Caterpillar Inc says 2005 was a year of unprecedented customer demand with full year sales and revenues were up 20 per cent to USD36.339 billion.

"With the surge in customer demand and production, employees and dealers responded in spectacular fashion to help us realise this opportunity," company chairman Jim Owens said.

Owens said he was pleased with Caterpillar employees.
"I'm gratified by what Team Caterpillar has accomplished ... Over the past two years we've more than doubled production at several manufacturing facilities, particularly those manufacturing large machines. We've done this without additional bricks and mortar and with a focus on managing our period cost structure."

He said the 2005 increase in sales and revenues was a result of USD3.75 billion of higher sales volume, USD1.827 billion of improved price realisation and a USD363 million increase in financial product revenues.

Caterpillar made a profit of USD2.854 billion or USD4.04 a share, up 40 per cent from 2004.

In 2006, Caterpillar expects sales and revenues of about USD40 billion and a profit per share of USD4.65 to USD5.00.

"Most industries we serve are strong and the fundamental economic picture remains positive," Owens said. "Our emphasis is on execution with Six Sigma as we implement our new strategy to achieve 2010 goals, with an even greater focus on improving employee safety, product quality and product availability."

Six Sigma is a business improvement strategy that uses statistical tools to accelerate improvements in processes, products and services, and to reduce manufacturing and administrative costs.