Caterpillar says it will raise prices up to 2 percentBy AP
Thursday, September 30, 2010
Caterpillar to raise prices up to 2 percent
DALLAS — Heavy-equipment maker Caterpillar says it will raise prices up to 2 percent worldwide starting in January.
The company said Thursday the price increase was due to “industry factors” and the economy.
Caterpillar says price hikes will vary by product and location. It plans to give dealers the details soon.
The company has already announced its first emissions-related price increases of 2 percent to 6 percent. Those also take effect in January.
Caterpillar Inc., based in Peoria, Ill., makes machinery for farming, construction, mining and other industries and is often seen as a bellwether for health of the industrial sector.
The company was hit hard by the recession, as businesses cut back on spending, and it cut more than 30,000 full-time and contract jobs.
Recently, there have been signs of recovery. Caterpillar reported in July that second-quarter net income jumped 91 percent over the same period last year, as sales grew among customers in many industries.
The recovery has been strongest in developing countries such as China and Brazil. Sales in Asia grew 62 percent in the second quarter, trumping a 43 percent increase in North America, the company’s biggest market.
The company has said it was raising production to keep up with new orders, and it has hired back some employees — it had 97,500 workers at the end of June.
Caterpillar shares fell $1.58, or 2 percent, to $78.41 in late-morning trading.