Caterpillar starts its engine

News PRNewswire September 10, 2001
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A growing and profitable engine business has kept Caterpillar clear of the funnel cloud seen looming over the manufacturing wor

A growing and profitable engine business has kept Caterpillar clear of the funnel cloud seen looming over the manufacturing world this fiscal year. That's what Caterpillar Chairman and CEO Glen Barton essentially told a group of financial analysts this week.


"In the mid 1990s we committed to deliver at least $2 per share during the next economic downturn, and we've done it," Barton said. "During the downturn of 1991, we lost $4 per share, but in 2000 we earned $3.02 per share while facing worldwide economic conditions similar to those of 10 years ago."


Barton credited Caterpillar's diversification efforts with strengthening the company's financial performance--particularly in engines, financial services and logistics.


"We're less reliant on machine sales because of significant growth in our engine, logistics and financial services businesses. For example, non-machine sales grew from 27% of total sales and revenues 10 years ago to more than 40% in 2000. We're a dramatically different company--much better able to manage the economic uncertainties of today's global economy."


Caterpillar's engine business is expected to generate nearly 45% of company sales by 2006 and account for 60% of sales growth in the next five years. Caterpillar is now the leading supplier of engines in distributed power generation, oil and gas, industrial, marine and North American on-highway trucks. The company also is the global leader in industrial turbines up to 30,000 hp.



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