27.07.2004

CAT breaks revenue records

Caterpillar, the world’s largest construction equipment producer and significant Telehandler manufacturer and rental franchiser has reported a record quarter for the period to June 30th 2004

Second-quarter sales and revenues were up 27 percent to $7.56 billion an increase of $1.63 billion compared to the $5.93 billion in the same period of 2003. The increase in sales and revenues was driven by $1.35 billion of higher Machinery and Engines volume, $131 million of increased Price Realisation, a $116 million favorable impact of Currency on sales due primarily to the strengthening euro and $33 million of higher Financial Products revenues.

Revenues for the half year also set new records at $14.03 billion creating a profit of $964 million, worth $2.71 per share.

“We achieved record results in the second quarter as demand continued to surge and volume remained high across major industries and geographic markets. Our extended team of employees, suppliers and dealers intensified efforts this quarter to expedite material and make products available to our customers worldwide, allowing us to benefit from the best set of economic conditions we have seen in many years,” said Caterpillar Chairman and CEO Jim Owens.

“We made a strategic decision to satisfy unprecedented customer demand even though this resulted in increased operating costs. These include higher material costs, mainly due to steel surcharges and increased expediting costs to ensure timely delivery of material. We believe we are better positioned than our competitors to serve customers given our worldwide sourcing capability and extended dealer network,” said Owens.