Caterpillar smashed Wall Street’s profit and revenue estimates on strong demand for its construction equipment in North America and sales in China, pushing shares up 7% in early trading in a report by Business Day.
The company also raised its full-year forecasts for sales and earnings, expecting revenue in its construction business to grow around 20% and mining business to leap 30%. The construction industry in North America is changing after years of slow demand due to a steady housing recovery, an improving labour market and a higher spending by gas and oil companies.
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