Caterpillar exceeds profit expectations

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Caterpillar said yesterday demand for mining and construction equipment was strong, with the company announcing a third-quarter profit rise of 44 per cent.

The world’s largest mining and construction equipment manufacturer’s results were almost double the expected 26 per cent increase.

Third-quarter income rose to $1.14 billion, from $792 million a year earlier, and total revenue increased 41 per cent to $15.7 billion, from $11.1 billion a year earlier.

According to Dow Jones Newswires, Caterpillar chief executive Doug Oberhelman said instability in world markets and the Europe debt crisis were not having an adverse impact on the business.

“Although there is a good deal of economic uncertainty in the world, we are not seeing it much in our business at this point,” he said.

“We do not hear anecdotally from dealers or our customers that there is less work today than there was a year ago.”

Oberhelman also said moves by the Chinese Government to curb inflation had brightened the company’s long-term outlook.

Earlier this year Caterpillar announced it would be expanding operations in China with a new manufacturing facility.

The company also announced a massive $8.8 billion acquisition of Bucyrus late last year, which was finalised in July.

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