OMAHA, Nebraska (AP) — Caterpillar says the global economy is clearly improving, so it's planning to increase production of its mining equipment after reporting a strong first-quarter profit yesterday.

The Peoria, Illinois company offered an encouraging view of the economy and predicted worldwide growth of about 3.5 percent. But Caterpillar has still only hired back about 2,000 people since eliminating 19,000 full-time jobs and about 18,000 contract and part-time workers last year.

Caterpillar chairman and CEO Jim Owens said industry activity and orders are significantly higher than last year and are at record levels in some areas. As a result, Caterpillar is ramping up production to meet increasing demand.

"Economic conditions are definitely improving, particularly in the world's developing economies," he said.