A 426 Percent Increase?
- Published: Tuesday, 03 May 2011 14:51
May 3, 2011 – You'd probably feel pretty good about your business right now if you just had a 426 percent increase, right? Well, Caterpillar exceeded all expectations with first-quarter 2011 profit of $1.225 billion compared with a profit of $233 million in the first quarter of 2010. That is an improvement of 426 percent. While higher sales volume played a role, $90 million of the improvement was due to the absence of a tax charge from the first quarter of 2010 related to enactment of U.S. health care legislation. Cat executives noted that demand continued to improve, they increased production, cost control was excellent and operating profit margin improved. Copy that formula!