A strong market for electric power generation equipment helped soften the impact of a lean North American truck engine market for Caterpillar Inc.,
but the company did feel the pinch in fourth quarter.
The Peoria, Ill.-based manufacturer of engines and heavy machinery posted consolidated sales and revenues of $20.18 billion for 2000 versus $19.7 billion in 1999. Worldwide engine sales for the year came to $7.06 billion, up from $6.85 billion in 1999. North American engine sales were $3.88 billion versus $3.69 billion last year. Along with a strong electric power generation market, Caterpillar says full year results also benefited some from an improved share of the market to North American truck manufacturers.
Fourth quarter engine sales, worldwide, totaled $1.99 billion versus $2.18 billion fourth quarter 1999. North American engine sales for the were $1.02 billion, down from $1.08 billion same period last year. The decline, said Caterpillar, was due primarily to a sharp drop in North American engine demand.
Caterpillar said it expects its sales to be flat this year, with higher demand in the petroleum and electric power generation markets offsetting lower truck engine sales. The company is forecasting moderate growth for the world economy, due mainly to slowdowns in major industrial countries. For the U.S., it forecasts GDP growth at 2.5% this year, about half the growth rate of 2000, with lower interest rates expected to spur growth acceleration in third or fourth quarter.