Caterpillar Inc. Condensed Consolidated Statement of Results of
Operations (Unaudited) (Dollars in millions except per share data)
Three Months Ended Six Months Ended June 30, June 30, 2008 2007
2008 2007 Sales and revenues: Sales of Machinery and Engines
$12,797 $10,613 $23,776 $19,934 Revenues of Financial Products 827
743 1,644 1,438 Total sales and revenues 13,624 11,356 25,420
21,372 Operating costs: Cost of goods sold 10,036 8,300 18,645
15,436 Selling, general and administrative expenses 1,074 968 2,033
1,858 Research and development expenses 415 350 784 690 Interest
expense of Financial Products 279 279 563 550 Other operating
expenses 295 246 577 485 Total operating costs 12,099 10,143 22,602
19,019 Operating profit 1,525 1,213 2,818 2,353 Interest expense
excluding Financial Products 70 80 144 159 Other income (expense)
75 70 187 181 Consolidated profit before taxes 1,530 1,203 2,861
2,375 Provision for income taxes 434 385 854 760 Profit of
consolidated companies 1,096 818 2,007 1,615 Equity in profit
(loss) of unconsolidated affiliated companies 10 5 21 24 Profit
$1,106 $823 $2,028 $1,639 Profit per common share $1.80 $1.28 $3.29
$2.55 Profit per common share - diluted(1) $1.74 $1.24 $3.18 $2.47
Weighted average common shares outstanding (millions) - Basic 614.3
640.5 616.0 642.4 - Diluted(1) 635.5 662.8 637.0 664.3 Cash
dividends declared per common share $.78 $.66 $.78 $.66 (1) Diluted
by assumed exercise of stock-based compensation awards using the
treasury stock method. Caterpillar Inc. Condensed Consolidated
Statement of Financial Position (Unaudited) (Millions of dollars)
Assets June 30, December 31, Current assets: 2008 2007 Cash and
short-term investments $782 $1,122 Receivables - trade and other
9,297 8,249 Receivables - finance 8,025 7,503 Deferred and
refundable income taxes 866 816 Prepaid expenses and other current
assets 585 583 Inventories 8,303 7,204 Total current assets 27,858
25,477 Property, plant and equipment - net 10,394 9,997 Long-term
receivables - trade and other 705 685 Long-term receivables -
finance 14,795 13,462 Investments in unconsolidated affiliated
companies 641 598 Noncurrent deferred and refundable income taxes
1,523 1,553 Intangible assets 492 475 Goodwill 1,994 1,963 Other
assets 2,051 1,922 Total assets $60,453 $56,132 Liabilities Current
liabilities: Short-term borrowings: -- Machinery and Engines $130
$187 -- Financial Products 6,199 5,281 Accounts payable 5,357 4,723
Accrued expenses 3,633 3,178 Accrued wages, salaries and employee
benefits 938 1,126 Customer advances 1,814 1,442 Dividends payable
256 225 Other current liabilities 1,043 951 Long-term debt due
within one year: -- Machinery and Engines 172 180 -- Financial
Products 6,852 4,952 Total current liabilities 26,394 22,245
Long-term debt due after one year: -- Machinery and Engines 3,637
3,639 -- Financial Products 14,006 14,190 Liability for
postemployment benefits 4,836 5,059 Other liabilities 2,110 2,116
Total liabilities 50,983 47,249 Stockholders' equity Common stock
2,897 2,744 Treasury stock (10,730) (9,451) Profit employed in the
business 18,918 17,398 Accumulated other comprehensive income
(1,615) (1,808) Total stockholders' equity 9,470 8,883 Total
liabilities and stockholders' equity $60,453 $56,132 Caterpillar
Inc. Condensed Consolidated Statement of Cash Flow (Unaudited)
(Millions of dollars) Six Months Ended June 30, Cash flow from
operating activities: 2008 2007 Profit $2,028 $1,639 Adjustments
for non-cash items: Depreciation and amortization 952 849 Other 202
71 Changes in assets and liabilities: Receivables - trade and other
(1,137) 927 Inventories (1,009) (691) Accounts payable and accrued
expenses 1,023 14 Customer advances 210 352 Other assets - net (93)
(300) Other liabilities - net (271) 375 Net cash provided by (used
for) operating activities 1,905 3,236 Cash flow from investing
activities: Capital expenditures - excluding equipment leased to
others (814) (582) Expenditures for equipment leased to others
(699) (621) Proceeds from disposals of property, plant and
