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.