Citing continued strength in markets outside of the United States, Caterpillar last week announced third-quarter sales and revenues of $11.4 billion, an all-time quarterly high. The company also reported profit of $927 million, or $1.40 per share, for the quarter ended Sept. 30. Profit and profit per share were also the highest ever for a third quarter.
“These results clearly demonstrate our global reach and the stability and strength of our growing integrated service businesses,” said Jim Owens chairman and CEO. “We delivered strong returns for our stockholders despite continuing severe weakness in key U.S. markets. Overall, profit per share climbed 23 percent compared to last year's third quarter, and moving forward I am confident that our deployment of the Cat Production System will help us reach our 2010 goals for improving safety, quality, velocity, earnings and growth,” said Owens.
Sales and revenues increased $925 million compared to the third quarter of last year, $385 million from higher sales volume, $267 million from improved price realization, $174 million from the effects of currency and $99 million from higher Financial Products revenues.
“Despite weakness in U.S. markets, our sales and revenues increased 9 percent,” Owens said. “We continue to see remarkable growth outside of the United States with particular strength in key industries like mining, oil and gas, electric power and marine engines. The industries we serve are becoming increasingly global, and the investments we are making to achieve our 2010 goals have us well positioned to meet their needs.”
The full-year outlook for 2007 is for sales and revenues of about $44 billion and profit per share in the range of $5.20 to $5.60, compared to $5.17 per share in 2006. The previous outlook for 2007 sales and revenues was about $44 billion, and profit per share was $5.30 to $5.80.
Caterpillar's preliminary outlook for 2008 reflects a sales and revenues increase of 5 to 10 percent and profit per share up 5 to 15 percent from the mid-point of the 2007 outlook range.