Caterpillar, Incorporated 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. Revenue fell 17 percent to $13.21 billion. Its profit and revenue were both smaller than expected by analysts. Peoria-based Caterpillar 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 up to $9 per share. CEO Doug Oberhelman says in the first quarter of last year Caterpillar dealers added $875 million in inventory. So far this year they have cut that same inventory by $700 million. Oberhelman says the company is concerned about economic growth. Caterpillar's new outlook projects a 50% drop for the year in sales of mining equipment and about steady performance in construction equipment and power systems. The company says it plans about a billion dollars in equipment buybacks and repurchases in the second quarter.
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