How did Caterpillar's sales and revenues perform in the first quarter of 2008?

Caterpillar reported record sales and revenues of $11.796 billion for the first quarter of 2008, an 18% increase compared to $10.016 billion in the first quarter of 2007. This growth was driven by higher sales volume, favorable currency impacts, improved price realization, and strong performance in the Financial Products segment.

What are the primary drivers behind Caterpillar's strong performance despite economic challenges in North America?

The company's strong performance is largely attributed to robust demand for its products in key global sectors like mining and energy, and for infrastructure development, particularly in emerging markets outside of North America. Diversification across end-markets and the strength of its integrated service businesses also contribute significantly.

What is Caterpillar's outlook for the remainder of 2008?

Caterpillar maintained its positive outlook for 2008, expecting another record year. The company forecasts sales and revenues to increase between 5% and 10%, and profit per share to grow by 5% to 15% compared to 2007, driven by continued global investment and demand, especially in regions outside North America.

How is the Financial Products segment performing, and what are the key risks highlighted?

The Financial Products segment reported its best first quarter ever for revenues and profit, demonstrating resilience amidst credit market challenges. However, the report notes an increase in past due accounts, primarily related to the downturn in the U.S. housing industry, and anticipates continued upward pressure on U.S. past dues throughout 2008.

CAT 10-Q Quarterly Report Q1 FY2008 — Revenue, Net Income, EPS

Summary

Caterpillar Inc. (CAT) reported a strong first quarter for 2008, exceeding previous records for both profit per share and total sales and revenues. Despite a challenging economic environment in North America, the company saw significant growth driven by robust demand in global mining, energy, and infrastructure sectors, particularly in emerging markets. The Financial Products segment also achieved its best first quarter ever in terms of revenue and profit, demonstrating resilience amid credit market challenges. The company anticipates another record year in 2008, forecasting continued global growth and investment, positioning Caterpillar to leverage its diversified business model and global reach. Key drivers for this optimistic outlook include strong commodity prices, increased drilling activity, and ongoing infrastructure development worldwide, with particular strength expected from regions outside North America.

Key Highlights

1Record First Quarter Profit per Share: CAT reported $1.45 per share, an 18% increase from $1.23 in Q1 2007.
2Record Sales and Revenues: Total sales and revenues reached $11.796 billion, up 18% from $10.016 billion in Q1 2007.
3Strong International Performance: Sales and revenues outside North America increased by 30%, now representing 58% of total sales and revenues.
4Robust Demand in Key Sectors: Significant demand was noted for products in global mining, energy industries, and for infrastructure projects, especially in emerging markets.
5Financial Products Segment Strength: The Financial Products business achieved record revenues and profit for the first quarter, showing resilience despite credit market challenges.
6Positive 2008 Outlook: The company maintained its forecast for another record year with sales and revenues expected to increase 5-10% and profit per share up 5-15% from 2007.
7Increased Capital Expenditures: Investment in productivity and capacity expansion continued, with capital expenditures (excluding leased equipment) up to $343 million from $252 million in Q1 2007.

CATERPILLAR INC Quarterly Report for Q1 Ended Mar 31, 2008

Summary

Key Highlights

Frequently Asked Questions