Caterpillar 2010 Annual Report Download - page 26

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26
PERFORMANCE
In addition to its solid financial performance, Caterpillar
accomplished much – ramping up production substantially,
improving factory efficiency and driving Machinery and
Engines operating cash flow to an all-time record. Long-term
investment continued to be a priority with significant funding
directed toward product development, additional capacity
and strategic acquisitions.
Capital expenditures totaled $1.575 billion. Caterpillar also
continued to invest in technologies that will enable its customers
to operate Machinery and Engines with higher efficiency and
cleaner energy. Investment in research & development reached
a record level of $1.9 billion. About 620 patents were awarded
to more than 750 inventors within the Caterpillar enterprise.
The Company’s strong operational and financial performance
also benefitted its stockholders. Caterpillar’s stock performance
was the best among the companies comprising the Dow Jones
Industrial Average in 2010. Profit per share of $4.15 in 2010 was
up from $1.43 in 2009. For the seventeenth consecutive year,
Caterpillar paid higher dividends to stockholders. Caterpillar’s
performance in 2010 underscored its commitment to pursue
compelling growth opportunities, maintain operational and cost
discipline and make strategic long-term investments – all with
a goal of delivering superior returns through the business cycle.
DIVIDENDS DECLARED PER SHARE
2006 2007 2008 2009 2010
0.5
1.0
1.5
2.0
$1.15
$1.62 $1.68 $1.74
$1.38
OPERATING PROFIT
2006 2007 2008 2009 2010
$1,000
$3,000
$2,000
$4,000
$5,000 $4,921 $4,921 $4,448
$577
$3,963
(dollars in millions)
CAPITAL EXPENDITURES
$500
$1,000
$1,500
$2,000
$2,500
2008 2009 2010
$1,504 $1,575
$2,320
(excludes equipment leased to others)
(dollars in millions)
RESEARCH & DEVELOPMENT
2006 2007 2008 2009 2010
$500
$1,000
$1,500
$2,000
$1,347
$1,728
$1,421
$1,905
$1,404
(dollars in millions)
PROFIT PER SHARE (diluted)
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2008 2009 2010
$1.43
$4.15
$5.66
26
2010 YEAR IN REVIEW