Caterpillar Inc.’s earnings slipped 4% in the...

Caterpillar Inc.’s earnings slipped 4% in the fourth quarter to $163 million despite better sales, but it still managed to earn a record profit for the full year. Even with the dip in quarterly profit, Caterpillar said 1988 profit was a record $616 million, up from $350 million in 1987. The Peoria, Ill.-based heavy-machinery manufacturer said higher costs in the fourth quarter came from a new labor contract, higher employment, factory modernization investment and more expensive materials. During the final quarter, revenue rose 17% to $2.66 billion. For the year, Caterpillar said annual sales rose to $10.43 billion from $8.18 billion in 1987.

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