Machinery giant Caterpillar has raised its revenue forecast from $50 billion to between $52 billion and $54 billion as the accelerating economic recovery boosted demand for its mining and construction equipment.
Q1 revenue was up 57% to $12.95 billion from $8.24 billion in the same time last year as its machinery and power systems division surged to $12.29 billion for the quarter.
“We expect that the pace of world economic growth will support continued recovery in the key industries we serve,” said CEO Doug Oberhelman.
Oberhelman added that its outlook would have been higher if not for the earthquake and tsunami in Japan, which damaged many of its suppliers. He said that resulting supply disruptions and delays throughout its system likely will cost the company $300 million in lost sales and $100 million in lost profit.
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