CAT stock on NSE is surging in pre-market on Thursday. Caterpillar Inc share price rose 6 per cent after the construction and mining equipment maker reported higher first-quarter profit. CAT shares closed in red yesterday.
Caterpillar reported a higher first-quarter profit on Thursday, led by strong demand for its power generation and construction equipment. The company, seen as a bellwether for the global industrial economy, reported an adjusted per-share profit of $5.54 in the January-March period, compared with $4.25 a year earlier.
Over the last year, Caterpillar's power and energy segment has seen a windfall from data center clients seeking power generation and backup equipment to fuel surging use of artificial intelligence.
The company's overall revenue rose 22 per cent to $17.42 billion. Its core construction segment revenue jumped 38 per cent, while the power and energy segment revenue was up 22 per cent.
Analysts had noted in a pre-earnings note that the company's earnings would have benefited from dealers building fresh inventory of its construction equipment and strong execution of its pending AI orders.
Caterpillar said its construction equipment segment was aided by higher sales volume and better pricing, but partly offset by higher manufacturing costs tied to tariff costs.
Its first-quarter adjusted profit per share rose to $5.54 in the January-March period, compared with $4.25 a year earlier, beating analysts' expectation of $4.62 per share, according to data compiled by LSEG.
Revenue from its core construction segment jumped 38 per cent, while the power and energy segment revenue was up 22 per cent. Both segments were helped by strong demand from customers in North America, Caterpillar's biggest market.
Caterpillar said benefits from higher sales volume and better pricing were partly offset by unfavorable manufacturing costs of $710 million, largely tied to higher tariffs.
Industrial firms in the U.S. were among the hardest-hit companies by Trump's U.S. tariffs, which raised costs of imported raw materials and production machinery, while the broader economy took a hit from delayed business activity and sluggish corporate spending.
Caterpillar reported a higher first-quarter profit on Thursday, led by strong demand for its power generation and construction equipment. The company, seen as a bellwether for the global industrial economy, reported an adjusted per-share profit of $5.54 in the January-March period, compared with $4.25 a year earlier.
Over the last year, Caterpillar's power and energy segment has seen a windfall from data center clients seeking power generation and backup equipment to fuel surging use of artificial intelligence.
The company's overall revenue rose 22 per cent to $17.42 billion. Its core construction segment revenue jumped 38 per cent, while the power and energy segment revenue was up 22 per cent.
Analysts had noted in a pre-earnings note that the company's earnings would have benefited from dealers building fresh inventory of its construction equipment and strong execution of its pending AI orders.
Caterpillar said its construction equipment segment was aided by higher sales volume and better pricing, but partly offset by higher manufacturing costs tied to tariff costs.
Its first-quarter adjusted profit per share rose to $5.54 in the January-March period, compared with $4.25 a year earlier, beating analysts' expectation of $4.62 per share, according to data compiled by LSEG.
Revenue from its core construction segment jumped 38 per cent, while the power and energy segment revenue was up 22 per cent. Both segments were helped by strong demand from customers in North America, Caterpillar's biggest market.
Caterpillar said benefits from higher sales volume and better pricing were partly offset by unfavorable manufacturing costs of $710 million, largely tied to higher tariffs.
Industrial firms in the U.S. were among the hardest-hit companies by Trump's U.S. tariffs, which raised costs of imported raw materials and production machinery, while the broader economy took a hit from delayed business activity and sluggish corporate spending.