equipment 449 208 Additions to finance receivables (7,099) (6,356)
Collections of finance receivables 4,748 5,233 Proceeds from the
sale of finance receivables 696 84 Investments and acquisitions
(net of cash acquired) (111) (174) Proceeds from sale of
available-for-sale securities 173 119 Investments in
available-for-sale securities (230) (217) Other - net 56 285 Net
cash provided by (used for) investing activities (2,831) (2,021)
Cash flow from financing activities: Dividends paid (444) (386)
Common stock issued, including treasury shares reissued 116 223
Payment for stock repurchase derivative contracts (38) - Treasury
shares purchased (1,362) (1,017) Excess tax benefit from
stock-based compensation 53 97 Proceeds from debt issued (original
maturities greater than three months) 9,158 5,259 Payments on debt
(original maturities greater than three months) (6,530) (5,453)
Short-term borrowings (original maturities three months or
less)-net (393) 86 Net cash provided by (used for) financing
activities 560 (1,191) Effect of exchange rate changes on cash 26 8
Increase (decrease) in cash and short-term investments (340) 32
Cash and short-term investments at beginning of period 1,122 530
Cash and short-term investments at end of period $782 $562 Certain
amounts for prior periods have been reclassified to conform to the
current period financial statement presentation. All short-term
investments, which consist primarily of highly liquid investments
with original maturities of three months or less, are considered to
be cash equivalents. Caterpillar Inc. Supplemental Data for Results
of Operations For The Three Months Ended June 30, 2008 (Unaudited)
(Millions of dollars) Supplemental Consolidating Data Machinery and
Financial Consolidating Consolidated Engines(1) Products
Adjustments Sales and revenues: Sales of Machinery and Engines
$12,797 $12,797 $- $- Revenues of Financial Products 827 - 910
(83)(2) Total sales and revenues 13,624 12,797 910 (83) Operating
costs: Cost of goods sold 10,036 10,036 - - Selling, general and
administrative expenses 1,074 925 154 (5)(3) Research and
development expenses 415 415 - - Interest expense of Financial
Products 279 - 279 - (4) Other operating expenses 295 (9) 311
(7)(3) Total operating costs 12,099 11,367 744 (12) Operating
profit 1,525 1,430 166 (71) Interest expense excluding Financial
Products 70 70 - - (4) Other income (expense) 75 (18) 22 71 (5)
Consolidated profit before taxes 1,530 1,342 188 - Provision for
income taxes 434 386 48 - Profit of consolidated companies 1,096
956 140 - Equity in profit (loss) of unconsolidated affiliated
companies 10 10 - - Equity in profit of Financial Products'
subsidiaries - 140 - (140)(6) Profit $1,106 $1,106 $140 $(140) (1)
Represents Caterpillar Inc. and its subsidiaries with Financial
Products accounted for on the equity basis. (2) Elimination of
Financial Products' revenues earned from Machinery and Engines. (3)
Elimination of net expenses recorded by Machinery and Engines paid
to Financial Products. (4) Elimination of interest expense recorded
between Financial Products and Machinery and Engines. (5)
Elimination of discount recorded by Machinery and Engines on
receivables sold to Financial Products and of interest earned
between Machinery and Engines and Financial Products. (6)
Elimination of Financial Products' profit due to equity method of
accounting. Caterpillar Inc. Supplemental Data for Results of
Operations For The Three Months Ended June 30, 2007 (Unaudited)
(Millions of dollars) Supplemental Consolidating Data Machinery and
Financial Consolidating Consolidated Engines(1) Products
Adjustments Sales and revenues: Sales of Machinery and Engines
$10,613 $10,613 $- $- Revenues of Financial Products 743 - 846
(103)(2) Total sales and revenues 11,356 10,613 846 (103) Operating
costs: Cost of goods sold 8,300 8,300 - - Selling, general and
administrative expenses 968 853 120 (5)(3) Research and development
expenses 350 350 - - Interest expense of Financial Products 279 -
