By
Anders Bylund
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More Articles
January 28, 2008
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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
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FY 2007
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FY 2006
|
Change
|
|
Sales
|
$44,958
|
$41,517
|
8.3%
|
|
Net Profit
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$3,541
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$3,537
|
0.1%
|
|
EPS
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$5.37
|
$5.17
|
3.9%
|
|
Diluted Shares
|
659.5
|
683.8
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(3.6%)
|
Get back to basics with the income statement.
Margin Checkup
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FY 2007
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FY 2006
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Change*
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Gross
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27.4%
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28.8%
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(1.4)
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Operating
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11.0%
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12.0%
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(1.1)
|
|
Net
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7.9%
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8.5%
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(0.6)
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*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
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Assets
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FY 2007
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FY 2006
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Change
|
|
Cash + ST Invest.
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$1,122
|
$530
|
109.8%
|
|
Accounts Rec.
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$8,249
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$8,607
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(4.2%)
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|
Inventory
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$7,204
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$6,351
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13.4%
|
|
Liabilities
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FY 2007
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FY 2006
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Change
|
|
Accounts Payable
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$4,723
|
$4,085
|
15.6%
|
|
Long-Term *
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$3,639
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$3,694
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(1.5%)
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*Excluding financial services borrowings.
The balance sheet reflects the company's health.
Cash Flow Highlights
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FY 2007
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FY 2006
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Change
|
|
Cash From Ops.
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$7,935
|
$5,799
|
36.8%
|
|
Capital Expenditures
|
$3,040
|
$2,675
|
13.6%
|
|
Free Cash Flow
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$4,895
|
$3,124
|
56.7%
|
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Owner Earnings
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$2,298
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$2,464
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(6.7%)
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Free cash flow is a Fool's best friend.
Competitive Context
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Market Cap (in billions)
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Trailing
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CAPS Rating
|
|
General Electric (NYSE:GE)
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$345.7
|
15.8
|
****
|
|
Caterpillar
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$42.2
|
12.4
|
****
|
|
Deere (NYSE:DE)
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$36.5
|
21.1
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****
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|
Cummins (NYSE:CMI)
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$10.0
|
13.5
|
****
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Using the latest reported numbers from Capital IQ.
Keep your partners close and the competition in your vest pocket.
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