Slowing economy hits Caterpillar profits

Caterpillar, the world's largest maker of construction equipment, said today its first-quarter earnings fell 37 per cent as the…

Caterpillar, the world's largest maker of construction equipment, said today its first-quarter earnings fell 37 per cent as the US economy slowed, but stood by its earlier forecast of full-year 2001 earnings.

The Illinois-based company said it earned $162 million, or 47 cents a share in the quarter ended on March 31st, compared with $258 million, or 73 cents, a year earlier. Sales fell 2 per cent to $4.81 billion from $4.92 billion.

Caterpillar had been expected to earn 32 to 65 cents, with an average estimate of 48 cents, according to a survey by Thomson Financial/First Call.