A fivefold profit surge was recorded by Caterpillar Inc and the company raised its 2011 profit forecast.
This was after bought new heavy equipment for replacing old machines that aged during the economic downturn.
The world’s biggest maker of earth-moving gear said on Friday that strong demand for equipment used in mining helped revenue rise, while demand for construction equipment has been slow to recover — a trend that it said allows it plenty of room to grow sales and profit in the coming years.
It raised its full-year profit forecast to a range of $6.25 to $6.75, a range that at its midpoint is 24 cents above Wall Street’s prior forecast and suggests growth of about 57 percent from last year.
“If you really look at what’s happening in the United States, it’s a very slow recovery from very low numbers,” said Chief Executive Doug Oberhelman on a conference call with analysts. “When construction activity rebounds in the developed world, call it the United States and Western Europe, we’re going to be ready.”
The company reported first-quarter profit of $1.23 billion, or $1.84 per share, compared with $233 million, or 36 cents per share, a year earlier.
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