Caterpillar Tractor Posts $50-Million Net in Quarter

Caterpillar Tractor reported that it earned $50 million in the second quarter and said the company would continue in the black for the remainder of 1985.

The profit came on quarterly revenue of $1.64 billion and cut Caterpillar’s loss for the first six months of the year to $20 million after a $70-million first-quarter deficit.

The Peoria, Ill.-based construction equipment maker said the profit showed up on the books for April through June despite a dip of $188 million in sales from the second three-month period of a year ago.

But Caterpillar said it benefited from reduced inventories and from its continuing program to slash operating and production costs by 22% by the end of this year.

For the first six months of 1985, Caterpillar lost $20 million on revenue of $3.12 billion, compared to a loss of $75 million on revenue of $3.21 billion in the first half of 1984.

The company said sales suffered during the three months ended June 30 from an overvalued U.S. dollar--cutting into sales in foreign markets--and from continuing pressures from foreign competitors to offer discounted prices on machines and engines.