Caterpillar smashes Wall Street estimates as North American sales rebound
Bengaluru — On Tuesday, Caterpillar blew past Wall Street’s profit and revenue estimates on surprisingly strong demand for its construction equipment in North America and robust sales in China, pushing its shares up 7% in early trading. The company also raised its full-year forecasts for sales and earnings, expecting revenue in its construction business to surge about 20% and mining business to jump 30%. The construction industry in North America is turning around after years of slow demand, fueled by a steady housing recovery, an improving labour market and higher spending by oil and gas companies. Sales in North America, Caterpillar’s biggest market, jumped 27% in the third quarter ended September 30. Construction revenue from the region rose 31% to $2.17bn and revenue from resources, including mining, rose 28% to $581m. Some analysts, however, questioned if the company could sustain such high growth rates. "Sustainability of the scorching pace of growth Caterpillar set in the lat...
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