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But the company maintained its sales outlook for the year and
slightly raised its 2015 earnings per share outlook, helping
lift shares in the Peoria, Illinois-based company more than 4
percent after the announcement.
Caterpillar said the strength of the dollar lowered the cost of
imported goods in the first quarter, especially from Japan, and
could weigh on results through year end. The company also
reported a pre-tax gain of $120 million from the sale of a
third-party logistics business.
The world's largest construction and mining equipment maker said
it expects sales and profit for the remaining three quarters of
the year to be lower than the reporting period just ended.
Caterpillar reported first-quarter net income of $1.11 billion
or $1.81 per share, up 20 percent from $922 million or $1.44 per
share a year earlier. Excluding restructuring costs, earnings
per share totaled $1.86.
Analysts had expected earnings per share for the quarter of
$1.35, according to Thomson Reuters I/B/E/S.
The profit beat came despite a 4-percent decline in sales to
$12.7 billion from $13.24 billion a year earlier. That also beat
analyst estimates of $12.38 billion.
Sales in Caterpillar's energy and transportation business were
up slightly, but the company said it did not expect that to
continue amid low oil prices.
The company said it expects global gross domestic product growth
to hit 2.7 percent in 2015, slightly higher than the 2.6 percent
growth in 2014.
But it said "significant risks and uncertainties remain that
could temper growth in 2015." These include political conflicts
and social unrest in the Middle East, Africa and the former
Soviet Union. Slower growth in China also poses a risk and the
company said "the ongoing uncertainty around the direction and
timing of U.S. fiscal and monetary policy actions may temper
business confidence."
"We continue to face headwinds and uncertainty in 2015, and our
outlook for the year reflects that," chief executive officer
Doug Oberhelman said in a statement. "We expect sales and profit
in each of the remaining three quarters of 2015 to be lower than
the first quarter."
Caterpillar maintained its sales outlook of $50 billion for 2015
and said it expected earnings per share of $4.70, up from its
previous forecast of $4.60.
In premarket trading Caterpillar shares were up 4.2 percent at
$88.48.
(Editing by Alden Bentley)
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