279 - (4) Other operating expenses 246 (10) 263 (7)(3) Total
operating costs 10,143 9,493 662 (12) Operating profit 1,213 1,120
184 (91) Interest expense excluding Financial Products 80 83 -
(3)(4) Other income (expense) 70 (36) 18 88 (5) Consolidated profit
before taxes 1,203 1,001 202 - Provision for income taxes 385 316
69 - Profit of consolidated companies 818 685 133 - Equity in
profit (loss) of unconsolidated affiliated companies 5 4 1 - Equity
in profit of Financial Products' subsidiaries - 134 - (134)(6)
Profit $823 $823 $134 $(134) (1) Represents Caterpillar Inc. and
its subsidiaries with Financial Products accounted for on the
equity basis. (2) Elimination of Financial Products' revenues
earned from Machinery and Engines. (3) Elimination of net expenses
recorded by Machinery and Engines paid to Financial Products. (4)
Elimination of interest expense recorded between Financial Products
and Machinery and Engines. (5) Elimination of discount recorded by
Machinery and Engines on receivables sold to Financial Products and
of interest earned between Machinery and Engines and Financial
Products. (6) Elimination of Financial Products' profit due to
equity method of accounting. Caterpillar Inc. Supplemental Data for
Results of Operations For The Six Months Ended June 30, 2008
(Unaudited) (Millions of dollars) Supplemental Consolidating Data
Machinery and Financial Consolidating Consolidated Engines(1)
Products Adjustments Sales and revenues: Sales of Machinery and
Engines $23,776 $23,776 $- $- Revenues of Financial Products 1,644
- 1,822 (178)(2) Total sales and revenues 25,420 23,776 1,822 (178)
Operating costs: Cost of goods sold 18,645 18,645 - - Selling,
general and administrative expenses 2,033 1,757 288 (12)(3)
Research and development expenses 784 784 - - Interest expense of
Financial Products 563 - 565 (2)(4) Other operating expenses 577
(20) 608 (11)(3) Total operating costs 22,602 21,166 1,461 (25)
Operating profit 2,818 2,610 361 (153) Interest expense excluding
Financial Products 144 144 - - (4) Other income (expense) 187 (2)
36 153 (5) Consolidated profit before taxes 2,861 2,464 397 -
Provision for income taxes 854 736 118 - Profit of consolidated
companies 2,007 1,728 279 - Equity in profit (loss) of
unconsolidated affiliated companies 21 21 - - Equity in profit of
Financial Products' subsidiaries - 279 - (279)(6) Profit $2,028
$2,028 $279 $(279) (1) Represents Caterpillar Inc. and its
subsidiaries with Financial Products accounted for on the equity
basis. (2) Elimination of Financial Products' revenues earned from
Machinery and Engines. (3) Elimination of net expenses recorded by
Machinery and Engines paid to Financial Products. (4) Elimination
of interest expense recorded between Financial Products and
Machinery and Engines. (5) Elimination of discount recorded by
Machinery and Engines on receivables sold to Financial Products and
of interest earned between Machinery and Engines and Financial
Products. (6) Elimination of Financial Products' profit due to
equity method of accounting. Caterpillar Inc. Supplemental Data for
Results of Operations For The Six Months Ended June 30, 2007
(Unaudited) (Millions of dollars) Supplemental Consolidating Data
Machinery and Financial Consolidating Consolidated Engines(1)
Products Adjustments Sales and revenues: Sales of Machinery and
Engines $19,934 $19,934 $- $- Revenues of Financial Products 1,438
- 1,645 (207)(2) Total sales and revenues 21,372 19,934 1,645 (207)
Operating costs: Cost of goods sold 15,436 15,436 - - Selling,
general and administrative expenses 1,858 1,638 230 (10)(3)
Research and development expenses 690 690 - - Interest expense of
Financial Products 550 - 551 (1)(4) Other operating expenses 485
(14) 513 (14)(3) Total operating costs 19,019 17,750 1,294 (25)
Operating profit 2,353 2,184 351 (182) Interest expense excluding
Financial Products 159 163 - (4)(4) Other income (expense) 181 (36)
39 178 (5) Consolidated profit before taxes 2,375 1,985 390 -
Provision for income taxes 760 629 131 - Profit of consolidated
