Caterpillar reported a second-quarter 2013 profit per share of $1.45, down from $2.54 in 2012. Sales and revenue were down to $14.621 billion, down 16 percent from $17.374 billion in the second quarter of 2012. Second-quarter profit declined 44 percent, from $1.699 billion in 2012 to $960 million.
“We experienced headwinds during the quarter, and while we had a positive $135 million gain related to the Siwei settlement, it was more than offset by currency translation and hedging losses, an additional $1 billion of dealer machine inventory reductions and a decline of $1.2 billion in our own inventory. While these were significantly negative to profit in the second quarter, our outlook doesn’t reflect additional currency losses or reductions in our inventory during the second half of 2013. As a result, we expect profit to improve in the second half of the year,” said Caterpillar Chairman and CEO Doug Oberhelman.
The company has revised its 2013 outlook to reflect sales and revenue in a range of $56 to $58 billion, down from the previous outlook of $57 to $61 billion. The previous profit per share outlook of $7.00 at the middle of the sales and revenues outlook range has been revised to $6.50. Oberhelman attributes the reduction to an expected reduction in dealer machine inventory.
“During the second quarter, dealers increased their utilization of inventory from our product distribution centers, which allows them to meet customer demand with less inventory,” Oberhelman said. “With the sharp reduction in dealer inventory and the decline in mining, 2013 is turning out to be a tough year and we've already taken action to reduce costs.”
In his statement, Oberhelman referenced the factory shutdown and layoffs in the first half of the year and indicated that the company will take “additional cost reduction measures in the second half of 2013.”