Summary
Caterpillar Inc. reported third-quarter 2000 results with total sales and revenues of $4.78 billion, a slight 1% increase year-over-year, driven primarily by higher physical volume. While sales saw a modest uptick, profit was marginally down by 1% to $216 million, equating to $0.62 per share. This slight profit decline is attributable to unfavorable currency effects and increased selling, general, and administrative (SG&A) and research and development (R&D) costs, though these were partially offset by a tax adjustment, improved pricing (excluding currency), and higher sales volume. The company's Financial Products segment demonstrated strong revenue growth of 12%. Geographically, sales within the United States increased as a percentage of total worldwide sales, rising from 47% to 49%. Caterpillar is actively managing its share count, having repurchased 2 million shares during the quarter as part of a larger program aimed at reducing outstanding shares. The company maintains a positive outlook, expecting full-year sales and revenues to be slightly higher than 1999 and profit to increase moderately, with a similar slight increase in sales anticipated for 2001.
Key Highlights
- 1Total sales and revenues for Q3 2000 reached $4.78 billion, a 1% increase compared to Q3 1999, mainly due to higher physical sales volume.
- 2Profit for the quarter was $216 million, a 1% decrease from the prior year, impacted by currency headwinds and higher operating expenses.
- 3Profit per share was $0.62, a 2% increase year-over-year.
- 4Revenues from the Financial Products segment grew by 12% compared to the third quarter of 1999.
- 5Sales within the United States represented 49% of worldwide sales, up from 47% in the prior year's third quarter.
- 6Caterpillar repurchased 2 million shares during the quarter as part of its ongoing program to reduce outstanding shares.
- 7The company reiterated its full-year 2000 outlook for slightly higher sales and moderate profit growth, and anticipates a slight increase in sales for 2001.