LOS ANGELES (AP) â¿¿ Shares of industrial companies gained in afternoon trading on Monday after Caterpillar Inc. reported strong third-quarter earnings and projected that strong demand for construction and mining equipment should boost its revenue through next year.
The results from the world's largest maker of construction and mining equipment can reflect broader trends for growth and investment around the world.
Developing nations continue to need construction equipment as their economies prosper, while developed countries, whose growth is weak, are replacing older equipment. Meanwhile, higher commodity prices are attracting more investment in mines and fueling demand for mining machinery.
Caterpillar, which makes everything from black-and-yellow excavators and harvesters to diesel-electric locomotives, reported a profit of $1.14 billion, or $1.71 a share, between June and September. That was up 44 percent from $792 million, or $1.22 per share, a year earlier.Revenue surged 41 percent to $15.72 billion, and demand for machinery came from across the globe. Caterpillar said it expects to earn $6.75 per share on sales of $58 billion in 2011. That's up from its previous forecast of $6.25 to $6.75 per share on revenue of $56 billion to $58 billion. It also projects that revenue next year will increase between 10 percent and 20 percent from 2011. The Peoria, Ill.-based company's shares rose $4.38, or 5 percent, to $91.77 in afternoon trading, well ahead of the broader market. Elsewhere among industrial companies: â¿¿ Flowserve Corp. rose $4.98, or 5.9 percent, to $89.35. â¿¿ Deere & Co. added $2.27, or 3.1 percent, to $74.50. â¿¿ Cummins Inc. gained $4.51, or 4.5 percent, to $98.48. â¿¿ Danaher Corp. rose $1.34, or 2.9 percent, to $48.25. â¿¿ Snap-On Inc. climbed $1.33, or 2.6 percent, to $52.96. â¿¿ Eaton Corp. added $1.98, or 4.7 percent, to $44.23. â¿¿ Ingersoll-Rand PLC rose $1.74, or 6.2 percent, to $29.68.