Caterpillar ( CAT) posted a mixed fourth quarter but guided higher on sales for 2007. Shares rose 2% in early trading.

The Peoria, Ill., tractor maker made $882 million, or $1.32 a share, up from the year-ago $846 million, or $1.20 a share. Sales rose $11 billion from the year-ago $9.66 billion.

Analysts were looking for a profit of $1.34 a share on revenue of $10.5 billion.

In 2007, the company expects to make $5.20 to $5.70 a share on revenue of $41.5 billion to $43.6 billion. Analysts surveyed by Thomson Financial were looking for a profit of $5.56 a share on revenue of $41 billion.

"Despite a sharp decline in two key North American industries -- on-highway truck engines and U.S. housing -- and an expected reduction in dealer inventories, we are projecting another record year in 2007," CEO Jim Owens said. "We expect to improve profit per share at a higher rate than sales and revenues, and that means a key focus in 2007 will be cost management."

Shares rose $1.37 to $61.

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