Strong Caterpillar earnings lead Dow higher (AP)

NEW YORK - Caterpillar led the Dow Jones industrial average higher Friday after the company reported a gain huge first quarter of the revenues.

Large manufacturer most of construction and mining equipment increased 2.5% after that its earnings more than quintupled. The company also raised sales and profits forecast for the year.

The Dow Jones index added 4 percent in April, its best month since December.

The Dow Jones index increased 47.23 points Friday, or 0.4%, to close at 12,810.54. Caterpillar represents 21 points of these gains. The company has exploded over the past year by booming demand for its products.

"The industrial sector and the manufacturing of this country are much higher that many investors have seen," said Rob Lutts, President and CEO of Cabot money management investment.

The standard & poor 500 index increased 3.13 points, or 0.2 per cent, to close at 1,363.61. The index gained 2.8% in April.

Added Nasdaq composite 1.01 point to 2,873.54. It increased by 3.3% for the month.

The Nasdaq and the S & P 500 had their best month since February.

Of the main index stock markets pushed strong corporate profits 2011 skyrocketed in the last week of the month. On Wednesday, the & S P 500 doubled, rising from its 12-year low reached on March 9, 2009 after the financial crisis. The Nasdaq is at its highest level since 2000.

The Russell 2000 small stocks index also reached a record on Wednesday after the Fed is committed to maintain interest rates in the short term at record lows. That motivated investors continue to buy risky as small stock investments.

The Russell exploded 77 per cent over the past two years. Small company stocks tend to rise more quickly that the whole of the market as the economy emerges from recession. Investors also see them as targets occasions likely for large companies which are full of cash. The Russell rose 3.74 points, or 0.4%, to 865.29 Friday.

Goodyear Tire & Rubber Co. has increased by 12%, most of any company in the standard & poor 500 index, after he set a turnover, recorded and reversed its loss from the first quarter of last year.

Coinstar Inc. increased 5% after the owner of Redbox DVD rental kiosks posted an increase of 32% of its net income.

Research In Motion Ltd. has dropped from 14% after the author of the BlackBerry reduced its forecast of sales and revenues because of weak sales of phone.

The dollar dropped to a minimum of three years against an index of six major currencies. It is 7.6% lower this year.

The dollar was sinking against other currencies which have interest rates higher than the low to the United States of the United States interest rates also encourage investors to borrow in dollars to buy investments denominated in foreign currencies, which also grows the lower dollar.

Two stocks rose for all those who have fallen on the New York Stock Exchange. Trading volume was $ 3.7 billion shares.

1 Q of Caterpillar profit rise, boosts forecast (AP)

St. LOUIS - heavy equipment manufacturer Caterpillar Inc. said Friday its profit in the first quarter grew more five times and its financial perspectives for the year as was raised by a growing economic recovery boosted demand for its construction and mining equipment.

The results blew past analysts expectations and its shares rose $ 2.72, or 2.4%, $115.36 in exchange for midi.

Caterpillar earnings are a bellwether for the global economy, he sells the sort of type of the expensive, heavy machinery used for the construction, mining and forestry.

Its profit in the first quarter reflects an industrial sector that is growing once again, with the greater part of its turnover from the sale of big machines. When the recession hit in 2007, mining companies and construction cut spending on heavy machinery first, Mike DeWalt, Director of Caterpillar of the analysts said investors Friday.

For more than two years, companies retained their investment. But they appear now to have no choice but to replace aging machines, boosting sales of Caterpillar, DeWalt said. This means that expenses will likely continue as companies to replace more vehicles and even expand on demand.

"Let us be clear: this is not a kind of bubble,"DeWalt said."".We believe (are) basically buying enough to keep their fleets continue to deteriorate. ?

The Peoria, Illinois, company said its net income reached a record of 1.23 billion dollars, or $ 1.84 per share for the quarter ended March 31. That is $ 233 million, or 36 cents per share, a year ago. Revenues increased by 57% 12.95 billion $ 8.24 billion a year ago.

Analysts had expected earnings of $1.30 per share on revenue of $ 11.43 billion.

Back to machinery and division Caterpillar power systems grew to 12.29 billion $ 7.55 billion during the same period last year.

