Caterpillar reports record Q1 profits

First-quarter sales rose 57 percent to $12.9 billion; profit increased 426 percent

Caterpillar Inc., the world's largest manufacturer of heavy equipment, reports that first-quarter profits have grown more than five-fold, largely due to increased demand in the mining and construction sectors. Net income for the quarter was a record $1.23 billion, compared to $233 million for the same period one year ago.

The strong growth in earnings reflects a growing world economy, particularly in the key industries served by Caterpillar. The company's products include earth-moving equipment, engines, electronics and gas turbines used in power generation, and increasing global demand resulted in significantly higher sales.

CEO Doug Oberhelman predicts that annual income for the company will be closer to $54 billion than to the $50 billion originally forecast. This is in spite of lost revenue due to the Japanese earthquake and tsunami which have cost the company hundreds of millions in lost sales.