8-KOther Events

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

Filed October 16, 2002For Securities:CAT

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.

Frequently Asked Questions

For the third quarter of 2002, Caterpillar reported sales and revenues of $5.08 billion and a profit of $213 million, or $0.61 per share. This represents a slight increase in profit compared to the same quarter in 2001, primarily due to lower income taxes.

Yes, Caterpillar reaffirmed its full-year outlook. The company still expects sales and revenues for the year to be down slightly and full-year profit to be down about 15 percent from last year, excluding nonrecurring charges recorded in 2001. However, the company noted that near-term political and economic uncertainty could impact fourth-quarter results.

Sales and revenues were up slightly due to a 2% increase in Financial Products revenues. Profit for the third quarter was higher primarily due to lower income taxes. Profit before tax decreased due to lower volume in areas like large reciprocating engines and coal mining equipment, which more than offset favorable price realization.

Sales were significantly higher in the Asia/Pacific region, driven by strong growth in China, and also higher in Europe, Africa, and the Middle East due to increased large engine sales. These gains offset declines in North America and Latin America.