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Caterpillar beats profit estimates, raises forecast

Credit: REUTERS/Michaela Rehle

Caterpillar Inc beat analysts' estimates for first-quarter profit on higher sales of its construction and mining equipment in its biggest market North America.

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April 24 (Reuters) - Caterpillar Inc CAT.N beat analysts' estimates for first-quarter profit on higher sales of its construction and mining equipment in its biggest market North America.

The heavy-duty equipment maker, a bellwether for economic activity whose results often influence global stock market sentiment, also raised its full-year profit forecast as it booked a tax gain in the first quarter stemming from President Donald Trump's tax reforms.

The company's shares were up 1 percent in premarket trading. The latest quarter results come off a disappointing showing in the fourth quarter, which was hit by a sharp slowdown in China.

Sales in North America rose 7 percent, driven by a 13 percent rise in sales of construction equipment.

The company reported an adjusted profit of $2.94 per share in the first quarter, compared with $2.82 a share, last year. Analysts on average had expected earnings of $2.85 a share.

Total sales and revenue rose about 5 percent to $13.5 billion.

The company said it now expects 2019 profit of $12.06 per share to $13.06 per share, compared with $11.75 to $12.75 per share forecast earlier.

(Reporting by Rachit Vats in Bengaluru Editing by Saumyadeb Chakrabarty)

((Rachit.Vats@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 3798; Reuters Messaging: rachit.vats.thomsonreuters.com@reuters.net))

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