companies 1,615 1,356 259 - Equity in profit (loss) of
unconsolidated affiliated companies 24 22 2 - Equity in profit of
Financial Products' subsidiaries - 261 - (261)(6) Profit $1,639
$1,639 $261 $(261) (1) Represents Caterpillar Inc. and its
subsidiaries with Financial Products accounted for on the equity
basis. (2) Elimination of Financial Products' revenues earned from
Machinery and Engines. (3) Elimination of net expenses recorded by
Machinery and Engines paid to Financial Products. (4) Elimination
of interest expense recorded between Financial Products and
Machinery and Engines. (5) Elimination of discount recorded by
Machinery and Engines on receivables sold to Financial Products and
of interest earned between Machinery and Engines and Financial
Products. (6) Elimination of Financial Products' profit due to
equity method of accounting. Caterpillar Inc. Supplemental Data for
Cash Flow For The Six Months Ended June 30, 2008 (Unaudited)
(Millions of dollars) Supplemental Consolidating Data Machinery and
Financial Consolidating Consolidated Engines(1) Products
Adjustments Cash flow from operating activities: Profit $2,028
$2,028 $279 $(279)(2) Adjustments for non- cash items: Depreciation
and amortization 952 573 379 - Undistributed profit of Financial
Products - (279) - 279 (3) Other 202 192 (146) 156 (4) Changes in
assets and liabilities: Receivables - trade and other (1,137) (657)
(20) (460)(4/5) Inventories (1,009) (1,009) - - Accounts payable
and accrued expenses 1,023 748 159 116 (4) Customer advances 210
210 - - Other assets - net (93) (48) (19) (26)(4) Other liabilities
- net (271) (278) (4) 11 (4) Net cash provided by (used for)
operating activities 1,905 1,480 628 (203) Cash flow from investing
activities: Capital expenditures - excluding equipment leased to
others (814) (804) (10) - Expenditures for equipment leased to
others (699) - (710) 11 (4) Proceeds from disposals of property,
plant and equipment 449 18 431 - Additions to finance receivables
(7,099) - (19,164) 12,065 (5) Collections of finance receivables
4,748 - 15,846 (11,098)(5) Proceeds from sale of finance
receivables 696 - 1,471 (775)(5) Net intercompany borrowings - 220
(433) 213 (6) Investments and acquisitions (net of cash acquired)
(111) (111) - - Proceeds from sale of available-for-sale securities
173 12 161 - Investments in available- for-sale securities (230)
(11) (219) - Other - net 56 116 (60) - Net cash provided by (used
for) investing activities (2,831) (560) (2,687) 416 Cash flow from
financing activities: Dividends paid (444) (444) - - Common stock
issued, including treasury shares reissued 116 116 - - Payment for
stock repurchase derivative contracts (38) (38) - - Treasury shares
purchased (1,362) (1,362) - - Excess tax benefit from stock-based
compensation 53 53 - - Net intercompany borrowings - 433 (220)
(213)(6) Proceeds from debt issued (original maturities greater
than three months) 9,158 110 9,048 - Payments on debt (original
maturities greater than three months) (6,530) (133) (6,397) -
Short-term borrowings (original maturities three months or less)
-net (393) (62) (331) - Net cash provided by (used for) financing
activities 560 (1,327) 2,100 (213) Effect of exchange rate changes
on cash 26 23 3 - Increase (decrease) in cash and short-term
investments (340) (384) 44 - Cash and short-term investments at
beginning of period 1,122 862 260 - Cash and short-term investments
at end of period $782 $478 $304 $- (1) Represents Caterpillar Inc.
and its subsidiaries with Financial Products accounted for on the
equity basis. (2) Elimination of Financial Products' profit after
tax due to equity method of accounting. (3) Non-cash adjustment for
the undistributed earnings from Financial Products. (4) Elimination
of non-cash adjustments and changes in assets and liabilities
related to consolidated reporting. (5) Reclassification of Cat
Financial's cash flow activity from investing to operating for
receivables that arose from the sale of inventory. (6) Net proceeds
and payments to/from Machinery and Engines and Financial Products.
