On Wednesday, heavy-equipment maker Caterpillar Inc (NYSE:CAT) topped Wall Street estimates for profit and revenue as the industrial bellwether continued to benefit from equipment price increases and elevated energy prices. Shares for the world’s largest construction and mining manufacturer were up 4.3 per cent in premarket trading.

While net income for the Deerfield, Illinois-based company surged to USD 2.04 billion, revenue increased to USD 15 billion.
However, supply-chain challenges have clipped its ability to ship units, elevating costs and resulting in the industrial bellwether raising prices.

Demand for Caterpillar’s machines that are used in everything from homebuilding to mining is an indicator of business confidence and broader economic activity. With drilling activity surging in the first half of the year, Caterpillar’s resource division saw the biggest jump, with total sales increasing 30 per cent overall.

In the previous quarter, the company had flagged a bigger fall in demand for its excavators in its growing market, China.
Caterpillar’s adjusted profit rose to USD 3.95 per share, outpacing estimates of USD 3.16 per share.