The world’s largest maker of construction equipment reported that its fourth quarter earnings grew 60%, giving market watchers plenty of reason to be optimistic about the world economy going forward. Demand for construction and construction equipment is seen as a key indicator of global economic strength.
The company itself was explicitly optimistic about the American economy in its quarterly filing, stating that it believed GDP growth in the U.S. would surpass 3%.
The Surprise: Caterpillar reported earnings per share of $2.32, beating the consensus view of $1.73 by 34%.