By Michael Calia
Caterpillar Inc. said its first-quarter profit rose 4.8% on
mostly flat sales as the maker of construction equipment continues
to deal with a slowdown in its mining-equipment business.
Caterpillar shares, up 20% over the past three months, rose 3.8%
in premarket trading as results exceeded analysts'
expectations.
The Peoria, Ill.-based company boosted its full-year earnings
guidance by 25 cents to $6.10 a share, although its sales outlook
was unchanged.
"The change in our profit outlook is a result of our very solid
performance in the first quarter, while also recognizing the
uncertainty we are facing in a number of areas of our business and
the continued risk that geopolitical events could negatively impact
global GDP growth, " Chairman and Chief Executive Doug Oberhelman
said.
Caterpillar had indicated weak sales in a regulatory filing
Wednesday. Machinery sales fell 12% during the first three months
of the year from a year earlier, the company reported, with
declines of 20% or higher in most of its markets. North American
sales, however, rose 6% in the period.
In response to slowing sales, Caterpillar has cut costs and has
closed or announced plans to close plants in the U.S. and abroad.
The company's profit fell 33% last year, and Mr. Oberhelman's total
compensation took a similar hit, while sales fell 16%.
Overall, for the first quarter, Caterpillar posted a profit of
$922 million, or $1.44 a share, up from $880 million, or $1.31 a
share, in the prior-year period. Excluding items like restructuring
costs, the company's per-share earnings increased to $1.61 from
$1.32.
Revenue rose slightly to $13.24 billion from $13.21 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.24 and revenue of $13.17 billion.
Operating costs fell 1.2% to $11.84 billion in the first
quarter.
Write to Michael Calia at michael.calia@wsj.com
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