On Jan. 25, heavy machinery heavyweight Caterpillar
- 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 |
$345.7 |
15.8 |
|
Caterpillar |
$42.2 |
12.4 |
|
Deere |
$36.5 |
21.1 |
|
Cummins |
$10.0 |
13.5 |
Keep your partners close and the competition in your vest pocket.
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