Summary
Caterpillar Inc. (CAT) reported third-quarter 2002 results with sales and revenues of $5.08 billion and a profit of $213 million, or $0.61 per share. This performance was largely in line with the prior year's third quarter, with a slight increase in profit driven primarily by lower income taxes. Despite a challenging global economic environment and ongoing business cycle downturn, Caterpillar reaffirmed its full-year outlook, projecting sales to be down slightly and profit to be down approximately 15% from the previous year (excluding nonrecurring charges from 2001). The company highlighted improved machinery and engines cash flow, cost reductions including lower employment levels, and continued investment in new technologies like ACERT for emissions compliance. While overall machinery sales saw a slight decline, engine sales experienced a modest increase. Geographic performance varied, with strong growth in Asia/Pacific, particularly China, and Europe, Africa, and the Middle East, offset by declines in North America and Latin America. The company's Financial Products division also reported revenue growth, though profit before tax saw a decrease.
Key Highlights
- 1Reported Q3 2002 sales and revenues of $5.08 billion and profit of $213 million ($0.61/share).
- 2Reaffirmed full-year 2002 outlook: sales down slightly, profit down approximately 15% year-over-year (excluding 2001 nonrecurring charges).
- 3Third-quarter profit benefited from lower income taxes, despite a decrease in profit before tax due to lower volume in certain engine and equipment segments.
- 4Machinery sales decreased slightly (-2%), but Engine sales increased slightly (+4%).
- 5Strong sales growth in Asia/Pacific (especially China) and Europe, Africa, and the Middle East, offsetting declines in North America and Latin America.
- 6Financial Products division revenues increased by 2% due to portfolio growth.
- 7Company continued to focus on cost reduction, improved cash flow, and investment in new technologies like ACERT.