Heavy equipment maker Caterpillar Inc. (NYSE:CAT) reported a rise in its first-quarter profit as equipment demand picks up coming out of the global pandemic.
Caterpillar is also benefitting from U.S. President Joe Biden's $2-trillion infrastructure plan that includes hundreds of billions of dollars for building and repairing roads, bridges, transit, schools and other projects.
Strong momentum in China, one of Caterpillar's key markets, is also aiding the company’s sales as construction and manufacturing activity expands with the pandemic easing in that country.
Caterpillar's equipment sales in the first quarter rose across its three business segments, with sales in its construction industries unit increasing 27% to $5.46 billion U.S.
The company reported an adjusted profit of $2.87 U.S. per share in the quarter ended March 31, compared with $1.65 U.S. per share a year earlier. Total revenue rose 11.8% to $11.89 billion U.S., above the average analyst estimate of $11.09 billion U.S., according to Refinitiv data.
