As many of you know 2013 has been a very difficult year for industry giant Caterpillar, Inc. They have suffered serious losses during the 3rd Quarter and although they have recovered significantly in the 4th Quarter it was insufficient to make up for the loses incurred during the beginning of the year. Overall, Caterpillar suffered a loss of about $10 billion in Sales and Revenue from its 2012 numbers. In terms of net income, during 2012 net income was $5.68 billion and because of the 3rd quarter losses during 2013 net income dropped to $3.8 billion (a loss of about 33%).
Experts say that this drastic drop in their sales during the 2nd half of the year was due to the decrease in the demand for mining equipment world wide. After Caterpillar’s major investment in acquiring the mining company “Bucyrus International Inc.” which produces large bucket sized shovels that are used in the mining of ores. The $8.8 billion dollar acquisition cost for Bucyrus did not help the situation and with its primary produce being for mining operations the deal was certainly mistimed.
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