Caterpillar jumps on strong demand in construction, mining and energy sectors
New York — Industrial machinery manufacturer Caterpillar reported a large jump in first-quarter earnings and significantly upgraded its full-year forecast on Tuesday, citing strong demand across the construction, mining and energy sectors. Caterpillar reported profits of $1.7bn for the quarter ending March 31, dwarfing the $192m in the year-ago period. Revenues surged 30.9% to $12.9bn. In the construction sector, Caterpillar pointed to "broad-based growth in all regions" in 2018, with North American and China especially strong. The mining industry, which had been in a bruising slump a couple of years ago, has picked up considerably, leading to higher capital spending by companies. The company also predicted sales gains in oil and gas due, in part, to strong demand for well-servicing and gas compression applications in North America. Caterpillar alluded to some constraints from spiking demand that can put pressure on suppliers. The company suggested the problem was not severe, saying...
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