Caterpillar announces record second-quarter sales and revenues

Company posts high numbers despite poor North American sales

News PR Newswire July 20, 2007
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Caterpillar Inc. recently posted record second-quarter sales and revenues of $11.356 billion, despite a $1.063 billion decline in physical sales volume in North America. The company also reported profit of $823 million, or $1.24 per share, for the second quarter ending June 30, 2007.

"We're pleased with second-quarter sales and revenues which demonstrated the strength of our global reach. Sales growth outside of North America largely offset the impact of the planned decline in North American dealer machine inventories, the severe drop in demand for on-highway truck engines and weakness in North American construction markets," said Chairman and Chief Executive Officer Jim Owens. "Sales and revenues were up 7 percent from last year's second quarter. The strength of economies outside of North America, our broad global footprint and growth in diversified service businesses all helped us deliver higher sales."

Sales and revenues of $11.356 billion increased $751 million from the second quarter of 2006. The increase was a result of several factors, including a $943 million improvement in sales volume outside North America, $411 million of sales from Caterpillar acquisition Progress Rail and $198 million of higher sales related to the impact of currency.

"While costs were a challenge, we were pleased with the spectacular sales growth outside North America and the performance of our engine businesses other than on-highway truck. As we look forward, we're encouraged by the strength of our order board overall, particularly for our large machines and engines," said Owens.

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