Shares of Caterpillar Inc fell 3.2 percent to $29.51 in premarket trade on Tuesday after the heavy equipment maker posted its quarterly results.

Caterpillar posted first-quarter earnings per share of $0.39 excluding items.

Other highlights:

* Q1 loss per share $0.19

* Sees FY 2009 earnings per share about $1.25 excluding items

* Q1 revenue fell 22 percent to $9.23 billion

* Sees 2009 sales and revenues to be in a range of plus or

minus 10 percent around a midpoint of $35 billion *

* Says does not anticipate need to issue additional term debt

during the remainder of the year

* Says redundancy costs are expected to be about $0.75 per

share for 2009

* Says expect to lower inventory by about $3 billion in 2009

* Says decided to hold more cash than usual

* Says reduced inventory by $789 million in the first quarter

* Says expects to be profitable in 2009

* Sees world economy declining about 1.3 percent and remaining

in recession for most of the year

* Says economic activity has dropped over the past six months

* Says rate of decline seems to be moderating, world economic

output is likely to fall further

* Sees significant reduction in capital expenditures for 2009

* Suspension of Caterpillar stock repurchases

* Says significant reductions in total compensation for

executives/senior managers

* Says view includes board ok to make voluntary contributions

of about $650 million to U.S. pension plans

Caterpillar