DOW JONES NEWSWIRES
Caterpillar Inc. (CAT) boosted its quarterly dividend 4.5%,
joining a long list of companies that have raised payouts to
shareholders in recent months amid still-high cash reserves.
Caterpillar's latest first-quarter profit soared to a
record-setting level as sales surged across all types of machinery
and power systems and margins grew. The world's largest
construction equipment manufacturer by sales has continued to
report improving financial performance amid ongoing evidence of
recovery in the sector.
The 2-cent hike to 46 cents a share will cost the company about
$51.6 million a year.
Chairman and Chief Executive Doug Oberhelman said the increase
demonstrated the construction-equipment maker's commitment to
raising value for shareholders.
"In addition to increasing the dividend, our focus on cash flow
and the strength of our financial position enabled us to finance
the Bucyrus acquisition without the need for equity and is enabling
substantial investment to prepare Caterpillar for the developing
improvement in the business cycle and to achieve our long-term
financial goals," Oberhelman said, referring to the company's $7.6
billion takeover of Bucyrus International Inc. (BUCY).
Shares of Caterpillar, which also affirmed its guidance for the
year, were recently off 0.7% to $99.19 midday Wednesday. The stock
has climbed 75% over the past 12 months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com