Caterpillar Inc. (NYSE: CAT) climbed on quarterly earnings out before Thursday morning’s opening bell.
The heavy-equipment manufacturer said sales and revenues in the fourth quarter of 2017 were $12.9 billion, compared with $9.6 billion in the fourth quarter of 2016. Fourth-quarter 2017 loss was $2.18 per share, compared with a loss of $2.00 per share in the fourth quarter of 2016.
The consensus was for quarterly earnings of $1.76 per share on revenue of $11.85 billion.
Adjusted profit per share in the fourth quarter of 2017 was $2.16, compared with fourth-quarter 2016 adjusted profit per share of $0.83. Adjusted profit per share in 2017 was $6.88, compared with 2016 adjusted profit per share of $3.42.
Caterpillar is beginning 2018 with strong sales momentum resulting from strong order rates, lean dealer inventories and an increasing backlog.
Additionally, there are positive economic indicators across most of the world and in many of the company's end markets.
The company expects 2018 profit per share in a range of $7.75 to $8.75.
Excluding restructuring costs of about $400 million, adjusted profit per share is expected in a range of $8.25 to $9.25.
CEO Jim Umpleby declared, "We are in the early stages of implementing our strategy for profitable growth. In 2018, we expect to make additional investments in the expanded offerings and services important for Caterpillar's long-term success.
“We will use our Operating & Execution Model to bias resources to areas that represent the greatest opportunity for return on our investments.”
Shares in CAT moved ahead $1.34 to $169.68
