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Caterpillar got on profit because of the good financial conditions

The U.S. company Caterpillar, that is the largest manufacturer of agricultural, mining and construction equipment in the world, said it issued a profit in the first quarter thanks to improved economic conditions worldwide. Increased demand for its machines, especially in rapidly developing Asian countries is therefore the responsibility of the company to raise its forecast for the unexpected results for all of 2010, sent Wall Street Journal. The company realized high profits from Cheap Mortgage Rates, which supported the investors and sales of the company. The CEO of Caterpillar said Jim Owen, the company will increase its production to meet growing demand, stating that contracts for certain machines have reached record levels. For all Caterpillar expects 2010 earnings per share between 2.5 and 3.25 dollars and earnings of 38 to 42 billion dollars. In January, management forecast earnings per share of 2.5 U.S. dollars and revenues from 35.6 to 40.5 billion dollars. For the first three months of this year, Caterpillar reported net profit of 233 million dollars, or 36 cents a share, compared with a loss of 112 million dollars, or 19 cents a share, a year ago. After excluding one-off revenues and expenditures, industrial company realized 50 cents earnings per share compared with a positive result of 39 cents per share a year ago. According to the companies offical website the profits are due to cheap mortgages, because of the financial support, which US government gave to business.
Its revenues declined by 11 percent annually to 8.24 billion dollars within the first three months of 2010 This was below the expected market 8.84 billion revenue and earnings per share from 39 cents. The price of the shares of Caterpillar rose more than 100% over the past 12 months and the beginning of today's session of the New York Stock Exchange, they rose 5.4 percent to 72.52 dollars per share.