Caterpillar profit beats forecasts again as sales surge 35pc
Caterpillar trounced forecasts for profit for the seventh straight quarter yesterday as buoyant global demand and the recovery of commodities markets drove a 35pc surge in sales of its construction and mining equipment.
Shares in the world's largest heavy duty equipment maker were up another 2.7pc in premarket trading and have now risen around 80pc in the past year and 160pc in the past two.
The company said it expected an adjusted profit of $8.25 (€6.59) to $9.25 per share for 2018, compared with analysts' average estimate of $8.19, according to Thomson Reuters.
A year ago, Caterpillar was seeking to temper expectations for 2017, forecasting results well below analysts' forecasts.
But it has steadily raised its estimates for both construction and mining sales over the course of the last year as earnings again soared past expectations.
While the bulk of the earnings recovery in 2017 was driven by the construction division, a strengthening global economy along with a rebound in commodities prices have boosted the outlook for its other two divisions - resource industries and energy & transportation. Oil prices have shot up to above $70 a barrel from below $30 two years ago, encouraging new investments in the sector, and boosting demand for Caterpillar's oil and gas mining equipment. (Reuters)