Caterpillar’s sales and profits up for 2003

PEORIA, Ill. – Engine and machinery builder Caterpillar Inc. (NYSE: CAT) saw 2003 sales and revenues of $22.76 billion and profit of $1.1 billion or $3.13 per share, the company reported in a statement today. For the fourth quarter, sales and revenues were $6.47 billion and profit was $349 million or $0.97 per share.

Sales and revenues of $22.76 billion were up 13 percent compared to $20.15 billion in 2002, according to the manufacturer. The increase was primarily due to higher machinery and engines volume of $1.29 billion, a favorable currency impact on sales of $683 million, favorable price realization of $260 million and higher financial products revenues of $211 million, Caterpillar reported.

Engines sales were $7.37 billion, an increase of $697 million or 10 percent from 2002. In addition, sales to the marine sector rose 2 percent, helped by slightly higher industry demand and favorable effects of currency, according to the company.

For the fourth quarter, sales and revenues of $6.47 billion were up 20 percent compared to $5.38 billion in the fourth quarter 2002.

“Caterpillar had an excellent year,” said Chairman and CEO Glen Barton. “We took full advantage of the recovering capital goods market to make real progress on our growth objectives while continuing to lower Core Operating Costs. With a 13 percent sales and revenue increase this year, we are well on our way to achieving our growth target of $30 billion of sales and revenues in this decade.”

Profit of $1.1 billion or $3.13 per share was up 38 percent compared to $798 million or $2.30 per share in 2002. The profit increase was due to improved price realization of $260 million, lower core operating costs of $231 million and the favorable impact of higher sales volume of $175 million.

“Our performance this year demonstrated to investors our commitment to deliver long-term profitable growth,” said Barton. “In addition, we made significant progress on other key strategic initiatives. After an aggressive development program, we introduced ACERT technology, earning Caterpillar the distinction of being the only engine manufacturer with a full line of 2004 EPA certified and compliant clean diesel engines.”

A positive outlook for 2004

Owens stated that the company expects it momentum in 2003 “will carry into 2004.

“We now expect sales and revenues to increase about 12 percent in 2004 over 2003,” he said. “With this growth, we will continue to focus on cost management and expect 2004 profit to be up about 40 percent compared to 2003.”

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