Caterpillar reported a higher quarterly profit on Monday, buoyed by strong demand for its excavators and other large construction equipment amid higher infrastructure spending and a rebound in residential real estate market in the U.S.
Caterpillar shares jumped over 7% on the news.
Expenditure on heavy machinery remains robust among commercial clients, driven by the ongoing enhancements to roads, rail roads, and other transportation infrastructure in the U.S. facilitated by Biden Administration's $1 trillion package signed into law by President Joe Biden in 2021.
Caterpillar's earnings have also been shielded by effective cost controls and price hikes to fend off inflationary pressures.
The company's profit rose to $2.68 billion, or $5.28 per share, in the fourth quarter ended Dec. 31, from $1.45 billion, or $2.79 per share, a year earlier.
Sales and revenues for the quarter through December rose to $17.1 billion, from $16.6 billion a year earlier.