Caterpillar posted a first quarter profit of $162 million on revenues of $4.81 billion, compared to $258 million profit on revenues of $4.91 for first quarter
2000.
Engine sales were $1.5 billion, down 10% from a year ago. Caterpillar said a sharp drop in sales to North American truck manufacturers was partially offset by strong sales of power generation products, particularly in North American, and steadily increasing sales to the petroleum industry.
"Our diversity continues to serve us well in these times of global economic challenge," said Chairman Glen Barton. He also noted that while a number of business sectors, including truck engines, remain weak, they are seeing an upturn in coal mining, heavy construction and oil and gas.
The company said it expects full year sales and revenues to be about the same as 2000. Profit will be down 5-10%. Both, noted Barton, are unchanged from January projections, despite slightly lower expectations for worldwide economic growth.
Caterpillar forecasts world GDP growth at about 2.5% this year, down from 4% in 2000. Industrial production is projected to decelerate from about 8% in 2000 to 3.5% in 2001, driven mainly by a slowdown in the major industrial countries, including the U.S. and Japan.
Caterpillar predicts U.S. GDP growth will slow from 5% in 2000 to 2-2.5% this year. The manufacturing sector will see significantly lower production levels in the first half of 2001, while housing and construction will experience more moderate declines.
Caterpillar said it expects economic growth and capital spending to pick up in the third and fourth quarters, assuming interest rate reductions and federal tax cuts.
The company expects engine sales to be flat this year. Higher sales to the petroleum and electric power sectors should offset further declines in truck engine demand. North American demand for construction equipment will slide about 10% this year. Lower sales to general construction will be partially offset by
higher sales to the heavy construction, coal and petroleum sectors.
2000.
Engine sales were $1.5 billion, down 10% from a year ago. Caterpillar said a sharp drop in sales to North American truck manufacturers was partially offset by strong sales of power generation products, particularly in North American, and steadily increasing sales to the petroleum industry.
"Our diversity continues to serve us well in these times of global economic challenge," said Chairman Glen Barton. He also noted that while a number of business sectors, including truck engines, remain weak, they are seeing an upturn in coal mining, heavy construction and oil and gas.
The company said it expects full year sales and revenues to be about the same as 2000. Profit will be down 5-10%. Both, noted Barton, are unchanged from January projections, despite slightly lower expectations for worldwide economic growth.
Caterpillar forecasts world GDP growth at about 2.5% this year, down from 4% in 2000. Industrial production is projected to decelerate from about 8% in 2000 to 3.5% in 2001, driven mainly by a slowdown in the major industrial countries, including the U.S. and Japan.
Caterpillar predicts U.S. GDP growth will slow from 5% in 2000 to 2-2.5% this year. The manufacturing sector will see significantly lower production levels in the first half of 2001, while housing and construction will experience more moderate declines.
Caterpillar said it expects economic growth and capital spending to pick up in the third and fourth quarters, assuming interest rate reductions and federal tax cuts.
The company expects engine sales to be flat this year. Higher sales to the petroleum and electric power sectors should offset further declines in truck engine demand. North American demand for construction equipment will slide about 10% this year. Lower sales to general construction will be partially offset by
higher sales to the heavy construction, coal and petroleum sectors.
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