Recovery in developing markets for construction equipment after two years of suppressed demand saw Caterpillar profits rise 83% in 2011 and sales grow 41% to reach an all-time high.

Cat’s 2011 sales were $60.1bn (2010: $42.6bn). Profit was $4.9bn (2010: $2.7bn).

Construction machinery sales rose 45% to $19.7bn.

Growth was based in part on the acquisitions of mining equipment producer Bucyrus and Motoren-Werke Mannheim Holding GmbH (MWM).

Sales in 2012 are expected to grow a further 15% to be in the range of $68bn to $72bn, even though demand in Europe and the USA remains depressed.

“Our strategy is squarely focused on customers, and in 2011 our employees, suppliers and dealers delivered. We improved product quality, invested significantly in manufacturing capacity and product development, and improved our market position,” said Caterpillar chairman and CEO Doug Oberhelman.

“The 2011 increase in sales and revenues was the largest percentage increase in any year since 1947, and much of it was driven by demand for Caterpillar products and services outside of the United States. As a result, 2011 was a record-breaking year for U.S. exports at nearly $20 billion, which supported thousands of jobs in the United States, demonstrating the tangible benefits of free trade. Sales and export growth creates jobs, both in the United States and around the world. Not including acquisitions, our global workforce grew by more than 14,000 in 2011, and since the start of 2010, we have increased our workforce by more than 33,000, with more than 14,000 of those jobs in the United States,” Mr Oberhelman added.

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