Caterpillar reported record third quarter 2006 sales and revenues of $10.517 billion and record third quarter profit of $769 million, or $1.14 per share. Sales and revenues increased 17 percent, and profit per share was up 21 percent compared with the third quarter of 2005. Sales and revenues for the first nine months of 2006 of $30.514 billion and profit of $2.655 billion, or $3.86 per share, were also records.
“We achieved this quarter’s results due in great part to the efforts of Caterpillar’s employees, dealers and suppliers who continue to work to remove bottlenecks and increase production for a number of products,” says Jim Owens, Caterpillar chairman and chief executive officer. “Team Caterpillar remains focused on achieving our 2010 goals and executing our corporate strategy with 6 Sigma; especially in the areas of quality, safety and velocity.”
Sales and revenues increased $1.540 billion; $1.063 billion from higher sales volume, $290 million from improved price realization, $97 million from the effects of currency and $90 million from higher financial products revenues.
Third quarter profit increased $102 million from third quarter 2005. The increase was largely due to improved price realization and higher sales volume, partially offset by higher costs, including approximately $80 million of expense related to various legal disputes, principally a settlement with Navistar.