Caterpillar revenues boosted by mining and construction equipment

Higher demand in its mining and construction businesses helped industrial bellwether Caterpillar beat forecasts for first-quarter sales and prompted it to boost its full-year earnings outlook.

The Illinois-based company said sales rose 5 per cent from a year ago to $13.5bn, ahead of analyst estimates for $13.4bn, according to a Refinitiv survey. Caterpillar shares slid 1 per cent in pre-market trade.

Sales in Caterpillar’s resource industries jumped 18 per cent as mining production levels and commodity market fundamentals remained positive.

Meanwhile, higher demand for new equipment, primarily to support road construction, in North America drove revenue in its construction unit up 3 per cent. Revenues in energy and transportation were flat.

The company, known for its bulldozers, backhoes and other large machinery, reported a profit of $1.9bn, or $3.25 a share, up from $1.7bn, or $2.74 a share, in the year ago quarter. Adjusting for one-time items, earnings of $2.94 a share exceeded analysts expectations for $2.85.

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Comfort Systems USA Announces Acquisition

Business Wire | February 01, 2024

Comfort Systems USA, Inc. today announced that it has closed its previously announced transaction to acquire Summit Industrial Construction, LLC (“Summit”) headquartered in Houston, Texas. As previously disclosed, Summit is a specialty industrial mechanical contractor offering engineering, design-assist and turnkey, direct hire construction services of modular systems serving the advanced technology, power, and industrial sectors. Summit’s capabilities encompass a wide range of modular and site-based construction, including process piping, equipment setting, large pipe rack trestles, and related steel erection and specialty concrete work. Summit is a trusted supplier to some of the world’s largest advanced technology, power and industrial companies and is currently deployed on several major chip fabrication projects. Initially, Summit is expected to contribute annualized revenues of approximately $375 million to $400 million, and earnings before interest, taxes, depreciation, and amortization of $35 million to $40 million. In light of the amortization expense, Summit is expected to make a neutral to slightly accretive contribution to earnings per share in 2024 and 2025. Brian Lane, Comfort Systems USA’s Chief Executive Officer, commented, “We are delighted to announce the closing of our agreement to acquire Summit, an extremely capable provider of modular and other complex mechanical services. Summit brings a stellar reputation as a modular technology leader in growing end markets, including multiple ongoing and large semiconductor projects. We are happy to welcome Summit’s wonderful leadership team and excellent production and craft workers across many states, and we are confident Summit will continue to innovate and grow as a part of our network of world-class contracting companies. We are grateful that Summit has chosen to become part of Comfort Systems USA.”

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