Caterpillar 1Q profit falls 3 percent |
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Fri, 20 Apr 2007 13:36
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PEORIA, Ill. _ (AP) - Caterpillar Inc., one of the world's largest construction equipment makers, said Friday its first-quarter profit fell 3 percent, as strength in the company's international business could not completely overcome major headwinds in North America.Earnings decreased to $816 million from $840 million. Earnings per share increased, however, to $1.23 per share from $1.20, reflecting a reduction in shares outstanding of about 34 million more due to buybacks. The results for the latest quarter included a gain of $46 million related to the sale of a security.Analysts polled by Thomson Financial forecast a profit of $1.09 per share. Thomson estimates usually exclude special items.Revenue grew 7 percent to $10.1 billion from $9.4 billion a year ago, driven by strong international business, as was much strong than expected by Wall Street. Analysts forecast revenue of $8.94 billion.The company said its revenue gain came from greater sales volumes outside of the U.S., contributions from Progress Rail, which was acquired in June, and higher prices for products and services.Sales at its core North America unit, however, fell by $996 million. The company cited a plan to reduce inventories at dealers, a sharp decline in demand for on-highway truck engines and weak construction activity, particularly in the housing market.Shares of Caterpillar rose $3.78, or 5.5 percent, to $72.40 in premarket trading, having closed Thursday at $68.62 on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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