Shares in the largest heavy machinery manufacturer in the world, Caterpillar Inc., climbed up on April 25 as the company reported first quarter earnings that exceeded estimates due to an increase in demand and sales.
Specifically, Caterpillar’s stock rose by 7.49% to $104 in New York’s premarket trading. By maintaining such gains, the company was able to add over 40 points to its Dow Jones Industrial Average for the said day.
According to Caterpillar CEO Jim Umpleby, his company registered an increase in sales in several of its industries—a feat that it has not seen in more than two years. He said:
“Our team delivered outstanding operational performance and, for the first time in more than two years, same quarter sales and revenues increased. We’re also benefiting from our significant cost reduction and restructuring actions, which have improved cash flow and further strengthened an already healthy balance sheet.”
In the first quarter of the year, Caterpillar’s sales and revenues from selling heavy machinery for both the mining and construction sectors reached $9.8 billion, compared with $9.5 billion from the same period last year. With this, it now raised its full-year sales and revenue forecast from $36-39 billion to $38-41 billion.
However, despite the company’s improved sales and revenue outlook for this year, Umpleby noted that they are still seeing a weakness in key markets and potential for volatility in commodity prices, which can affect the company’s sales in the future.