New York (AFP) - Caterpillar reported higher profits Thursday and offered an upbeat outlook on industrial conditions, but shares fell amid worries over weakening global growth.
The maker of equipment for the construction, oil and gas and mining sectors reported $1.9 billion in profits in the first quarter, up 26 percent from the year-ago period on a 17 percent jump in revenues to $15.9 billion.
"We have a healthy level of demand," Chief Executive Jim Umpleby said on a conference call with analysts. "We feel good about the market conditions."
Revenues rose across Caterpillar's three industrial divisions, with especially strong growth in North America compensating for much more modest increases in Asia and the Pacific.
Despite topping analyst estimates, Caterpillar shares fell 2.4 percent to $211.07 in early-afternoon trading.
The tepid investor response reflects "lingering recession fears," said a note from Briefing.com.
While Caterpillar's "upbeat report should douse rising recession fears, investors are waiting for more clarity, especially given rising interest rates, the recent cracks in the regional banking sector, and tightening lending conditions," said Briefing.com.
Briefing.com also cited moderating expected demand among Caterpillar's dealers compared with outsized purchases in the second half of 2022.
