The Company says it posted a thirdâ€“quarter profit of 404 million dollars, or 64 cents a share. It is significantly lower from a year earlier, but it was well above industry expectations, and Cat says the worst may be over.Â Sales and revenues were off 44 percent from a year earlier.Given the severe economic environment, CAT implemented what it calls “trough management” lowering production and reducing costs as dealers cut inventories.
“Weâ€™re very pleased with our profits this quarter specially considering these severe economic times that we are facing. It is a testament to our leadership that they continue to implement our cross planning. Theyâ€™ve lowered our production levels to match fewer demand and theyâ€™ve basically managed costs down throughout the corporation. So this has really been a teen effort and it shows. Everybodyâ€™s rolled up their sleeves and managed our way through this down turn,” said Kate Kenny, Caterpillar spokeswoman.
Caterpillar expects 2009 sales and revenues of 32 to 33 billion dollars. The preliminary outlook for 2010 sales and revenues is an increase of 10 to 25 percent from earlier projections.
Recently the Peoria based equipment manufacturer held several press conferences introducing new products. Earlier this month they introduced new mining trucks â€“ 793 F with 250 ton capacity, and the 797 F with 400 ton capacity — including a new diesel-electric drive rigid frame hauler, the 795 F AC with 345 ton capacity.
At the recent ICUEE show the company introduced itâ€™s tier 4 intermediate engines and then last week held a customer demonstration of its pipelayer product line and new technologies to improve production, performance and efficiency.
Cat stressed the fact that it was making certain that it was ready to answer dealer and customer needs to help them survive the economic challenges and be ready when the demand resumes. The general feeling that prevailed thorough all of these events is that we have hit bottom and are now on the road to recovery.