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Non-Tech : CAT-Caterpillar -- Ignore unavailable to you. Want to Upgrade?

To: Rama Janaswamy who wrote (49)	1/12/1998 8:38:00 PM
From: james s	Respond to of 110

Rama, i hope to be seeing you on the boards over the year(s) CAT has held well today. good trades james

To: Rama Janaswamy who wrote (49)	1/21/1998 10:43:00 PM
From: james s	Read Replies (1) \| Respond to of 110

Rama see you next earnings FOCUS-Caterpillar posts record fourth-quarter profit (Adds analysis, company comments, byline. Prvs Peoria, Ill.) By Brad Dorfman CHICAGO, Jan 21 (Reuters) -Heavy equipment maker Caterpillar Inc. CAT.N on Wednesday surprised Wall Street with record fourth-quarter profits of $451 million, driven by a sharp increase in sales despite declines in Asia. The company said recent sales declines in Asia did not have a material impact on results. But it added the company was carefully monitoring the significant economic slowdown in Asia, where it said recessions were likely next year in South Korea, Thailand and Indonesia. Net income, equivalent to $1.22 a share, was up from the $381 million, or $1 a share, posted in the year-ago quarter. It exceeded the consensus analyst estimate of $1.12 a share, according to the First Call research service. The per-share increase of 22 percent outpaced the 18 percent boost in net income because of Caterpillar's large-scale stock repurchase program, which left less shares outstanding. The primary contributor to soaring profits was a 17 percent increase in physical sales volume, which measures sales in constant dollars, factoring out price increases, a company spokeswoman said, without giving further statistical details. The Peoria, Ill.-based company also racked up record fourth-quarter revenues of $5.19 billion, the first time Caterpillar has passed the $5 billion mark and a 16 percent jump from last year's fourth quarter revenue of $4.465 billion. Caterpillar reiterated its forecast that sales in 1998 will be slightly above the record $18.93 billion of 1997 and $16.52 billion in 1996, excluding the acquisition of Perkins Engines, which is expected to be completed in the current quarter. Profit in 1998 is expected to be near the record $1.67 billion, or $4.44 per share, reported for 1997. Caterpillar said industry-wide demand for machines is expected to be slightly down in 1998 due to sharp declines in the Asia-Pacific region. The company said the ultimate resolution of events in Asia depends on actions taken by Asian governments and world monetary authorities. "A significant change in the Asian economic climate or an extension of these events into other areas of the world could impact Caterpillar," the company said in a news release. "Plans are in place to respond to such changes if they develop. The situation is being reviewed carefully on an ongoing basis." The company said recessionary conditions are likely to persist in Japan in 1998, and industry demand is forecast to decline further. But the company also noted that sales from the Asia-Pacific region, which includes Australia, made up only about 25 percent of 1997 sales. A company statement said recessions were likely in Thailand, South Korea and Indonesia, and slower growth was forecast for China, Malaysia and the Philippines. Chief Financial Officer Douglas Oberhelman noted that what he termed as the four most heavily affected Asian countries -- Malaysia, the Philippines, Thailand and Indonesia -- accounted for only about 5 percent of Caterpillar's worldwide sales. "Asia may be down, but the good news is the rest of the world isn't," Oberhelman said in a news conference. Caterpillar saw increased demand for industry products in the United States, Canada, Europe and the former Soviet Union. Analysts said perceptions of Caterpillar's exposure to Asia has unfairly hurt the stock in recent weeks. "People have said, 'This company sells in Asia, we'd better sell the stock.' That's unreasoning," said Alexander Blanton, an analyst at Ingalls & Snyder Llc. "It doesn't take into account what can happen in other areas of the world because of lower interest rates. The U.S. housing market is accelerating. That could be a big source of growth for Caterpillar this year." James McCann, an analyst at Merrill Lynch & Co. Inc., noted the company has positioned itself well in the last several years to adjust to financial conditions in various parts of the world. Caterpillar stock was up $1.69 at $46.69 in late consolidated trading on the New York Stock Exchange. (--Brad Dorfman, Chicago Equities News at 312 408 8787, chicago.equities.newsroom@reuters.com) REUTERS Rtr 21:27 01-21-98 Copyright 1998, Reuters News Service