Caterpillar Net Rises on Machinery Sales Overseas

   Date:2007/01/30
Caterpillar Inc., the world's largest maker of earthmoving equipment, said fourth-quarter profit rose 4.3 percent on increased sales in China and India.

Net income climbed to $882 million, or $1.32 a share, from $846 million, or $1.20, a year earlier, the Peoria, Illinois- based company said.

Caterpillar is winning sales in China and India, the two fastest growing economies in the world, with more than 2.3 billion people and booming construction and road building.

Revenue for 2007 will be $41.5 billion to $43.6 billion, the company said. Sales last year rose 14 percent to $41.5 million. Analysts, on average, estimate 2007 sales will be $41 billion.

Caterpillar is a bellwether of the U.S. economy because its sales span industries from mining to oil to construction, making orders dependent on both consumers and corporate spending.

Over the past two years, plants ran at full capacity to meet demand, particularly for mining equipment, as countries such as India and China bought more machines.

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