World News | Resurgent Demand Drives Sales in Third Quarter

New York, Oct 28 (AP) Construction demand drove third quarter sales higher at Caterpillar as did rising demand from miners and other heavy industry as the global economy emerges from the pandemic.

Revenue climbed 25per cent to USD12.4 billion from USD9.88 billion, and in the construction industry unit, revenue increased to USD5.26 billion, from USD4.06 billion.

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Despite falling just shy of Wall Street projections on revenue, shares of Caterpillar Inc. jumped more than 3per cent before the opening bell Thursday.

Dealers lowered inventories by USD300 million in the third quarter, a considerable improvement from the USD600 million cut a year earlier, the Deerfield, Illinois, company reported.

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Net income was USD1.43 billion, or USD2.60 per share, for the period ended Sept. 30. A year earlier it earned USD668 million, or USD1.22 per share.

Removing certain items, earnings were USD2.66 per share. This easily beat the USD2.26 per share that analysts had projected, according to a survey by Zacks Investment Research.

The construction industry was hit by the spread of COVID-19 like all others, but the pandemic did drive housing, and construction, demand as people sought larger or new places to live. Mining and construction have taken off this year as well as industries begin to elevate production. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)