Caterpillar reported third quarter profits of $205 million on revenues of $5.06 billion, compared to $216 million profits on revenues of $4.78 billion for third quarter 2000.

“Our financial performance in the third quarter continued to reflect the benefits of diversification; however, several key industries we serve -- especially truck engines -- remained extremely weak,” said Chairman and CEO Glen Barton. “While continued economic uncertainty following last month’s terrorist attacks will impact fourth quarter sales volume to some extent, we expect to deliver full-year results close to our initial outlook.”
Engine sales were $1.73 billion, up 3% from third quarter last year. Physical sales volume increased 6%, due largely to continuing strong demand for power generation products, particularly in North America, and significantly higher sales to oil and gas industries and marine applications.
The company said that sales to North American truck OEMs remained depressed.
Caterpillar said machinery sales were up in all regions of the world.
Revenues totaled $2.98 billion for the quarter, a 7% increase from a year ago. Revenues from financial products were $417 million, up 8% from third quarter 2000.
Little if any improvement in world markets is expected the rest of this year or in 2002. The company noted that world economic growth slumped sharply in the first nine months of 2001. The downtrend became sharper after the terrorist attacks, with short-term negative shocks to U.S. investor/consumer confidence and a retrenchment in overall spending. Weak overall economic growth is now expected to continue into 2002.
The growth recovery, previously expected to commence in the third quarter, is now expected to be delayed several months. Absent further shocks, actions already taken and those expected to be taken by the U.S. Federal Reserve and Congress are projected to spark signs of a rebound in the U.S. economy by early 2002. Caterpillar said it expects complementary stimulus measures in Europe, the U.K. and Canada, to set the stage for a broader global recovery in the second half of 2002.