Caterpillar Posts 44% Earnings Growth for Q3, Stock Soars

October 25 00:00 2011

New York, October 25 (RainbowNewsLine.com) – Caterpillar (NYSE: CAT), the multinational maker of heavy equipments, has reported 44% higher earnings for the third quarter. It earned $1.71 a share, against the estimates of $1.54. Surging exports of its machinery has sent its shares soaring. Total quarterly revenue rose 4 percent to $668 million. After-tax profit increased by 27 percent from the same period in 2010 and stood at $93 million.

The rise in profit was attributed to a $28 million benefit from higher-earning assets and from other net revenue items. Caterpillar is raising its outlook for the full year. In premarket trading, shares rose more than 4 percent.

Caterpillar is the world’s largest maker of construction and mining equipment and with the bright outlook for the year it has added nearly 5,000 jobs between June and September alone. It earned $1.14 billion, compared with $792 million, or $1.22 per share, in 2010.

The company now expects annual revenue of $58 billion. The previous forecast had been in the range of $56 billion and $58 billion. For the whole year, profit is expected to be $6.75 per share, compared to a previous forecast of between $6.25 and $6.75 per share.

Caterpillar also expects sales to improve 10 percent to 20 percent in 2012.

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