Caterpillar boosts outlook, sending shares higher

(MENAFN- AFP) Global machinery giant Caterpillar reported a jump in second-quarter profits Tuesday and lifted its full-year forecast, amid strong construction in China and improving commodity markets.

Net income for the quarter ending June 30 rose 46 percent to $802 million, as revenues climbed 9.6 percent to $11.3 billion.

Caterpillar, which manufacturers industrial equipment, saw its share price rise sharply on the better-than-expected results.

All three of Caterpillar's divisions scored higher revenues, with increased Chinese infrastructure and residential investment boosting construction revenues, and solid investment in natural gas infrastructure in North America lifting sales in its energy business.

"Our team delivered an impressive quarter. As demand increased, we continued to control costs and generated higher profit margins," Caterpillar chief executive Jim Umpleby said.

"While a number of our end markets remain challenged, construction in China and gas compression in North America were highlights in the quarter," he said.

"Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions."

Caterpillar boosted its 2017 sales outlook to a range of $42 to $44 billion, $3-4 billion higher than the previous estimate. The company also projected higher full-year profits.

Shares of Caterpillar surged 5.0 percent to $113.60 in pre-market trading.

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