Caterpillar Swings to Profit; Where are the Revenues?

Caterpillar swung to a profit in the 2010 first quarter, citing improved economic conditions, particularly in emerging markets. But wait, revenues fell 11%. Remember, the first quarter of 2009 was the depth of the recession, the so-called bottom. Everything has to be better when compared to the first quarter of 2009. Profits are up; but, wait a minute, revenues are down. (I thought we were in a robust macro-economic recovery as the New York Times tell it.) How can that be? Oh, Caterpillar improved its profit due to firing huge numbers of people. Now, I clearly see what has happened. And, it does not portend well for a turn-around in construction equipment sales, nor for a sustainable economic recovery.