Caterpillar said it had "record" profit for the first quarter of $1.22 billion, an increase of 426 percent from $233 million over the same period a year ago.

Sales climbed 57 percent to $12.95 billion.

Earnings per share hit $1.84 -- "an all-time quarterly record and a 411-percent improvement" from 36 cents in the first quarter of 2010, the company said in a statement.

The EPS figure easily topped the average analyst forecast of $1.31.

Caterpillar shares surged 2.3 percent to $115.23 in morning New York trade.

"We expect that the pace of world economic growth will support continued recovery in the key industries we serve," chairman and chief executive Doug Oberhelman said in the statement.

He said he was "very pleased" with the stellar first-quarter results.

"Demand continued to improve, we increased production, cost control was excellent, and our operating profit margin improved," he said.

Caterpillar, considered a bellwether on the global economy, raised its full-year 2011 forecast, predicting a record-breaking year.

Full-year sales for the world's biggest manufacturer of bulldozers, excavators, wheel loaders and other construction machinery were estimated in a range of $52 to $54 billion and profit in a range of $6.25-6.75 per share.

The previous forecast was for sales to top $50 billion and for profit to be near $6.00 per share.

The revised outlook "reflects higher expected sales and revenues and higher profit per share than our previous record year of 2008, when sales and revenues were $51.3 billion and profit per share was $5.66," it said.

Oberhelman said the continuing improvement in the outlook supports the firm's strategy to "aggressively invest" in additional capacity for key products.

"We expect capital expenditures of about $3 billion in 2011 with more than half in the United States," he added.

The Peoria, Illinois-based company said its projections do not include the acquisitions of Motoren-Werke Mannheim Holding, a German engine maker, and US mining equipment supplier Bucyrus International, "because they have not yet closed."

Caterpillar, in announcing a $7.6 billion all-cash purchase of Bucyrus in November, said it was positioning itself to capitalize on the robust outlook for commodities, particularly driven by rapid growth in emerging markets.

Oberhelman noted the company was "saddened" by the devastating earthquake and tsunami that struck Japan in March that left nearly 26,000 people killed or missing.

The company said its facilities were not damaged by the earthquake and tsunami, but many of its suppliers in Japan were impacted. The disruptions were projected to have a negative impact on 2011 results of $300 million in sales and $100 million in operating costs.

"I want to recognize and thank our employees in Japan, along with Caterpillar employees around the world, our suppliers and dealers as they have worked tirelessly to minimize the impact on our operations from the disaster," he added.

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