Overall, sales growth from construction and energy & transportation segments enabled CAT to offset the decline in its mining segment sales. Cost Reduction Measures Expand Margins & Profits Additionally, even as higher construction equipment and engine sales balanced lower mining equipment sales, CAT's first quarter profits rose on higher margins driven by cost reduction activities. The company has been undertaking large scale restructuring to lower its operating costs. It is consolidating plants to ensure greater sharing of common resources as well as reducing headcount to save on salaries. During the first quarter, CAT reduced its workforce – both full time and flexible – by approximately 1,100 employees. Compared to the end of last year's first quarter, the company's workforce had 9,250 fewer employees at the end of this year's first quarter.