Caterpillar 1Q profit shrank; cuts 2013 outlook

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By JOSHUA FREED, Associated Press

MINNEAPOLIS (AP) — Caterpillar says its first-quarter net income shrank and it predicted smaller 2013 sales and profits because its mining business is slowing down.

The company's net income shrank 45 percent to $882 million, or $1.31 per share. Revenue fell 17 percent to $13.21 billion. Its profit and revenue were both smaller than expected by analysts surveyed by FactSet.

Peoria, Ill.-based Caterpillar Inc. makes construction and mining equipment — and sales of mining equipment are slowing down.

Caterpillar says it now expects revenue this year of $57 billion to $61 billion, and a profit of $7 per share. Previously, it had expected revenue of $60 billion to $68 billion, and a profit of $7 to $9 per share.

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