CATERPILLAR <CAT> SEES HIGHER FISCAL 1987 NET
Caterpillar Inc said it expects 1987
full year sales and profits to be "substantially better" than
1986 results, following improved third-quarter performance.
    Third-quarter earnings of the heavy machinery manufacturer
increased to 146 mln dlrs, or 1.47 dlrs a share, from net loss
of 26 mln dlrs, or 26 cts, in the 1986 quarter. Sales rose to
2.25 billion dlrs from 1.82 billion dlrs last year.
    A weaker U.S. dollar strengthened Caterpillar's position
against foreign manufacturers and permitted price increases and
boosted sales, while a cost-cutting program lowered costs
significantly, the company said of third-quarter results.
   
    Continuation of the cost-reduction program, which is to
pare costs by 15 to 20 pct from 1986 to 1990, and a further
anticipated improvement in its price competitiveness are
expected to contribute to higher full year 1987 profits,
Caterpillar said.
    In 1986, the company earned 76 mln dlrs or 77 cents a
share.
 Reuter
