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Caterpillar Reports Record Profits01-26-07 | News

Caterpillar Reports Record Profits

PEORIA, Ill. ?EUR??,,????'??+ Marking the fourth straight year of double-digit profit growth and the third consecutive year of record sales and profit, Caterpillar Inc. reported 2006 sales and revenues of $41.517 billion and profit of $3.537 billion, up 28 percent from a year ago. The company also reported a record fourth quarter with sales and revenues of $11.003 billion and profit of $882 million, up 10 percent from last year.

?EUR??,,????'??2006 was an extraordinary year for Caterpillar,?EUR??,,????'?? said Chairman and Chief Executive Officer Jim Owens.

For the year, sales and revenues increased $5.178 billion, while the company?EUR??,,????'???s 2006 profit increased $683 million from 2005. The increase was largely due to improved price realization and higher sales volume, partially offset by higher core operating costs.

For the fourth quarter, sales and revenues increased $1.340 billion while fourth-quarter profit increased $36 million from 2005.

“What Team Caterpillar was able to accomplish in 2006 is a reflection of the diversity of the industries we serve, the global need for our products and services and the strength of our partnership with our dealers and suppliers,” Owens said.

In 2007, the company expects another record year with sales and revenues in a range of $41.5 to $43.6 billion, which is flat to up five percent from 2006, and profit in a range of $5.20 to $5.70 per share.

“I’m anticipating great things for Caterpillar in 2007. Despite a sharp decline in two key North American industries ?EUR??,,????'??+ on-highway truck engines and U.S. housing?EUR??,,????'??+and an expected reduction in dealer inventories, we are projecting another record year in 2007,” Owens said.