Posted on 01/26/2006 5:52:00 AM PST by janetjanet998
Caterpillar projects $40 billion in sales and revenues and profit per share between $4.65 and $5.00 for 2006 and will place even greater emphasis on employee safety, product quality and product availability
PEORIA, Ill., Jan. 26 /PRNewswire-FirstCall/ -- Caterpillar Inc. (NYSE: CAT - News) effectively responded to unprecedented customer demand in 2005 and reports full-year sales and revenues of $36.339 billion and profit per share of $4.04. Sales and revenues rose 20 percent from 2004, and profit per share was up 40 percent -- both were records. Fourth-quarter sales and revenues of $9.663 billion and profit per share of $1.20 were both all-time records for any quarter in Caterpillar history.
2005 was an incredibly strong year for us," said Caterpillar Chairman and Chief Executive Officer Jim Owens. "With the surge in customer demand and production, our employees, suppliers and dealers have responded in spectacular fashion to help us realize the opportunity. We should celebrate our 2005 accomplishments knowing Caterpillar is extremely well-positioned going forward."
2005 sales and revenues of $36.339 billion were up $6.033 billion, or 20 percent, from 2004. The increase was a result of $3.715 billion of higher sales volume, $1.827 billion of improved price realization and a $363 million increase in Financial Products revenues.
Profit of $2.854 billion, or $4.04 a share, was up 40 percent. The improvement was primarily the result of higher price realization and sales volume, partially offset by an increase in core operating costs. The increase was a result of higher material costs, primarily steel, and costs to support higher volume and ongoing investment in new products and technology.
"Our focus this year has been on meeting customer delivery expectations while creating stockholder value. I'm gratified by what Team Caterpillar has accomplished in the face of unprecedented demand," Owens said. "Over the past two years we've more than doubled production at several of our manufacturing facilities, particularly those manufacturing large machines. We've done this without additional bricks and mortar and with a focus on managing our period cost structure."
Caterpillar is apparently doing a LOT of work in China. Lots and lots and lots of building going on there.
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