8-KOther Events

CATERPILLAR INC 8-K Report (Apr 16, 2002)

Filed April 16, 2002For Securities:CAT

Summary

Caterpillar Inc. (CAT) reported its first-quarter 2002 results, with sales and revenues of $4.41 billion and a profit of $80 million, or $0.23 per share. This represents a decrease from the first quarter of 2001, which saw sales of $4.81 billion and a profit of $162 million ($0.47 per share). The decline in profit was primarily attributed to lower sales volumes for larger machines and engines, coupled with related manufacturing inefficiencies. Despite the year-over-year decline, Caterpillar reaffirmed its full-year sales and revenue forecast to be about the same as last year. The company also projects a slight increase in full-year profit, driven by ongoing cost reduction efforts and efficiency improvements through 6 Sigma projects. Management expressed confidence in the company's diverse product offerings, global presence, and low dealer inventory levels as factors positioning it for a strong performance as global economic conditions improve, particularly in the second half of the year.

Key Highlights

  • 1First-quarter 2002 sales and revenues were $4.41 billion, down from $4.81 billion in Q1 2001.
  • 2First-quarter 2002 profit was $80 million ($0.23 per share), a decrease from $162 million ($0.47 per share) in Q1 2001.
  • 3The decline in profit was mainly due to lower sales volumes of larger machines and engines, and related manufacturing inefficiencies.
  • 4Caterpillar reaffirmed its full-year sales and revenue forecast to be approximately flat compared to 2001.
  • 5The company expects full-year profit to be slightly up in 2002, excluding non-recurring charges from 2001.
  • 6Sales in Asia/Pacific and Latin America showed increases, partially offsetting declines in North America and EAME.
  • 7Caterpillar's Financial Products Division continued its strong performance, with profit up 8% year-over-year.

Frequently Asked Questions

Caterpillar reported sales and revenues of $4.41 billion and a profit of $80 million, or $0.23 per share, for the first quarter of 2002. This is a decrease compared to the $4.81 billion in sales and $162 million ($0.47 per share) profit reported in the first quarter of 2001.

Caterpillar reaffirms its expectation that full-year 2002 sales and revenues will be about the same as in 2001. The company also projects a slight increase in full-year profit, excluding non-recurring charges incurred in 2001. This optimism is based on anticipated improving global business conditions in the second half of the year and ongoing cost reduction efforts.

The primary reasons for the decrease in profit were lower sales volumes of larger machines and engines, along with related manufacturing inefficiencies. Additionally, sales declined in North America and Europe, Africa & Middle East, which partially offset sales gains in Asia/Pacific and Latin America.

The Financial Products Division continued its strong performance. While revenues were down slightly by 1% to $402 million, before-tax profit increased by 8% to $90 million, driven by a better spread on the portfolio and higher underwriting income, despite an increased provision for credit losses.