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Updated: 11:05 a.m. Monday, April 26, 2010 | Posted: 11:04 a.m. Monday, April 26, 2010
Staff Report
PEORIA, Ill. — Caterpillar Inc. reported a first-quarter profit Monday, April 26, of 36 cents per share and also raised its sales and profit outlook for the year.
Caterpillar Logistics, a subsidiary of the heavy equipment manufacturer, has announced plans to open a parts-distribution center in Clayton, anticipated to employ up to 600 people.
Excluding certain costs, Caterpillar said it earned $233 million, or 36 cents per share, for the quarter. A year ago, the company lost $112 million, or 19 cents per share.
Excluding a $90 million tax charge related to the recently passed federal health care bill, the company said it earned 50 cents per share.
However, sales and revenue for the period fell to $8.2 billion, compared with $9.2 billion a year ago. Despite a dip in revenue, the company grew its profits by cutting manufacturing costs, executives said.
Chairman and chief executive Jim Owens said the economy is getting better, particularly in the developing economies around the globe. Orders have increased significantly, and the company is expanding its production capacity, Owens said.
For the year, the company said it anticipates sales of between $38 billion and $42 billion and profits of between $2.50 per share and $3.25 per share.
“The main driver behind our improved outlook is robust growth in Asia/Pacific and Latin America and continued improvement in mining and energy globally,” Owens said.
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