Heavy equipment maker Caterpillar Inc. on Monday said its fourth-quarter profit fell 55 percent from a year ago to $697 million, or $1.04 per share, on lower sales and a $580 write off of ERA Mining Machinery Ltd.þþRevenue fell 7 percent to $16.1 billion. Caterpillar said dealers reduced inventories by about $600 million, lowering sales by $1.4 billion. As a result, Caterpillar reduced its inventory by $2 billion.þþÿThe $2 billion inventory reduction in the fourth quarter was a remarkable effort, but we're not done. Reduced production levels are likely to continue at least through the first quarter of 2013 until inventories and dealer order rates move back in line with end-user demand,ÿ said Doug Oberhelman, Caterpillar's chairman and chief executive.þþFull-year profit was up 15 percent to $5.68 billion, or $8.48 per share, on revenues of $65.9 billion.þþÿConsidering the weak economy in the United States, along with much of Europe in recession and China slowing, we had a solid year,ÿ Oberhelman said. ÿOur incremental operating profit pull through was very good, we made progress adjusting inventory levels, and our quality and safety indicators continued to improve.ÿ
Source: Chicago Tribune
