Caterpillar sales and revenues in the first quarter of 2014 were $13.241 billion, flat with the sales and revenues in the same period of 2013. The company’s first-quarter 2014 profit per share of $1.44, an increase from profit per share of $1.31 in the first quarter of 2013. The first quarter of 2014 included a negative impact of $0.17 per share for previously announced restructuring activities.
“Given the business and economic uncertainties around the world and continuing decline in our mining sales, I am pleased with our performance in the first quarter. We understand we don’t control the economy and have instead focused on what we can improve. We’re lowering costs, improving cash flow and driving value for our customers through the continued deployment of our lean manufacturing initiatives. We see the benefits of these actions in our first-quarter results and in improving market position for many of our products,” said Caterpillar Chairman and CEO Doug Oberhelman.
Operating profit for the first quarter of 2014 was $1.398 billion, an increase of $180 million from the same period in 2013. The increase was primarily the result of lower manufacturing costs (down $230 million), decreased SG&A and R&D expenses and the favorable impact of currency.
These favorable impacts were partially offset by higher restructuring costs of $142 million and lower sales volume. Additionally, Financial Products’ operating profit was lower primarily due to the absence of favorable reserve adjustments at Caterpillar Financial Insurance Services.
Worldwide full-time employment was 116,579 at the end of the first quarter of 2014 compared with 124,874 at the end of the first quarter of 2013, a decrease of 8,295 full-time employees. The flexible workforce decreased 955 for a total decrease in the global workforce of 9,250
Caterpillar’s outlook for 2014 sales and revenues remains unchanged at $56 billion in a range of plus or minus 5 percent.
The company’s expectations for Construction Industries have improved, and expectations for Resource Industries have declined. Caterpillar now expects Construction Industries’ sales will increase about 10 percent from 2013 — the previous expectation was an increase of about 5 percent. Caterpillar expects sales for Energy & Transportation to increase about 5 percent from 2013, which has not changed from the previous outlook.
The company expects Resource Industries’ sales to be lower than previously anticipated—down about 20 percent from 2013. The previous outlook expected a decline of about 10 percent. The decline in expectations is a result of continued low order rates for mining equipment. The company expects mining orders will begin to improve at some point, but not likely in time to increase Resource Industries’ sales in 2014.