DEERFIELD, Ill. (AP) – Increased demand for building materials in North America helped push Caterpillar's revenue 5% higher and the company made forecasts.
Sales of new construction work in North America increased by 13% in the first quarter, driven primarily by road construction projects, Caterpillar said Wednesday.
Construction sales fall in Latin America, Asia, Europe, Africa and the Middle East may have investors worried as stocks fell tomorrow trading.
Caterpillar, based in Deerfield, Illinois, reported first quarter net income increased 13% to $ 1.88 billion, or $ 3.25 per share, from 2018 quarter. A US tax reform benefit was worth $ 178 million or 31 cents per share. Earnings adjusted for one-off items came to $ 2.94 per share. Share.
Results beat Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for $ 2.84 earnings per day. Share.
The construction company said total revenue grew to $ 13.47 billion. USD from $ 12.86 billion Analysts expected DKK 13.4 billion. Dollars. Caterpillar said the revenue increase was partially offset by unfavorable currency effects due to the stronger dollar.
Referring to the tax benefit, the company increased its annual view to between $ 12.06 and $ 13.06 per. Stocks from a range of $ 11.75 to $ 12.75 per share. Analysts surveyed by FactSet forecast $ 12.16 per. Share in annual profit.
"The company continues to trust the foundations of its various end markets, and the outlook for 2019 results remains unchanged," Caterpillar said in a statement.
In the morning trading, the Caterpillar shares fell 2.8% to $ 138.03.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks inventory report at CAT at https://www.zacks.com/ap/CAT