Flat results on the cards despite Caterpillar's good first quarter

While Caterpillar's full-year figures showed a 1% drop in revenues and profit almost flat, first quarter 2003 returns were up by 9% and 61% respectively.

However, speaking at Intermat earlier this month, marketing vice president of Europe Edward Rapp said that with the uncertainties in the business environment he expected full-year results to be flat.

In addition to introducing new construction equipment, Caterpillar used the show to highlight its new ACERT engine, which it described as "the most significant technological development in the company's history".

By using its expertise in electronics, fuel-injection systems and combustion technology, the company has produced an engine that meets EU Stage 3 and Stage 4 emission standards without resorting to exhaust gas recirculation.

By offering this package, Caterpillar hopes to keep the space requirement for its power units smaller than that of its competitors.