Analyze Caterpillar Caterpillar Inc. (CAT) is the world's leading manufacturer of construction and mining equipment. Three recent years of earnings and average common shares outstanding data for Caterpillar are as follows (in millions): Net income $ $ Year 3 Year 2 $6,093 561.6 Year 2 $6,147 591.4 Average number of common shares outstanding a. Determine the earnings per share for Years 1-3. Caterpillar had no preferred stock outstanding. Round your answers to two decimal places. Year 3 Year 1 Year 1 $754 591.8 Earnings per share b. Interpret the trend in earnings per share using horizontal analysis for the three years in terms of the change in earnings and average shares outstanding. In Year 2 and Year 3 increase was the result of large growth in income, due to increased sales and lower restructuring costs. In Year 2 and Year 3 decrease was the result of small growth in income, due to decreased sales and higher restructuring costs.

Coterpiltar lnc. (CAT) is the world's leading manufacturer of construction and mining equipment. Three recent years of earnings and average cornmon shares outstanding data for Caterpiliar are as follows (in mallions)