Peoria, Ill.-based Caterpillar Inc. reported a drop...

Peoria, Ill.-based Caterpillar Inc. reported a drop in profit of $122 million for 1986, compared to 1985, despite a sales rise of $596 million. Pretax profit for the year was reduced $112 million by non-recurring charges related to plans for additional consolidations of manufacturing space. These actions are a part of the firm’s long-term plan to reduce costs and improve efficiency, the company said.