Despite some of the weakest markets in a decade, geopolitical uncertainty and a sluggish global economic recovery, Caterpillar delivered solid financial results in 2002, the company announced.

In its 2002 annual report, issued this week, the company credits a strong diversification strategy, a tremendous effort from employees and breakthroughs in cost reduction, quality and process improvement for the company's success.
"Simply put, Caterpillar is not the same company we were 10 years ago," said Chairman Glen Barton. "We've made some hard choices to diversify our business so we're not only the 'tractor company' we used to be known as."
For the full year in 2002, Caterpillar achieved sales and revenues of $20.15 billion compared to $20.45 billion in 2001. This decline of about 1% was due to lower sales volume, partially offset by improved price realization.
Profit for the full year was $798 million or $2.30 per share, compared to $805 million or $2.32 per share, down less than 1% from 2001. Excluding the $97 million after-tax impact of unusual charges recorded in the fourth quarter of 2001, profit declined 12% due to lower sales volume and related manufacturing inefficiencies.
Detailed in the annual report, Caterpillar's accomplishments in 2002 include investing $4 million each working day in technology, including the ACERT technology. ACERT is designed to meet -- and beat -- new EPA engine emissions standards while providing a clean diesel solution without sacrificing reliability, durability or fuel economy.
Based on the global industry outlook for 2003, Caterpillar expects both industry and company sales to be about the same as 2002. Despite flat sales and revenues -- as well as increased employee benefit costs to the company -- profit for the year is expected to be down only about 5% compared to 2002.
"We are well-positioned to participate in and benefit from economic growth," said Barton.