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Caterpillar invades China

Posted Aug 28 2008, 03:08 PM by Minyanville
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Caterpillar says surging demand for construction and mining equipment in China and other emerging nations will drive record sales this year.

The company expects sales to China to exceed $2 billion and global sales to top $50 billion, offsetting sluggish sales in the United States.

In the second quarter of 2008, Caterpillar reported all-time records for Revenue and earnings per share. The company earned $1.74 a share, up from $1.24 earned in the same period a year ago. Revenue totaled $13.6 billion, up from $11.4 billion reported in the second quarter of 2007.

"While North America remains depressed and we've seen softening in Western Europe and Japan, Caterpillar continues to grow in emerging markets and in global industries like energy and mining,” Jim Owens, Caterpillar chairman and CEO, said in a prepared statement.

In addition to China, sales have been strong in India, Russia, Southeast Asia and the Middle East. In Asia, orders for mining and power generating equipment extend to 2010.

Caterpillar is negotiating with the Chinese government to develop at 250-acre facility in Kumming to test equipment and train customers in its use.

Komatsu of Japan is second only to Caterpillar in the manufacture of heavy equipment. Caterpillar also competes with CNH Global, a Dutch company, and Volvo.

US exports have been helped by a weaker dollar and have been rising at the fastest rate in years. Exports have helped the US avoid slipping into recession. Voters therefore might want to be wary of politicians who say free trade costs jobs and vow to renegotiate trade agreements, including NAFTA.

American export growth is spread around the world, with some of the sharpest gains coming in Latin America. Exports to Brazil increased 43% in the second quarter ended in June while exports to Argentina jumped 65% and exports to Colombia were up 42%.

China is the largest customer for U.S. exports after Canada and Mexico.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Contributor Scott Reeves.

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Comments

 

And once again the United States is losing jobs and Caterpillar is making billions. When are we going to wake up and take care of our own.

not just caterpillar gaining while america loses big time, but for years what started in the usa is slowly leaving.  avon products, their products they sell to us, imports.  etc.   i feel that if a company leaves the usa, the owners and operators ought to leave with them.  no more free rides at our the american people expense.  

Katie and Janet:  invest in Cat!  If it had to rely on U.S. markets alone then the company would be SHEDDING jobs not creating them.  Didn't you read the article?  Man, it's time for you both to get an Econ 101 course.

Peejay is right on the mark. Cat is expanding in the USA and hiring here.  They lost a parts factory earlier this year in the south and chose to rebuild here, where the skilled workfoce was. Janet and Kate need to find out who the CEO, Jim Owens really is, along with the rest of the team at CAT. Yes, I do own stock in CAT. It has been the only positive move I've made this year!

James

Katie and Janet : American Idiots , A US company selling to china what a concept! Another US company making record profits lets tax them to death and send a check to the deadbeat americans that dont work. Once all these american idiots vote for Barak HUSSEIN Obama, CAT may just move all the manufacturing jobs to China also.

I sell to caterpillar and our sales haved increased by 20% per year for the last 4 years.  We hire American worker to make their parts.  Katie and Janet are ignorent and need a lesson in economics. My best guess is they beleive the Democrats and have not seen the real world. The amout of Jobs created directly and indirectly from free trade are 10 times gresater that what is lost.

Katie, what is really our own? did you clinton started this globalization problem? Nafta...etc, lets see what else obama brings to take more jobs away from US soil

I work for a plant in the US that makes and sells parts to Caterpillar-We are the only place in the area where I live that has been constantly busy and always looking to hire new employees.Caterpillar has kept us going strong even through these last few months of economical downturning-But there is always the worry of economic choices that face Cat.--With the global market going south what if they do decide to go more major in a foreighn soventry like China????

Labor and steel Im sure are readily available and probably maybe even more advantageous ---We need to focus more on the Oil and energy problems in this nation-Oil companies posting record profits and thumbing their noses at US the American people ---If anyone drives us to the brink it will be the profit hungry Oil misers of this nation and the corrupt political banking systems who florish on the interest they charge and then SAY HEY WE ARE BANKRUPT  because the loans we made charging those interest rates arent being paid now because we slammmed it in to  deep........

YOU SAID YOU WORKED FOR "CAT".  I BET TODAY ON FEBRUARY 25TH 2009 YOU ARE PLAYING A DIFFERENT DRUM.  CATEPRILLAR IS AFFECTING THE LIVELIHOOD OF MILLIONS OF PEOPLE ON FEBRUAYR 26TH 2009.

YOU SAY INFRASTRUCTURE, I SAY WHEN.........................

aterpillar in side and in French catathome.blogspot.com

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