PEORIA, Ill. (AP) _ Caterpillar Inc. nearly doubled its net profits for the second quarter, driven by cost-cutting measures, a strong euro and increased machinery and engine sales, the company reported
July 17.
The heavy-equipment maker earned $399 million, or $1.15 a share, for the three months ended June 30, up 99 percent from $200 million, or 58 cents per share, a year ago.
Earnings far surpassed Wall Street’s expectations. Analysts surveyed by Thomson First Call had anticipated 66 cents a share.
The Peoria-based manufacturer reported revenue for the quarter of $5.93 billion, up 12 percent from $5.29 billion in the same period last year.
”Political and economic uncertainty continued in the second quarter, but we made significant progress by focusing on areas we could control. We held the gains on revenue yield, controlled costs and continued to produce quality products our customers value,’ said Glen Barton, Caterpillar’s chairman and chief executive.
The news prompted the company to boost its full-year outlook for sales and revenues.
Barton said he expects an increase of about 10 percent for 2003, predicting a profit for the year of $2.75 to $2.90 per share. After the first quarter, Barton estimated sales and revenue would be flat to up 4
percent for the year.
Analysts surveyed by First Call predicted a per-share profit of $2.30 for the year.
Even though machinery and engine sales volume increased, Barton said the manufacturer’s sales mix remains a challenge. Changes in federal emissions standards and higher pension and health care costs also
had a negative effect, he said.
The company said a stronger euro and Australian dollar, lower core operating costs and improved revenue yield helped increase second-quarter profits.
For the first six months, earnings were $528 million, or $1.52 a share, up from $280 million, or 81 cents a share, in the same period a year earlier. Revenues climbed to $10.75 billion from $9.7 billion.
Caterpillar designs and produces mining and construction machinery as well as engines for earth-moving and construction machines. It is the world’s No. 1 maker of earth-moving equipment.
Caterpillar stock opened trading up $2.21, or 3.79 percent, to $60.50 per share July 17 on the New York Stock Exchange.
