LAS VEGAS, March 11 /PRNewswire-FirstCall/ -- Highlighting the demand for large-scale infrastructure projects around the world and continued strength in key industries served by Caterpillar Inc. , Caterpillar Chairman and CEO Jim Owens outlined positive long-term growth expectations for the company during a presentation to financial analysts and institutional stockholders today. Owens provided the update on Caterpillar's corporate strategy at CONEXPO/CON-AGG 2008, the largest construction equipment exhibition in North America.
"There are significant new infrastructure growth opportunities in the world's emerging markets and a need for infrastructure reinvestment in North America and Europe. Over the next decade, that should translate into increased sales of Caterpillar machinery, engines and related services," Owens said. "In addition, most emerging-market economies are in good shape, with relatively low inflation and interest rates and strong balance sheets. They have a need to invest in infrastructure, and they have the resources to do it."
To position Caterpillar to capitalize on these global growth opportunities, Owens discussed the company's planned investments in research and development (R&D) and increasing capital expenditures to add capacity.
"We continue to increase capacity and plan to invest about $2.3 billion in capital expenditures this year," said Owens. "We'll also be deploying significant resources in the area of R&D for new products, to meet global emissions standards, to support the growth needs of our customers and to ensure our global leadership position."
Additional highlights from Owens' presentation included: -- Sales and revenues approaching $60 billion by 2010 -- Profit per share growth in the range of 15 to 20 percent from a 2005 base through 2012 -- 2008 sales and revenues outlook maintained at up 5 to 10 percent -- 2008 profit per share outlook maintained at up 5 to 15 percent -- A broader emphasis on emerging markets as a critical success factor in Caterpillar's enterprise strategy
Owens also updated analysts on the continued deployment of the Caterpillar Production System (CPS), which with 6 Sigma is improving manufacturing efficiencies in Caterpillar's global operations.
"CPS is already driving great improvements in safety and across the board improvements in our early hour machine reliability," Owens added. "Going forward, we expect CPS-related improvements in velocity and manufacturing costs. No company is better positioned to compete in today's global economy than Caterpillar, and by delivering on our strategy, we will reward our customers, our employees and, of course, our stockholders."
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 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. More information is available at http://www.cat.com/.
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Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will," "expect," "anticipate" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, changes in economic conditions; currency exchange or interest rates; political stability; market acceptance of the company's products and services; significant changes in the competitive environment; epidemic diseases; changes in law, regulations and tax rates; and other general economic, business and financing conditions and factors described in more detail in the company's Form 10-K filed with the Securities and Exchange Commission on February 22, 2008. This filing is available on our website at http://www.cat.com/sec_filings. We do not undertake to update our forward-looking statements.
