Caterpillar posts strong quarterly earnings

US industrial giant Caterpillar reported today sharply improved earnings for the third quarter, citing restructuring and cost controls that helped it weather slower global economic growth.
Caterpillar, maker of a wide range of heavy construction, machinery and mining equipment, raised its 2014 profit outlook and said there was "a reasonable likelihood" that the world economy would improve next year.
The company, considered a bellwether of the global economy, said net profit rose eight percent from a year ago to USD 1.02 billion.
"We're pleased with the third-quarter profit improvement considering world economic growth remains slower than we'd like," said Doug Oberhelman, Caterpillar chairman and chief executive, in a statement.

Oberhelman said the company's restructuring, which cost nine cents per share in the third quarter, was beginning to be reflected in the results.
"The diversity of the businesses we're in and the strengthening of our operational performance have been key to helping us improve results and our competitive position in this weak economic recovery," he said.

"Our broad geographic reach and manufacturing footprint help mitigate the impact of currency fluctuations. In fact, currency impacts were positive in the third quarter."
Earnings translated into USD 1.36 per share, roughly 12 per cent higher than a year ago and in line with expectations.

Excluding restructuring costs, earnings per share were USD 1.72, well above analyst expectations of roughly USD 1.35 per share.
Sales and revenues in the July-September quarter rose 1.0 percent to USD 13.55 billion, smashing expectations of USD 13.19 billion.
The company raised its 2014 earnings outlook, despite keeping its sales outlook near USD 55 billion.
Caterpillar said it expected that growth-oriented monetary policies in developed countries would support steady modest economic improvement.
It cited potential for increased infrastructure investment, particularly in the United States, India and Turkey.