Caterpillar Q1 earnings release, growth slowed
Sales growth
The company's first quarter sales and revenue increased by 14% to $13.6 billion, compared with $11.9 billion in the same period last year; The operating profit margin was 13.7%, compared with 15.3% in the first quarter of 2021; Adjusted earnings per share was $2.88, higher than analysts' forecast of $2.6, and earnings per share for the same period in 2021 was $2.87.
At the end of the first quarter, the company had corporate cash of $6.5 billion. Caterpillar paid about $1.3 billion in short-term incentive compensation in the first quarter. In addition, caterpillar bought back $800 million of common stock and paid a dividend of $600 million.
Cost growth
Caterpillar responded to rising costs this quarter. Costs and expenses totaled $11.73 billion, up 13% from a year ago. The company said higher manufacturing costs mainly reflected more expensive materials and freight costs. The operating profit margin in the first quarter of 2022 was 13.7%, compared with 15.3% in the first quarter of 2021.
KOMATSU
Launch a new medium-term business plan
Komatsu launches a new medium-term business plan
Renewal of mission vision: create value through manufacturing and technological innovation to achieve a sustainable future of common prosperity for mankind, enterprises and the earth "
President and CEO of Komatsu: Hiroyuki Ogawa launched a new three-year medium-term business plan "dantotsu value – together, to 'the next' for sustainable growth" in April 2022 to ensure sustainable growth in the next 100 years. We will strive to create new value to steadily move towards the next stage of the future workplace and pass on a sustainable future to the next generation.
On the occasion of our 100th anniversary, we define our goal (mission and vision) as "creating value through manufacturing and technological innovation to achieve a sustainable future of common prosperity for mankind, enterprises and the earth". In addition to our values, we have also stipulated the brand commitment of "jointly creating value" and our commitment to customers and all other stakeholders. As the basic method to realize all these above, we turn to our management principle of "commitment to quality and reliability, and maximize the trust of stakeholders and society in us." We position the medium-term management plan as a strategy to achieve objectives and management principles.
Key business
Before formulating the new medium-term business plan, we extracted priority areas of important social issues (importance) for us and stakeholders. Therefore, we regard the four areas where our importance overlaps with the importance of stakeholders as the most important areas, namely, environment, customers, employees, and ethics and governance. In order to generate a positive cycle of improving revenue and ESG resolutions, we reflect our efforts in these four areas into our growth strategy.
In terms of construction and mining equipment business, we will focus on investment growth areas, expand solutions and value chain business, and consider mergers and acquisitions to further improve growth potential and profitability.
Growth strategy support
In the new medium-term business plan, we continue to emphasize the sustainable development management previously planned, that is, we achieve sustainable growth by improving the positive cycle of revenue and ESG solutions, and identify three new growth strategic pillars, including (1) accelerating growth through innovation, (2) maximizing profitability, and (3) enhancing enterprise resilience. By continuing to focus on investment to create value in growth areas and maximize profitability opportunities in existing areas, we will strive to further improve profitability and establish an operational structure that can adapt to changes in demand. In addition, with regard to the operational basis to support these efforts, we will improve the ability of enterprises to improve operational efficiency and respond to changes in the external environment.
Komatsu's new medium-term business plan
