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Caterpillar Chairman and CEO Jim Owens Discusses Future Profit Targets for Various Economic Scenarios

Wednesday, August 5th, 2009

Caterpillar Inc. (NYSE: CAT) Chairman and Chief Executive Officer Jim Owens told a group of financial analysts and institutional stockholders that Caterpillar’s strategic trough planning has positioned Caterpillar for long-term profitability under various economic scenarios. Owens and his leadership team are outlining Caterpillar’s business strategy, and how the company has swiftly responded to the current global recession during two days of meetings in Peoria.
During the presentations, Owens and his leadership team …
— Said Caterpillar expects profits in the $8-10 per share range within
five years if the global economy experiences a “normal” recovery cycle
— Indicated Caterpillar has implemented plans to generate annual profits
of $2.50 per share during future recessionary conditions
— Outlined Caterpillar’s ability to generate significant cash flow
— Reaffirmed Caterpillar’s 2009 outlook for sales and revenues in a
range of $32 to $36 billion with a 2009 profit range of $0.40 to $1.50
per share including redundancy costs of about $0.75 per share for the
year. Excluding redundancy costs, profit is forecast to be between
$1.15 and $2.25 per share.
— Reviewed inventory reduction and cost management during the current
— Discussed future efficiency gains from the Caterpillar Production
— Outlined the growth of service related businesses and the support they
provide through the cycle
“We believe a recovery will come and that Caterpillar will benefit from the world’s need for the products we make,” said Owens. “In the last eight months, Team Caterpillar has demonstrated remarkable agility as we responded to rapid changes in the global economy. 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, products, dealer support and strategies to prosper and to support our customers as they make sustainable progress possible in every region of the world,” Owens added.
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