Caterpillar’s first sales increase in five years fueled by China
Shares of US construction equipment maker surged Tuesday on news
Strong demand, driven by construction in China, has led US machinery maker Caterpillar to forecast its first annual sales increase in five years.
“While a number of our end markets remain challenged, construction in China and gas compression in North America were highlights in the quarter,” Caterpillar Chief Executive Officer Jim Umpleby was quoted by Bloomberg as saying in a statement Tuesday. “Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions.”
Shares rose 4.8% before the start of trading in New York, after already having climbed about 16% in the second quarter, the second best performance of Dow Jones stocks.