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PEORIA, Ill. – Caterpillar announced today that it effectively responded to unprecedented customer demand in 2005 and reports full-year sales and revenues of $36.339 billion. Sales and revenue rose 20 percent from 2004, and profit per share was up 40 percent, both records for the company. Fourth-quarter sales and revenue of $9.663 billion also was an all-time record for any quarter in Caterpillar history.
"2005 was an incredibly strong year for us," said Caterpillar Chairman and Chief Executive Officer Jim Owens. "With the surge in customer demand and production, our employees, suppliers and dealers have responded in spectacular fashion to help us realize the opportunity. We should celebrate our 2005 accomplishments knowing Caterpillar is extremely well-positioned going forward."
2005 sales and revenues of $36.339 billion were up $6.033 billion, or 20 percent, from 2004. The increase was a result of $3.715 billion of higher sales volume, $1.827 billion of improved price realization and a $363 million increase in Financial Products revenue.
Profit of $2.854 billion, or $4.04 a share, was up 40 percent. The improvement was primarily the result of higher price realization and sales volume, partially offset by an increase in core operating costs. The increase was a result of higher material costs – primarily steel – and costs to support higher volume and ongoing investment in new products and technology.
"Our focus this year has been on meeting customer delivery expectations while creating stockholder value. I'm gratified by what Team Caterpillar has accomplished in the face of unprecedented demand," Owens said. "Over the past two years we've more than doubled production at several of our manufacturing facilities, particularly those manufacturing large machines. We've done this without additional bricks and mortar and with a focus on managing our period cost structure."
In 2006, the company expects sales and revenues of about $40 billion and profit per share between $4.65 and $5.
"2006 should be another year of excellent growth for Caterpillar, " Owens said. "Most of the industries we serve are strong, and the fundamental economic picture remains positive. Our emphasis is on execution with 6 Sigma as we implement our new strategy to achieve our 2010 goals, with even greater focus on improving employee safety, product quality and product availability."