Cat sees improvement in 2010

Caterpillar's sales for the third quarter of the year came to US$ 7.30 billion, -44% lower than the US$ 12.98 billion achieved in the third quarter of 2008. Net profits for the quarter stood at US$ 404 million, down -53% from the US$ 833 million achieved for the same period last year.

Chairman & CEO Jim Owens said, "We are pleased with this quarter's profit given the severe economic environment and with our sales well below end-user demand as dealers continue to aggressively draw down inventories."

Forecasts

Caterpillar expects its revenues for 2009 to come in between US$ 32 billion and US$ 33 billion, some -37% lower than the figure of US$ 51.3 billion seen in 2008. It expects to make a profit of between US$ 1.10 and US$ 1.30 per share, compared to US$ 5.66 per share in 2008.

Looking ahead to 2010, the company says revenues should be up between +10% and +25% on the midpoint of its 2009 forecast, which is to say, between US$ 35.8 billion and 40.6 billion.

"While 2010 will still be a difficult year, we expect improvement in our top line from the lows of 2009, and it's critical that we manage on the way up as well as we did in the face of declining volume. As a result, we've already started planning for an upturn. When it comes, it can come quickly, and we, our dealers and our suppliers will be prepared," said Mr Owens.