28.01.2007

CAT posts another record year

Caterpillar sales increased by over 14 percent in 2006 to a new record of $41.5 billion. $3.3 billion (8%) of the $5 billion increase came from additional volume and $1.5 billion from price increases. Over $2 billion of the additional revenues came from machinery sales.

The Euroean, Africa- Middle East market significantly outpaced North American growth, growing by 16 percent for the full year but by a 42 percent in the fourth quarter as Europe and Middle East economies gathered pace.

Goup profits after tax jumped to $3.5 billion and increase of $683 million or 25 percent on 2005.

The company expects 2007 revenues to increase by five percent to over $43 billion with profits growing at a significantly higher rate due to efficiencies and “cost management”.

"2006 was an extraordinary year for Caterpillar. It was the best ever in terms of top-line sales and revenues and profit. The commitment of our employees, dealers and suppliers allowed us to achieve these financial results, and I thank them for their hard work," said chairman and chief executive officer Jim Owens.

Vertikal Comment

Caterpillar is benefiting from the fact that the most of the world’s economies are growing at the same time and it has truly global coverage. It has set itself a relatively modest growth target for 2007 which it is almost certain to beat.

Its longer term revenue target is to reach $50 billion by 2010, if the world economy continues at its current pace it is likely to achieve this by 2008.