Overseas Growth Stimulates Caterpillar Earnings

By News 25 Staff

July 15, 2010 Updated Jan 25, 2008 at 7:44 PM CDT

Caterpillar posted an 11% increase for the fourth quarter based upon strong international growth.

The central Illinois heavy machinery manufacturer earned $975 million, or $1.50 per share.

That's compared with $882 million, or $1.32 per share in during the
same period last year.

Revenue rose ten percent to $12.14 billion. The results were in line with Wall Street forecasts.

The numbers today show the fifth straight year of record sales and revenue.

For all of 2007, sales and revenue were $45 billion, up 8% from 2006.

The results were in line with Wall Street forecasts. Caterpiller says it still expects to grow profit by 5% to 15 % in 2008.

Cat Spokesman Jim Dugan says a drop in sales in North America shows why International Trade is important in Peoria.

Caterpillar equipment is in high demand in far away places like the Middle East, China, and India. That overseas demand propelled Caterpillars fourth quarter report into another one for the record books.

Dugan said, "It is really a fantastic result. Part of it has to do with the fact that a lot of products we make in our key Illinois facilities like East Peoria are exported to other markets."

And those other markets are very strong.

Ten years ago, 56% of all Cat sales were in North America. Last year, they accounted for only 42% of business... which has helped the company become insulated from a downturn in the US market.

The record run is not over. Caterpillar says it expects to grow profits by another five to 15 percent in 2008.

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