Caterpillar Inc. (CAT), the world’s largest construction and mining-equipment maker, posted third- quarter net income that topped analysts’ estimates as demand for shovels and drills used to dig up metals rose.
Third-quarter net income rose to $1.14 billion, or $1.71 a share, from $792 million, or $1.22 a share, a year earlier, the Peoria, Illinois-based company said in a statement today. That’s higher than the $1.57-a-share average of 15 analysts’ estimates compiled by Bloomberg. Total revenue increased 41 percent to $15.7 billion from $11.1 billion a year earlier.
The company said full-year profit wil be $6.75 a share and sales will be at the top end of a previously forecast range of $56 billion to $58 billion. Revenue in 2012 will rise 10 to 20 percent, it said.
“We see compelling supply tailwinds in Caterpillar’s mining business,” Jerry Revich, a New York-based analyst for Goldman Sachs Group Inc. who has a “buy” rating on the shares, said in a report on Oct. 17. “Caterpillar is well positioned to outperform in a slow-growth recovery driven by its leading global franchise and returns, solid commodity reinvestment outlook, and reasonable valuation.”
Caterpillar is betting on mining expansion with its $8.8 billion acquisition of Bucyrus International Inc. in July as populations gaining in size and prosperity in emerging markets consume more commodities such as copper. The deal added products such as shovels, drills and roof supports for surface and underground mines.
To contact the editor responsible for this story: Simon Casey at email@example.com.