Summary
Caterpillar Inc. (CAT) reported its third-quarter 2003 financial results on October 16, 2003, indicating a solid performance with a 9% increase in sales and revenues year-over-year, reaching $5.55 billion. This growth was primarily driven by higher machinery volume and a favorable currency impact, particularly from a stronger Euro. The company also announced an increase in its full-year profit outlook, now expecting approximately $3.00 per share, reflecting a continued focus on cost control. This positive outlook signals management's confidence in ongoing market recoveries and operational efficiencies. The company reported a profit of $222 million ($0.62 per share) for the quarter. Excluding a one-time bond retirement charge of $40 million after-tax ($0.11 per share), adjusted profit rose by 23% to $262 million ($0.73 per share). Key drivers for this profit improvement included reduced core operating costs, attributed in part to the company's 6 Sigma initiative, and improved price realization. These gains were partially offset by higher retiree pension and healthcare costs.
Key Highlights
- 1Third-quarter 2003 sales and revenues increased by 9% to $5.55 billion, up from $5.08 billion in Q3 2002.
- 2Profit for the quarter was $222 million ($0.62 per share), with adjusted profit (excluding a bond retirement charge) up 23% to $262 million ($0.73 per share).
- 3The company raised its full-year 2003 profit outlook to approximately $3.00 per share.
- 4Key drivers for sales growth included higher machinery volume ($226 million) and favorable currency impacts ($128 million), primarily from a stronger Euro.
- 5Profitability improvements were supported by lower core operating costs ($59 million) and improved price realization ($34 million).
- 6Worldwide employment stood at 68,006 at the end of Q3 2003, a decrease of approximately 3% year-over-year.
- 7Caterpillar increased its quarterly cash dividend to $0.37 per share and extended its share repurchase program.