Caterpillar Crushes Expectations on Construction Rebound

The need for excavators and bulldozers unexpectedly surged in the past few months because more houses were built in the United States. Construction machinery maker Caterpillar was pleasantly surprised. It sold $13.6 billion worth of machinery in the third quarter, much better than forecasts. As a result, its profit blew all expectations away and came in at $1.72 a share. U.S. housing rebounded lately and construction spending rose 5 percent in August. They helped Caterpillar's North America sales to grow. Internationally, Caterpillar is optimistic on the outlook even though it warns that social conflicts in Eastern Europe and the Middle East could delay some constructions. Caterpillar is worried about the falling need of mining equipment. Some of the world's largest miners, such as BHP Billiton and Vale, will most likely mine less in the coming year.