Caterpillar’s 1Q Income Improves

Heavy equipment and diesel engine manufacturer Caterpillar Inc.’s first-quarter profit rose 13% to $922 million, or $1.45 a share, from $816 million, or $1.23, in the previous first quarter.

Sales increased 18% to $11.8 billion, Caterpillar said in a statement Friday.

Sales for on-highway truck applications rose 18%, compared with a very weak first quarter in 2007, Caterpillar said.

“The industry and our shipments remain below historic norms due to the slowing U.S. economy that has resulted in a reduction in freight tonnage,” the company said in a statement.

Driven by the continued strength outside North America, machinery sales rose 16%, engine sales gained 22% and financial products revenue rose 18% from a year ago, Caterpillar said.

The company has been boosting its operations in emerging markets in Asia, India and Eastern Europe, where construction and mining are driving machinery sales, as North American housing markets slump, Bloomberg reported.