Caterpillar Inc. (CAT): Can You Count On It Any Longer?

The soft coal market in the U.S was also reflected in the company’s drop in original-equipment sales during the first quarter of 2013. Joy’s net sales rose during the quarter by 1.2% mainly due to the sharp rise in the surface-mining equipment segment, which grew by almost 14% year-over-year (y-o-y). Once again, if the coal market rebounds in the U.S., this could augment Joy’s revenue in the coming months.

The farmer’s market

Shares of Deere & Company (NYSE:DE) rallied in the past month by nearly 5%. Most of the growth may have stemmed from the company’s decision to augment its dividend payment by almost 11% so that its current annual yield is at 2.2%. The company’s recent quarterly results were positive as revenue grew by almost 10% (y-o-y) and Deere & Company (NYSE:DE)’s operating profits rose from 11.8% in Q1 2012 to 12.7% in Q1 2013.

The company expects its agriculture and turf operations are likely to rise in 2013 by 6% (y-o-y). Most of the growth in sales is projected to come from South America. Construction and forestry sales are expected to rise by only 3% in 2013.

Bottom line

All three companies I have listed above have some similarities and rely on the future progress of leading economies along with the future developments of leading commodities prices. These companies are likely to rely on South America as the main source of growth. Of the three companies, my guess is that Deere & Company (NYSE:DE) will be able to meet expectations and continue to grow its business operations. Caterpillar Inc. (NYSE:CAT) and Joy might find it harder to produce revenue growth in 2013.

The article Will Caterpillar Recover in 2013? originally appeared on Fool.com.

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