SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 12, 1999
CATERPILLAR INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-768
(Commission File Number)
37-0602744
(IRS Employer I.D. No.)
100 NE Adams Street, Peoria, Illinois
(Address of principal executive offices)
61629
(Zip Code)
Registrant's telephone number, including area code: (309) 675-1000
Item 5. Other Events
CATERPILLAR COMFORTABLE WITH ANALYSTS' CONSENSUS
FOR 1999, BUT EXPECTS WEAK FIRST QUARTER
Caterpillar Inc. announced today that it expects
first-quarter sales and revenues to be considerably below
fourth-quarter 1998 with profit per share about 50 percent less
than both the first-quarter consensus estimate of $0.84 and
fourth-quarter's profit per share of $0.83.
The most significant factor affecting first-quarter results
compared with the fourth quarter 1998 will be lower machine sales
volume, as well as engine sales volume which is normally higher
in the fourth quarter. The lower sales volume is due to
depressed demand from agriculture, mining, and oil and gas
customers and to economic conditions in Latin America, especially
Brazil. While demand in the U.S. is strong, the competitive
pricing environment continues.
As a result of these factors, the company is implementing
actions to reduce costs. These include selected production
schedule cuts, employment reductions and/or temporary plant
shutdowns at facilities in the United States, Latin America and
Europe. Other actions include reducing inventory, SG&A and R&D.
The company expects to benefit from the actions being taken
and from a stronger second half 1999 compared to the first half.
The company's current outlook for 1999 is for sales and revenues
to be slightly below 1998's record level. Profit per share is
expected to be 10 percent to 15 percent lower than 1998 primarily
because of the sales volume decrease, an adverse product mix and
the continuing competitive pricing environment.
* * *
The information above is forward looking and involves risks
and uncertainties that could significantly affect expected
results. A discussion of these risks and uncertainties is
contained in Form 8-K filed with the Securities & Exchange
Commission on January 20, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
CATERPILLAR INC.
By: /s/ R. Rennie Atterbury III
R. Rennie Atterbury III
Vice President
Date: March 12, 1999
