THE DUO DELIVERS: Both UPS And Caterpillar Earnings Blow Away Expectations


Caterpillar reported profit of $1.09 for its second quarter vs. $0.85 expected. UPS reported $0.84 vs. $0.77 expected.

See the 12 stocks that will move on UPS & Caterpillar >

Caterpillar Inc. (NYSE: CAT) today reported a second-quarter profit of $1.09 per share, an increase of $0.49 per share from a profit of $0.60 per share in the second quarter of 2009. Profit of $707 million was 91 per cent higher than second-quarter 2009 profit of $371 million. Sales and revenues of $10.409 billion were up 31 per cent from $7.975 billion in the second quarter of 2009.

“You can see the results in our second quarter—sales and revenues increased substantially, operating profit as a per cent of sales more than doubled, and Machinery and Engines operating cash flow and our debt-to-capital ratio strengthened. Our employees, dealers and suppliers are doing a great job ramping up to support customers. The increase in our sales from first to second quarter 2010 was one of the most significant quarter-to-quarter increases in our history,” Oberhelman added.

Now, UPS:

UPS (NYSE:UPS) today announced diluted earnings per share of $0.84 for the second quarter of 2010, a 71% jump over the adjusted earnings of the prior-year period. Global revenue increased 13%, generating a 57% increase in operating profit to $1.4 billion.

On a reported basis, diluted earnings per share increased 91% over the $0.44 in the second quarter of 2009.

“UPS fired on all cylinders in the second quarter even in the face of a mixed global economic environment,” said Scott Davis, UPS’s chairman and CEO. “Thanks to superb execution, our U.S. domestic reorganization is producing better than expected results. Substantial growth in our international segment continues to outpace the market. It’s clear the strategic direction we’ve set for the company is proving successful.”

Based on expectations of continued momentum in every segment, UPS has increased its guidance for 2010 adjusted earnings to a range of $3.35 to $3.45 per diluted share, a 45%-to-50% increase over last year.


Growth in US domestic:


Growth in International and freight:



And now back to CAT’s data tables:


Most of the revenue gains were due to volume, not pricing:


Much faster growth in Latin America and Asia, but still a healthy rebound in North America:


Operating profit increased much more than revenue — thank you, operating leverage:


Final Cat Inc Release

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