25.04.2005

CAT posts Record Profits

Caterpillar Inc has posted record first-quarter sales up 29 percent to $8.34 billion, with profits up 38 percent to $581 million compared to the same quarter in 2004.

The increase in sales revenues came from $1.44 billion of additional machinery and engines volume, $250 million from price increases, a $102 million favorable currency impact from sales in Euros and British pound and $72 million of higher financial products revenues.

“These record results are further evidence of the strength of the many global markets we serve and of our ability to successfully meet this continuing strong market demand,” said chairman and CEO Jim Owens.

“Our operating margins in the first quarter were the best since the first half of 2004 when material cost pressures began to accelerate. We have an unwavering commitment to fulfilling customer demand while improving operating margins through price realization, which more than offsets material cost increases, and enhanced manufacturing efficiencies.”

The company also raised its sales and profit forecasts for the full year. It now expects 2005 revenues to be up 16 to 18 percent with profits per share to increase by 35 to 40 percent on 2004 levels.