Caterpillar celebrates positive first quarter

Caterpillar Inc., Peoria, Ill., reported first-quarter 2003 sales and revenues of $4.82 billion and profit of $129 million, or 37 cents per share.

Sales and revenues of $4.82 billion were up 9% compared to $4.41 billion in the first quarter of 2002. Sales and revenues increased due primarily to currency-related price realization and some higher volume in truck engines and machines.

Profit of $129 million increased 61% compared to $80 million in the first quarter of last year. It was up due to the favorable impact of improved operating efficiencies, better price realization and higher volumes.

"In this challenging and uncertain business environment, Caterpillar people around the world continued to demonstrate flexibility and sustained emphasis on cost reduction," said Cat Chairman and CEO Glen Barton. "This resulted in strong year-over-year improvement in financial results."

Caterpillar maintained its focus on diversification this quarter with new service agreements in Cat Logistics, dealer expansion of Cat Rental Stores and continued portfolio growth at Cat Financial. Geographic diversity also benefited Caterpillar this quarter with strong growth in Asia, most significantly in China. In addition, Caterpillar recorded a substantial improvement this quarter in its percentage of industry sales for heavy-duty truck engines.