PEORIA, Ill. Caterpillar Inc. today reported first-quarterprofits soared 33 percent - its best quarter ever - on stronginternational and domestic sales.
For the three months ended March 31, the Peoria-basedearth-moving equipment maker reported net income was $394 million, or$2.08 a share, compared with $296 million, or $1.53 a share, a yearago.
The earnings easily topped Wall Street expectations of $1.70 ashare, according to the average estimate of analysts surveyed by IBESInternational Inc.Sales rose 11 percent to $4.26 billion, with domestic salesrising 15 percent and overseas sales advancing 6 percent. Revenue ayear ago stood at $3.84 billion."Business is good," Caterpillar Chief Executive Donald V. Fitessaid.Caterpillar attributed much of the gains to cost-cuttingefforts. The company also reported its share of industry salesimproved in North America, although it did not say how much.Fites said last week at Caterpillar's annual shareholdersmeeting that the company has added new products, cut costs andinvested in new markets - measures that should keep it healthy duringlean times.Economic problems forced Caterpillar to lay off thousands duringthe mid-1980s. And five years ago, it lost more than $2.44 billion,which was blamed on slumping overseas sales and a $2.22 billioncharge for an accounting rule change. But profits have risensteadily since then, setting a record of nearly $1.4 billion lastyear.
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