(Reuters) – Heavy machinery maker Caterpillar Inc on Thursday reported a rise in first-quarter profit as a boost in U.S. infrastructure spending kept its order books full and softened the hit from higher manufacturing costs.
The Biden administration’s infrastructure legislation encouraged spending in the construction sector, spurring demand for the machinery maker’s excavators, bulldozers and trucks.
Its energy customers, grappling with aging machines and tight production capacity, also placed more orders for parts and engines as drilling activities surged with higher oil and gas prices.
Healthy demand, coupled with strong pricing, helped Caterpillar navigate higher material and freight costs amid ongoing supply challenges.
Shares of the company rose 1.8% in premarket trade.
Caterpillar’s sales and revenue for the quarter through March 31 rose to $15.9 billion from $13.6 billion a year ago.
Adjusted profit rose to $4.91 per share from $2.88 a year earlier.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Devika Syamnath)
By: OAN
