Caterpillar Records Profit Surge Thanks to Energy and Transportation Sector

Thanks to strong demand from the energy and transportation sectors, US construction equipment manufacturer Caterpillar reported a significant increase in sales and profits in the last quarter of the year. With a three percent increase in revenue to 17.1 billion dollars, the company was able to benefit from higher prices and advantageous currency effects. However, the revenue missed analysts' expectations, who had forecasted even higher returns. A particularly impressive leap is evident in the adjusted earnings per share, which rose from 3.86 dollars in the same period of the previous year to 5.23 dollars, thus exceeding analysts' estimates. The construction equipment giant's net profit nearly doubled from the previous year to nearly 2.7 billion dollars. These strong figures led to a pre-market increase of over four percent in Caterpillar's share price. Caterpillar is particularly known for its construction machinery and also reported a sales increase in the strategically important Asian market, although the growth there was only marginal. Particularly, the ongoing aftermath of the real estate crisis in China continues to affect the construction industry. Caterpillar's performance is seen as a barometer for global economic development, as the manufacturer's construction equipment is used in key industries such as construction, mining, and energy.