Caterpillar beat Wall Street's profit and revenue estimates on surprisingly strong demand for its construction equipment in North America and robust sales in China.
The company also raised its full-year forecasts for sales and earnings, expecting revenue in its construction business to surge about 20% and mining business to jump 30%.
The construction industry in North America is turning around after years of slow demand, fueled by a steady housing recovery, an improving labour market and higher spending by oil and gas companies.
Sales in North America, Caterpillar's biggest market, jumped 27% in the third quarter ended September.
Construction revenue from the region rose 31% to $2.17 billion and revenue from resources, including mining, rose 28% to $581m.
Construction revenue in Asia Pacific, Caterpillar's third-biggest, jumped 57% to $1.29 billion, boosted by demand from China.
While China has been the bright spot for Caterpillar for several quarters, the pace of growth in the country's property sector cooled considerably in the third quarter.
This potentially will dent demand for the company's iconic yellow earth-moving equipment.
The company said it now expects 2017 sales and revenue of $44 billion, up from its earlier forecast of $42 billion to $44 billion. It expects adjusted earnings of $6.25 per share, up from the $5.
Net profit rose nearly four-fold to $1.06 billion.
Excluding restructuring costs, Caterpillar earned $1.95 per share, compared with the average analyst estimate of $1.27 per shares, according to Thomson Reuters.
The company said its total revenue rose to $11.41 billion, ahead of market estimates of $10.65 billion.
