-Caterpillar Inc reported a quarterly profit on Thursday that beat analysts’ estimates as construction demand and higher commodity prices boosted sales of heavy equipment across the company’s businesses.
The industrial bellwether’s shares, which have risen 7.8% this year, were up 3.5% at $202 in premarket trading.
Caterpillar (NYSE:)’s sales have surged for three consecutive quarters as construction demand worldwide has been propped up by an unprecedented level of public spending.
Rising oil and commodity prices have also boosted the company’s sales, with customers ordering more equipment to ramp up production.
Sales from Caterpillar’s construction industries business, its largest unit, rose 30% while sales at its energy & transportation unit jumped 22%.
However, global supply chain disruptions triggered by the pandemic and inflationary cost pressures have hit the company’s earnings in the recent past, with Caterpillar raising equipment prices to offset the impact.
The company’s adjusted profit rose to $2.66 per share in the third quarter ended Sept. 30, beating analysts’ estimates of $2.20, according to Refinitiv IBES data.
Total sales and revenue rose 25.4% to about $12.40 billion, compared with estimates of $12.48 billion.
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