Caterpillar Inc., Peoria, Ill., has reported sales and revenues of $5.08 billion and profit of $213 million or 61 cents per share for the third quarter 2002.
Through the third quarter of the year, sales and revenues were $14.78 billion and profit was $493 million or $1.42 per share.
Sales and revenues for the quarter were $19 million above third quarter 2001, primarily due to a 2% increase in Financial Products revenues.
Profit for the third quarter was $8 million higher than last year, primarily due to lower income taxes. Profit before tax was down $12 million, as the favorable impact of improved price realization was more than offset by lower volume, particularly in large reciprocating engines and coal mining equipment.
"We have been putting into place the building blocks that will allow us to remain profitable at the bottom of the business cycle. And it is working," said Glen Barton, chairman and CEO.
"There is no doubt we are in an extended downturn and uncertainty about a recovery continues, yet we are delivering a solid profit. Intense focus has resulted in significantly improved machinery and engines cash flow, especially through lower capital expenditures. We have also benefited from cost reduction, including lower employment levels while continuing to invest in new technologies," Barton said.
Machinery and engine sales overall were about the same as last year. Sales were significantly higher in Asia/Pacific in the third quarter, with very strong growth in China. Sales in Europe, Africa and the Middle East were also higher, mainly due to a sharp increase in sales of large engines. These increases offset declines in North America and Latin America. Sharply higher truck and bus engine sales, as well as higher sales in the heavy construction and quarry and aggregates industries offset declines in electric power generation, coal mining and general construction.
"Our outlook for the year remains unchanged. However, near-term political and economic uncertainty could impact our fourth-quarter results," continued Barton. "We are performing substantially better than we did during the early nineties. Our strategies are serving us well."
Caterpillar continues to focus on its ongoing strategy for cost reduction and improved cash flow, while investing in critical projects for future growth. For example, the company continues to invest in ACERT technology, which will allow Caterpillar to meet current emission standards while providing a line of sight to achieving future standards for both on-highway and off-highway applications.
The company still expects sales and revenues for the year to be down slightly with full-year profit down about 15% from last year, excluding nonrecurring charges recorded in 2001. However, uncertain near-term political and economic conditions make the remainder of the year more difficult than normal to predict. Full-year projections include the impact of a sharp drop in on-highway truck engine sales in the fourth quarter of 2002 following artificially strong third quarter truck engine demand caused by truck fleets pre-buying ahead of the October emissions deadline. North American heavy-duty truck manufacturers have experienced a sharp drop in incoming orders that will impact demand for Caterpillar engines in the fourth quarter.
Through the third quarter of the year, sales and revenues were $14.78 billion and profit was $493 million or $1.42 per share.
Sales and revenues for the quarter were $19 million above third quarter 2001, primarily due to a 2% increase in Financial Products revenues.
Profit for the third quarter was $8 million higher than last year, primarily due to lower income taxes. Profit before tax was down $12 million, as the favorable impact of improved price realization was more than offset by lower volume, particularly in large reciprocating engines and coal mining equipment.
"We have been putting into place the building blocks that will allow us to remain profitable at the bottom of the business cycle. And it is working," said Glen Barton, chairman and CEO.
"There is no doubt we are in an extended downturn and uncertainty about a recovery continues, yet we are delivering a solid profit. Intense focus has resulted in significantly improved machinery and engines cash flow, especially through lower capital expenditures. We have also benefited from cost reduction, including lower employment levels while continuing to invest in new technologies," Barton said.
Machinery and engine sales overall were about the same as last year. Sales were significantly higher in Asia/Pacific in the third quarter, with very strong growth in China. Sales in Europe, Africa and the Middle East were also higher, mainly due to a sharp increase in sales of large engines. These increases offset declines in North America and Latin America. Sharply higher truck and bus engine sales, as well as higher sales in the heavy construction and quarry and aggregates industries offset declines in electric power generation, coal mining and general construction.
"Our outlook for the year remains unchanged. However, near-term political and economic uncertainty could impact our fourth-quarter results," continued Barton. "We are performing substantially better than we did during the early nineties. Our strategies are serving us well."
Caterpillar continues to focus on its ongoing strategy for cost reduction and improved cash flow, while investing in critical projects for future growth. For example, the company continues to invest in ACERT technology, which will allow Caterpillar to meet current emission standards while providing a line of sight to achieving future standards for both on-highway and off-highway applications.
The company still expects sales and revenues for the year to be down slightly with full-year profit down about 15% from last year, excluding nonrecurring charges recorded in 2001. However, uncertain near-term political and economic conditions make the remainder of the year more difficult than normal to predict. Full-year projections include the impact of a sharp drop in on-highway truck engine sales in the fourth quarter of 2002 following artificially strong third quarter truck engine demand caused by truck fleets pre-buying ahead of the October emissions deadline. North American heavy-duty truck manufacturers have experienced a sharp drop in incoming orders that will impact demand for Caterpillar engines in the fourth quarter.
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