19.10.2007

New record for Cat

Caterpillar has reported a 7.5 percent increase in consolidated revenues for the nine months to the end of September to reach a record $32.8 billion.

At the same time pre-tax profits for the nine months declined by around one and a half percent, although for the quarter they improved by 20 percent over the same quarter last year.

Sales in North America fell 12 percent for the quarter, driven by both lower machine and truck engine sales. Overseas sales more than compensated though, with Europe being the fastest growing region for the company with sales climbing by 43 percent.
.
Caterpillar chairman and chief executive officer Jim Owens said: “These results clearly demonstrate our global reach and the stability and strength of our growing integrated service businesses. We delivered strong returns for our stockholders despite continuing severe weakness in key U.S. markets. I am particularly pleased by the bottom line results of our engines business.

“Despite weakness in U.S. markets, our sales and revenues increased nine percent. We continue to see remarkable growth outside of the United States with particular strength in key industries like mining, oil and gas, electric power and marine engines. The industries we serve are becoming increasingly global, and the investments we are making to achieve our 2010 goals have us well positioned to meet their needs,” said Owens.

Outlook

Caterpillar is maintaining its full-year revenue forecasts for 2007 at around $44 billion but is expecting profits to come in slightly lower than it had planned.

Caterpillar’s preliminary outlook for 2008 anticipates a sales and revenues increase of five to 10 percent with profits per share rising by five to 15 percent

“I am pleased with our progress on improving safety and quality. While we continue to face capacity-related inefficiencies due to the unprecedented surge in global demand, I am confident that CPS with 6 Sigma will deliver the velocity and efficiency improvements needed to achieve our 2010 revenue goal of more than $50 billion and compound annual growth in profit per share of 15 to 20 percent from our 2005 base,” said Owens.