On Jan. 25, heavy machinery heavyweight Caterpillar (NYSE: CAT) released earnings for the 2007 fiscal year -- a period ending Dec. 31, 2007.
- Domestic machinery sales were slow at 11% below the 2006 level, thanks to "the collapse in housing construction" and lower demand from rock quarries and other basic materials extractors. But outside these Yankee-Canadian borders, machinery sales increased 33%.
- The same story played out in the engines segment, only amplified: Overall engine sales improved 6% despite a hair-raising 59% North American drop.
- Our CAPS players seem to like heavy machinery a lot. Get a free CAPS account and go see what's up with that international imbalance.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
FY 2007 |
FY 2006 |
Change | |
|---|---|---|---|
|
Sales |
$44,958 |
$41,517 |
8.3% |
|
Net Profit |
$3,541 |
$3,537 |
0.1% |
|
EPS |
$5.37 |
$5.17 |
3.9% |
|
Diluted Shares |
659.5 |
683.8 |
(3.6%) |
Get back to basics with the income statement.
Margin Checkup
|
FY 2007 |
FY 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
27.4% |
28.8% |
(1.4) |
|
Operating Margin |
11.0% |
12.0% |
(1.1) |
|
Net Margin |
7.9% |
8.5% |
(0.6) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
FY 2007 |
FY 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,122 |
$530 |
109.8% |
|
Accounts Rec. |
$8,249 |
$8,607 |
(4.2%) |
|
Inventory |
$7,204 |
$6,351 |
13.4% |
|
Liabilities |
FY 2007 |
FY 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$4,723 |
$4,085 |
15.6% |
|
Long-Term Debt* |
$3,639 |
$3,694 |
(1.5%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
FY 2007 |
FY 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$7,935 |
$5,799 |
36.8% |
|
Capital Expenditures |
$3,040 |
$2,675 |
13.6% |
|
Free Cash Flow |
$4,895 |
$3,124 |
56.7% |
|
$2,298 |
$2,464 |
(6.7%) |
Free cash flow is a Fool's best friend.
Competitive Context
|
Market Cap (in billions) |
Trailing P/E Ratio |
CAPS Rating | |
|---|---|---|---|
|
General Electric (NYSE: GE) |
$345.7 |
15.8 | |
|
Caterpillar |
$42.2 |
12.4 | |
|
Deere (NYSE: DE) |
$36.5 |
21.1 | |
|
Cummins (NYSE: CMI) |
$10.0 |
13.5 |
Keep your partners close and the competition in your vest pocket.
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