With the expected completion of the current $7.5 billion stock repurchase program, Caterpillar board of directors has approved a new $10 billion stock repurchase program, which will expire on December 31, 2018. Caterpillar Vertical-Lift 259B Series 3 has a 71-hp Cat C3.4T DIT engine Undercarriage uses triple-flange cast-iron rollers equipped with Duo-Cone seals.
Courtesy of Caterpillar

Caterpillar fourth-quarter 2013 and full-year 2013 numbers were down versus the prior year. The company has announced its intention to repurchase additional stock. For the fourth quarter profit bounced back from 2012. The company also announced its intention to repurchase additional stock.

Fourth-quarter 2013 sales and revenues were $14.402 billion, down 10 percent from $16.075 billion in the fourth quarter of 2012. Profit per share in the fourth quarter of 2013 was $1.54, compared with profit per share of $1.04 in the fourth quarter of 2012.

Fourth-quarter 2012 included two large items"?uprofit was negatively impacted by a goodwill impairment charge of $580 million, or $0.87 per share, but was positively impacted by a $300 million tax settlement, or $0.45 per share. Excluding these two items, profit per share increased $0.08 from the fourth quarter of 2012, reflecting solid operational performance.

"In such a challenging environment, I am proud of the way our employees came together in 2013," said chairman and CEO Doug Oberhelman. "Despite a sales and revenues decline of about $10 billion, we set a record for operating cash flow, strengthened our balance sheet and improved our overall market position for machines. We continued to improve safety in our facilities and the quality of the products we ship each day."

Caterpillar also announced its intention to repurchase approximately $1.7 billion of Caterpillar common stock during the first quarter of 2014. This repurchase is expected to complete the existing $7.5 billion repurchase authorization that was set to expire on December 31, 2015, which was originally approved by the Board of Directors in 2007. This repurchase is in addition to $2 billion that was repurchased in 2013.

"The completion of our previous program and the decision to announce a new $10 billion program are a result of our record cash flow, the strength of our balance sheet and our confidence in the long-term future of Caterpillar," Oberhelman said.

For more information visit www.caterpillar.com.