Caterpillar to invest in future markets

LAS VEGAS, March 12 (UPI) -- Caterpillar Inc. Chairman Jim Owens said Wednesday the company will invest in production capacity in 2008, banking on growth in emerging economies.

Owens said countries like China, India, Russia and Vietnam are poised to expand and would provide Peoria, Ill.-based Caterpillar with opportunities.

"Most emerging-market economies are in good shape, with relatively low inflation and interest rates and strong balance sheets," Owens said in Las Vegas at CONEXP/Con-AGG 2008, an industry convention.

"Over the next decade, that should translate into increased sales of Caterpillar machinery, engines and related services," he said.

To prepare itself for growth in these markets, the company would increase capital expenditures from $1.7 billion in 2007 to $2.3 billion in 2008, the Peoria Journal Star reported.

Owens noted shareholders might be disappointed with profit margins in 2008, but predicted earnings per share to reach $8 to $10 by 2010, the report said.