PEORIA, IL – Caterpillar Inc. reported record 2004 sales and revenues of $30.3 billion and a record profit of $2 billion, up 85 percent from a year ago. Record fourth-quarter sales and revenues reached $8.6 billion and a profit of $551 million, up 58 percent from last year's fourth quarter.

A drive of $6.3 billion of higher machinery and engines volume resulted in an increase of sales and revenues. Higher sales volumes of $1.81 billion, higher price realization of $512 million, and the absence of $153 million of non-conformance penalties (NCPs) from 2003 were the main reasons for the profit increase.

A new six-year labor agreement, which expires on March 1, 2011, was reached by Caterpillar and approximately 9,000 employees, who represented by the United Auto Workers.