A combination of better sales and lower costs helped construction and off-road equipment giant Caterpillar Inc (NYSE:CAT) race past market forecasts.
“For the first time in more than two years, same quarter sales and revenues increased," said Jim Umpleby, chief executive.
"We're also benefiting from our significant cost reduction and restructuring actions.”
Revenues for the quarter to March rose to US$9.82bn (US$9.46bn), while underlying earnings doubled to US$1.28 per share.
Caterpillar also increased its forecasts for the 2017 calendar year, with revenues now expected in a range of US$38bn to US$41bn and underlying earning US$3.75 per share compared to US$2.90 previously.
Restructuring costs were the only cloud and will come in significantly higher than the prior outlook primarily due to ongoing manufacturing facility consolidations at US$1.25 bn.
Overall, there encouraging signs in the market said Umpleby. Quoting activity had picked up and retail sales to users were positive in machines and Energy & Transportation for the first time in several years.
Shares rose over .7.56% to stand at $104.13.