Caterpillar profit surges on global demand for equipment

Caterpillar’s profit trounced forecasts for the seventh straight quarter on Thursday as buoyant global demand from construction, mining and energy industries drove a 35-percent surge in equipment sales.

Caterpillar — long a bellwether for the health of the global economy — said it saw “positive economic indicators across most of the world.” It forecast stronger home and non-residential construction in North America amid growth in other regions, said mining customers are healthier and more willing to invest, and expects higher oil and gas sales this year.

It also said the prices it charges customers are staying ahead of material costs.

The company forecast adjusted profit of $8.25 to $9.25 per share for 2018, above analysts’ average estimate of $8.19, according to Thomson Reuters I/B/E/S.

Shares were up 1.3 percent in early trading and have risen around 80 percent in the past year.