Caterpillar Company Analysis Essay - 4206 Words

Caterpillar Inc. Caterpillar Incorporated is the world’s largest producer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Caterpillars 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. Machi nery 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 Caterpillars 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.Show MoreRelatedCompany Analysis : Caterpillar Inc Company1638 Words   |  7 PagesCaterpillar Inc Company Analysis The Company For the last 90 years, Caterpillar Inc. continues making growth possible while promoting constructive change throughout the world. However, customers turn to Caterpillar for the assistance of expanding infrastructure, energy, and natural resources. Sales and revenues for 2014 were $55.184 billion netting $3.695 billion, which were just below 2013 numbers of $55.656 billion resulting in $3.789 billion. Caterpillar is the front-runner for the manufacturingRead MoreCaterpillar, Inc. Financial Analysis1743 Words   |  7 Pagesï ¿ ¼Caterpillar, Inc. 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As reported in Caterpillar’s 2008 Annual Report, Caterpillar is a worldwide company with 67% of their sales from outside of the United States (Caterpillar, 2008)Read MoreCase Study on Komatsu Limited1578 Words   |  7 PagesTakeuchi Mining Company was founded. A major expansion occurred in 1917 when the Komatsu Iron Works was established to manufacture mining equipment and machine tools. The name Komatsu came into existence in 1921 when iron works separated from the mining company to become KOMATSU ltd. Despite a name that means â€Å"little pine tree†, Komatsu produces line up of big equipment. The company is the world’s second largest manufacturer of construction and mining equipment, after Caterpillar Inc. KomatsuRead MoreEssay about Case Study: Caterpillar Inc.1240 Words   |  5 Pages1. Why was Caterpillar able to meet Japanese competition and succeed where other major US manufacturers failed? Due the leadership of Glen Barton, who was with Caterpillar from 1964 to 2004? 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