09.05.2004

Caterpillar revenues rise 34 percent

Caterpillar the worlds largest producer of construction machinery has reported first quarter revenues up 34 percent and profits up by 320 percent on 2003, substantially beating its forecasts. The company has upgraded revenue and profitability expectations for the full year.

Revenues for the first quarter were $6.5 Billion compared to $4.8 billion in the same period of 2003 a rise of 34 percent. Most of the increase came from Machinery and engine sales, and was widespread geographically. Europe posted a 22 percent revenue rise in dollar terms.

Profits for the period leapt by 320 percent to $412 million from $129 million last year, this due to the substantially higher revenues, currency benefits from the high Euro/ low Dollar and the elimination of environmental non conformance penalties for its engine division.

Caterpillar also feel confident enough in the ongoing growth of the world economy to upgrade its forecast for the year from a 12 percent rise in revenues to 20 percent.

Caterpillar does not break out sales by product so it is not possible to see how Telehandler sales fared for the quarter. The company did though state that sales to European rental companies rose substantially, posting a 19 percent improvement, which they anticipate will continue to gain momentum during the year as European rental companies replace ageing equipment.

This also reflects the growing presence of the Cat Rental store franchises: In addition to the Caterpillar distributor network, acquisitions of major independents has continued, with Cramo, Hewden and MVS all now coming under the Cat Rental store umbrella.