Caterpillar’s Earnings Dip; Revenue Gains
Heavy equipment and diesel engine manufacturer Caterpillar Inc. said Friday that its first-quarter net income dipped 3% to $816 million, from a record $840 million a year ago.
Earnings per share rose to $1.23 from $1.20, from buybacks that reduced the averaged diluted share count by 34 million compared with last year, Caterpillar said.
Revenue rose 7% to more than $10 billion, though North American unit sales fell by $996 million.
Strong overseas sales nearly offset expected declines in North America that analysts had predicted would cut more deeply into its profit, the Associated Press reported.
Caterpillar also boosted its earnings forecast for the year, helping send its shares up $3.20 per share, to close at $71.82 on the New York Stock Exchange, AP said.
The company raised its 2007 forecast to revenue of $42 billion to $44 billion for the year, up from $41.5 billion last year. Profit per share was forecast at $5.30 to $5.80, up from $5.17 in 2006.
Caterpillar had earlier predicted revenue in a range from $41.5 billion to $43.6 billion, with profit in a range from $5.20 to $5.70 per share, AP reported.
