Caterpillar reported a surprising 44 percent increase in quarterly profit and forecast strong demand through next year in a sign of optimism for the global economy.þþThe company said on Monday that it expected full-year 2011 profit and revenue to set records as a result of surging sales for mining equipment and construction machinery in most markets around the world.þþCaterpillar executives said they expected that momentum to carry into next year, with sales rising up to 20 percent above the $58 billion in sales it expects to have this year.þþ“We’re having a great year in 2011, and 2012 is shaping up to be better,” said Douglas R. Oberhelman, Caterpillar’s chief executive.þþCaterpillar said it had hired nearly 5,000 people in the quarter.þþThe bullish news from Caterpillar came after strong forecasts from General Electric and United Technologies. Caterpillar’s stock rose $4.38, or 5 percent, to $91.77.þþCaterpillar said it ended the third quarter in one of the healthiest positions in its recent history. Backlogged orders stood at record levels and higher commodity prices helped its growing mining business, which performed well in markets around the world.þþCaterpillar reported third-quarter net income of $1.14 billion, or $1.71 a share, compared with $792 million, or $1.22 a share, a year before.þþAnalysts on average expected Caterpillar to earn $1.54 a share in the third quarter.þþSales rose 41 percent to $15.7 billion, a record, according to the company. Caterpillar earned $1.93 a share on $14.58 billion in sales excluding the impact of the acquisition of the Bucyrus mining business earlier this year.þþIt expects annual sales of $58 billion, including the impact of its acquisition of Bucyrus, in 2011. Its previous forecast was a range of $56 billion to $58 billion.þþProfit is expected to be $6.75 a share for the year, compared with a previous forecast of $6.25 to $6.75.
Source: NY Times
