Caterpillar Off 90% for Quarter

Caterpillar Inc. today reported fourth-quarter earnings of $11 million or 11 cents a share, down 90% from $107 million or $1.05 a share for the same period a year earlier.

For the full year ending Dec. 31, 1990, earnings were $210 million or $2.07 a share, down 58% from $497 million or $4.90 a share for 1989.

The heavy-equipment maker said the decline resulted from higher costs and a 3% decline in physical sales volume. The greatest single factor in cost hikes was inflation, especially health-insurance costs, which rose two to three times faster than the general U.S. inflation rate, the company said.

Full-year revenue was $11.436 billion, up 3% from $11.126 billion in 1989. For the full year, earnings as a percentage of sales and revenue were 1.8%, the company said.

U.S. sales were down 10%, offset by a 56% revenue increase by financial subsidiaries and a 5% increase in overseas sales.