The decline is largely attributed to a drop in sales in the mining industry. Cat CFO Brad Halverson says the company weathered the difficult year very well, maintaining their commitment to customers, shareholders and employees. “We came out of it with an incredibly strong balance sheet. We came out of it meeting kind of our profit commitments and our employees delivered. They did an outstanding job in all three of those areas. And I would that a little bit unbalanced in terms of the three sides of the triangle.”
Halverson says employees and their families made great sacrifices with rolling layoffs and receiving less in target incentive pay. Cat doesn’t expect much improvement in mining equipment sales this year. The company also plans to continue restructuring efforts this year. It announced the closure of several small facilities and the downsizing of others in 2013.
Cat earned $1 dollars in the fourth quarter. That’s compared with $697 million a year earlier. Sales and revenues for the quarter declined 10% landing at more than $14 billion.