By MICHELLE CHAPMAN
AP Business Writer
Construction demand drove third quarter sales higher at Caterpillar as did rising demand from miners and other heavy industry as the global economy emerges from the pandemic.
Revenue climbed 25% to $12.4 billion from $9.88 billion, and in the construction industry unit, revenue increased to $5.26 billion, from $4.06 billion.
Despite falling just shy of Wall Street projections on revenue, shares of Caterpillar Inc. jumped more than 3% before the opening bell Thursday.
Dealers lowered inventories by $300 million in the third quarter, a considerable improvement from the $600 million cut a year earlier, the Deerfield, Illinois, company reported.
Net income was $1.43 billion, or $2.60 per share, for the period ended Sept. 30. A year earlier it earned $668 million, or $1.22 per share.
Removing certain items, earnings were $2.66 per share. This easily beat the $2.26 per share that analysts had projected, according to a survey by Zacks Investment Research.
The construction industry was hit by the spread of COVID-19 like all others, but the pandemic did drive housing, and construction, demand as people sought larger or new places to live. Mining and construction have taken off this year as well as industries begin to elevate production.