Caterpillar has reported record global revenue of $65.9 billion for 2012, a 10% increase on $60.2bn recorded in 2011.
Profit for the largest mining and construction equipment company in the world rose to $5.7bn, an increase of 15% from $4.9bn in 2011.
This came despite a drop in sales in the fourth quarter, as well as the $580 million loss the company was forced to write off due to accounting fraud at a Chinese company it acquired.
In the fourth quarter of the year sales dropped as dealers reduced inventories by about $600m.
“I’m extremely pleased with our performance on reducing inventory $2 billion in the fourth quarter,” said chairman and CEO Doug Oberhelman.
“As the world economy began to soften at midyear, we increased our focus on reducing inventory. Cat dealers also worked to lower their inventories, and, as a result, reduced their order rates during the second half of 2012. The result was a substantial reduction in our production levels and inventory.”
Reduced production levels are likely continue until at least March this year as dealers continue to lower their stock holdings, Oberhelman said.
In the Middle East, Cat said it saw sales grow in 2012, saying also that an increase in sales in the Middle East, Africa and CIS nations partially offset the drop in sales experienced in Europe.
“Most countries in Africa/Middle East and CIS have maintained economic policies close to those adopted in the financial crisis, and, as a result, growth has generally been sustained. We expect pro-growth policies will continue throughout 2013, allowing about 4% economic growth in Africa/Middle East and in the CIS,” said the company in its report.
Caterpillar said its outlook for 2013 was revenue in the range of $60 – 68 billion.
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