Based on its sales higher than expected, Caterpillar has relaunched its 2011 Outlook, forecast revenue between $52 and 54 billion and a net profit between $6.25 and $6.75 per share. Revenues over $ 50 billion and net income of about $6 per action already planned. The company said that its projection does not include its recent MWM Holding GmbH or Bucyrus International, Inc. acquisitions, because trade agreements have not yet closed.

Caterpillar, said prospects would have been higher if not for the earthquake and the tsunami in the Japan, including good number of its suppliers damaged. Disruption of supply and delays will likely cost the company 300 million in lost sales and $ 100 million in lost profits.

Still, the underlying economy look good for the increase in the future profits to Caterpillar, said Bill Selesky, an analyst with Argus Research. The increase in global demand, mining, construction and forestry companies should have to buy more equipment.

"You have a multinational company big with a global footprint all around the world demand a greater," said Selesky. "That gives me hope that we are dealing with a growing economic recovery that we hope is sustainable and which will improve over time.".

Profit surges Caterpillar as demand recovers (Reuters)

BOSTON (Reuters) - Caterpillar Inc. has registered higher profit five times and raised profit by 2011 prediction as customers bought new heavy equipment to replace the older older computers during the economic recession.

Large manufacturer has the most earthmoving gear, said Friday that the strong demand for equipment used in the rising power mining helped income, while the demand for construction equipment has been slower to recover - a trend it said leaves plenty of room to increase sales and profits in the years to come.

It raised its profit for the year of the forecast to a range of 6.25 $ to $ 6.75, a range which, in its environment is 24 cents above earlier forecasts of Wall Street and suggests growth of about 57 percent of last year.

"If you really look at what happens to the United States, is a very slow recovery of very low numbers," said Chief Executive Doug Oberhelman on a conference call with analysts. "When the activity of construction of rebounds in the developed world, call the United States and the Western Europe, we will be ready."

Yet, as the company beat the expectations of the first quarter profit analysts by 53 cents per share, the forecast of the year suggests that the company will not continue its torrid pace through the rest of the yearsaid analyst Edward Jones Jeff Windau.

"They had a strong recovery, but now the comparable properties get a little tougher, Windau said." "" I expect that growth will moderate in the rest of the 2011. ?

ROLE CRESCENT OF COMMODITIES

The report comes a day after government figures showed that economic growth in the United States slowed considerably in the first quarter, with higher food and gasoline prices beginning to weigh on consumers, expenditures and raising concerns about inflation.

The inflation of the products is not necessarily bad news for companies including Caterpillar and General Electric Co which make the equipment used in the production of energy and raw material extraction. The growing demand and the prices of metals, from coal and oil are stimulates demand for Caterpillar heavy equipment - sales to minors and other resource companies has almost doubled in the course of the quarter, exceeding its construction equipment business.

"The product of strong base for us markets are a net positive based on the application, they lead to our mining business," compensate for the pressure of the margin of the higher costs of raw materials, said Chief Financial Officer Ed Rapp in an interview.

Exhibition of Caterpillar of goods such as coal and metals will only increase when it closes on its acquisition of 7.6 billion in mining equipment manufacturer Bucyrus International in the middle of this year.

Better results than expected obtain the company closer to its objective to close this agreement without issuing additional shares, said Rapp. When the takeover was announced, Caterpillar said it may be necessary to issue up to 2 billion dollars in shares to cover the purchase.

PROFIT TOPS STREET VIEW

Caterpillar reported first-quarter profit of 1.23 billion dollars, or $ 1.84 per share, compared to $ 233 million, or 36 cents per share, a year earlier. Analysts expected profit of $1.31 per share, according to Thomson Reuters I/B/E s.

Income grew by 57.2% 12.95 billion, above the expectations of 11.69 billion.

"This is a very large number on huge volume, which is the simplest way that he described," said research analyst Longbow Eli Lustgarten. He said income came in more than 1 billion dollars above forecasts.

Caterpillar joins a string of strong earnings reports from industry ranging from 3 M Co to Komatsu Ltd..

Its shares rose by 2.6% to $115.58 on the New York Stock Exchange. They earlier hit a high life expectancy of $116.25. As of the close of Thursday, they had increased 63 percent last year, more than four times the pace of the rise in the Dow Jones industrial average, which is a component Caterpillar.

Caterpillar, said that after the earthquake in the Japan in March would reduce its annual results, pulling down income by approximately $ 300 million and by $ 100 million operating profit.