energy and transportation segments clearly demonstrate this point, as both segments increased revenue 32% to $2.2 billion, and 27% to $4.3 billion, respectively.
finstead.com/bite/Caterpillar-CAT-earnings-preview-july-24-2018
While the company has entered new geographies organically, acquisitions have helped it create a robust product line. Typically, larger and higher-priced equipment is completely designed and manufactured in-house at Caterpillar, while smaller and lower-priced equipment is largely assembled from premanufactured components from various suppliers. Over the past decade, Caterpillar has increased its adoption of lean manufacturing principles, particularly with new hires from the automotive industry.
Caterpillar increased manufacturing segment revenue 33% to $12.2 billion compared with the prior year’s quarter. The industry has been in growth mode thanks to a combination of U.S. tax reform, strong economic activity, and positive commodity price trends. Caterpillar’s resource industries and energy and transportation segments clearly demonstrate this point, as both segments increased revenue 32% to $2.2 billion, and 27% to $4.3 billion, respectively.
finstead.com/bite/Caterpillar-CAT-earnings-preview-july-24-2018
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Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.