Caterpillar Earnings Drop 51% in Quarter

Caterpillar Inc. said low sales of heavy machinery and engines contributed to a 51% decline in first-quarter earnings.

Net earnings were $80 million, or 23 cents per share, missing estimates. Sales fell 8.3% to $4.41 billion.

Caterpillar blamed price competition and said the slow economy and warmer-than-normal temperatures in recent months caused less capital spending and excess electrical power. Full-year orders will be about the same to slightly higher from orders last year, the company said.

Shares of Peoria, Ill.-based Caterpillar fell 2.3%, or $1.34 a share, to $56.65 on the NYSE.