NEW YORK (AP) - Caterpillar's fourth-quarter net income rose compared with results weighed down by a large impairment charge a year ago. Its performance topped Wall Street's view.
The U.S.-based company's board approved a new $10 billion buyback. Caterpillar also provided a 2014 forecast above analysts' estimates.
Its shares climbed more than 6 percent in premarket trading Monday.
For the period ended Dec. 31, Caterpillar Inc. - which makes mining gear, construction and forestry equipment and large power generators _ earned $1 billion, or $1.54 per share. That compares with $697 million, or $1.04 per share, a year earlier.
The prior-year period included an impairment charge of 87 cents per share, partially offset by a tax settlement of 45 cents per share.
Analysts surveyed by FactSet expected earnings of $1.27 per share for the latest quarter.
Revenue declined 10 percent to $14.4 billion from $16.08 billion, but still beat Wall Street's forecast of $13.41 billion.
Full-year net income dropped to $3.79 billion, or $5.75 per share, from $5.68 billion, or $8.48 per share, in the previous year.
Annual revenue fell 16 percent to $55.66 billion from $65.88 billion, hurt mostly by a sharp decline in sales of new machines for mining.
For 2014, the company anticipates adjusted earnings of $5.85 per share on revenue of about $56 billion. Analysts predict earnings of $5.75 per share on revenue of $55.