Caterpillar (CAT): Profit jumped 44% to $1B.
The fall in mining sales in 2013 "turned out to be worse than we anticipated," Caterpillar says. As a result, it reduced expenses, and total operating costs dropped 14% to $12.95B in Q4.
China sales +20% in 2013 to $3.5B.
Machinery & Power Systems (M&PS) enjoyed record operating cash flow of $9B in 2013, helped by $2.9 billion of inventory reduction.
Dealers slashed their inventories by over $3B.
While these reductions were a headwind last year, Caterpillar believes that "the significant impact" on its sales is "largely over."
Caterpillar "sees some signs of improvement in the global economy," which should be positive for sales in the company's construction and power systems businesses. However, it expects mining companies to continue reducing capex and for sales in its resource industries ops to decline modestly.
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