Product range, dealer support, service businesses and trough planning position Caterpillar for success and sustained market leadership under any conditions
PEORIA, Ill., Aug. 4 /PRNewswire-FirstCall/ -- Caterpillar Inc. (NYSE: CAT) Chairman and Chief Executive Officer Jim Owens told a group of financial analysts and institutional stockholders that Caterpillar's strategic trough planning has positioned Caterpillar for long-term profitability under various economic scenarios. Owens and his leadership team are outlining Caterpillar's business strategy, and how the company has swiftly responded to the current global recession during two days of meetings in Peoria.
During the presentations, Owens and his leadership team ...
- Said Caterpillar expects profits in the $8-10 per share range within five years if the global economy experiences a "normal" recovery cycle
- Indicated Caterpillar has implemented plans to generate annual profits of $2.50 per share during future recessionary conditions
- Outlined Caterpillar's ability to generate significant cash flow
- Reaffirmed Caterpillar's 2009 outlook for sales and revenues in a range of $32 to $36 billion with a 2009 profit range of $0.40 to $1.50 per share including redundancy costs of about $0.75 per share for the year. Excluding redundancy costs, profit is forecast to be between $1.15 and $2.25 per share.
- Reviewed inventory reduction and cost management during the current downturn
- Discussed future efficiency gains from the Caterpillar Production System
- Outlined the growth of service related businesses and the support they provide through the cycle
"We believe a recovery will come and that Caterpillar will benefit from the world's need for the products we make," said Owens. "In the last eight months, Team Caterpillar has demonstrated remarkable agility as we responded to rapid changes in the global economy. Looking forward, there is far too much uncertainty to know when the global economy will turn toward robust positive growth, but no matter what happens, Caterpillar has the people, products, dealer support and strategies to prosper and to support our customers as they make sustainable progress possible in every region of the world," Owens added.
About Caterpillar:
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of $51.324 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.
