Caterpillar Inc. reported third-quarter sales and revenues of $5.06 billion and profit of $205 million, or 59 cents per share. Sales and revenues were $277 million higher than third-quarter 2000, as a result of a 6 percent increase in physical sales volume and a 9 percent increase in financial products revenues.
Company profit was $11 million, or 5 percent lower than third-quarter 2000, which was favorably impacted by a nonrecurring $39 million tax adjustment at Caterpillar Brasil Ltd. Excluding this adjustment to third-quarter 2000 results, profit increased $28 million primarily due to the higher sales volume.
Profit was adversely impacted by cost inefficiencies caused by significant volume shifts at some manufacturing facilities and higher selling, general and administrative expenses (SG&A). SG&A increases were related to special projects for future growth and to improve long-term cost structure.
"Our financial performance in the third quarter continued to reflect the benefits of diversification, however several key industries we serve – especially truck engines -– remained extremely weak," said Chairman and CEO Glen Barton.
"While continuing economic uncertainty following last month’s terrorist attacks will impact fourth-quarter sales volume to some extent, we expect to deliver full-year results close to our initial outlook. We’re on track to achieve first-year bottom line benefits from our global implementation of 6 Sigma, a first for any company undertaking such an effort. Most importantly, our commitment to improve shareholder value by achieving our
long-term growth and cost reduction goals is unwavering."