Caterpillar Inc. Supplemental Data for Cash Flow For The Six Months
Ended June 30, 2007 (Unaudited) (Millions of dollars) Supplemental
Consolidating Data Machinery and Financial Consolidating
Consolidated Engines(1) Products Adjustments Cash flow from
operating activities: Profit $1,639 $1,639 $261 $(261)(2)
Adjustments for non- cash items: Depreciation and amortization 849
512 337 - Undistributed profit of Financial Products - (261) - 261
(3) Other 71 47 (146) 170 (4) Changes in assets and liabilities:
Receivables - trade and other 927 (117) (20) 1,064 (4/5)
Inventories (691) (691) - - Accounts payable and accrued expenses
14 (86) 36 64 (4) Customer advances 352 352 - - Other assets - net
(300) (255) 2 (47)(4) Other liabilities - net 375 337 8 30 (4) Net
cash provided by (used for) operating activities 3,236 1,477 478
1,281 Cash flow from investing activities: Capital expenditures -
excluding equipment leased to others (582) (575) (7) - Expenditures
for equipment leased to others (621) - (627) 6 (4) Proceeds from
disposals of property, plant and equipment 208 13 196 (1)(4)
Additions to finance receivables (6,356) - (17,369) 11,013 (5)
Collections of finance receivables 5,233 - 16,846 (11,613)(5)
Proceeds from the sale of finance receivables 84 - 777 (693)(5) Net
intercompany borrowings - 35 (29) (6)(6) Investments and
acquisitions (net of cash acquired) (174) (181) - 7 (7) Proceeds
from sale of available-for-sale securities 119 7 112 - Investments
in available- for-sale securities (217) (8) (209) - Other - net 285
81 206 (2)(7) Net cash provided by (used for) investing activities
(2,021) (628) (104) (1,289) Cash flow from financing activities:
Dividends paid (386) (386) - - Common stock issued, including
treasury shares reissued 223 223 (2) 2 (7) Treasury shares
purchased (1,017) (1,017) - - Excess tax benefit from stock-based
compensation 97 97 - - Net intercompany borrowings - 29 (35) 6 (6)
Proceeds from debt issued (original maturities greater than three
months) 5,259 43 5,216 - Payments on debt (original maturities
greater than three months) (5,453) (49) (5,404) - Short-term
borrowings (original maturities three months or less)-net 86 267
(181) - Net cash provided by (used for) financing activities
(1,191) (793) (406) 8 Effect of exchange rate changes on cash 8 4 4
- Increase (decrease) in cash and short-term investments 32 60 (28)
- Cash and short-term investments at beginning of period 530 319
211 - Cash and short-term investments at end of period $562 $379
$183 $- Certain amounts for prior periods have been reclassified to
conform to the current period financial statement presentation. (1)
Represents Caterpillar Inc. and its subsidiaries with Financial
Products accounted for on the equity basis. (2) Elimination of
Financial Products' profit after tax due to equity method of
accounting. (3) Non-cash adjustments for the undistributed earnings
from Financial Products. (4) Elimination of non-cash adjustments
and changes in assets and liabilities related to consolidated
reporting. (5) Reclassification of Cat Financial's cash flow
activity from investing to operating for receivables that arose
from the sale of inventory. (6) Net proceeds and payments to/from
Machinery and Engines and Financial Products. (7) Change in
investment and common stock related to Financial Products.
DATASOURCE: Caterpillar Inc. Web site: http://www.cat.com/
Copyright