Caterpillar Inc. (NYSE: CAT) who produces heavy industrial equipment reported last Friday the company’s record first-quarter sales and profit. The Peoria, Illinois-based company had seen a 13% rise this past March in its net income.  As well, the company’s overall business is doing very well abroad, despite rising material costs and currency issues with the ever so weak dollar.  The company today has seen an increase around 6% among its share value, which nowadays is a rare feat in the US market.
 
However, as Caterpillar, Inc. is doing very well for itself outside of the US, it has seen a slight trim in both it US and global forecast.  Caterpillar is still bulldozing through the rubble as Caterpillar’s Chief Executive Jim Owens wrote that there is a "robust demand for products used in the global mining and energy industries and for machines used by our customers to build infrastructure, particularly in emerging markets."

"Even though North America, our largest geographic market, is depressed, we are investing for growth," Owens said, adding that the company is "significantly" increasing capital expenditures.  The company, however, has trimmed its forecast for global economic growth to below 3% for 2008.
 
Caterpillar is playing in the sandboxes of Russia, China, and India to benefit their long-term strategies.  Despite the company did see a 3% rise in machinery and engine sales in North America in the first quarter, Caterpillar’s European revenues climbed 30% and Asian business was 37% higher.  Sales outside of North America accounted for 58% of total revenue, versus 53% of the total a year ago.

The Illinois-based group reported net income of $922 million, or $1.45 a share, up from $816 million, or $1.23 a share, a year earlier. Net sales rose 18% to $11.8 billion. The latest mean estimates of analysts polled by Thomson Financial were for earnings of $1.33 a share on revenue of $10.77 billion.  Currently, the company’s shares are trading just under 8% and trading at $84.80, nearing its 52-week high of $87.

Caterpillar still foresees its earnings for 2008 to grow 5% to 15% on revenue increasing 5% to 10%. It lowered its outlook for North America sales, but the company strongly believes that the demands and business abroad are going to hold the company above water, as the rest of the US economy seems to have slowed immensely due to construction zones.

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