Caterpillar eyes profitability
By Steve Skinner06 August 2009
Caterpillar CEO Jim Owens has said the company is now positioned for long-term profitability even if the global crisis means sales remain at a depressed level.
Mr Owens said, "We believe a recovery will come and that Caterpillar will benefit from the world's need for the products we make.
"In the past eight months, Caterpillar has demonstrated remarkable agility as we responded to rapid changes in the global economy," he said.
"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 and strategies to prosper," continued Mr Owens.
He confirmed the company expects profits in the US$ 8-10 per share range within five years if the economy experiences a "normal" recovery cycle, and suggested that even in future recessionary conditions, annual profits of US$ 2.50 per share were possible.
Mr Owens also reaffirmed Caterpillar's 2009 outlook, saying, "We expect annual sales in the range of US$ 32 - 36 billion with a profit range of between US$ 0.40 - 1.50 per share, including redundancy costs of approximately US$ 0.75 per share."