Construction equipment manufacturer Caterpillar reported a rise in profits for the first quarter of 2012, although the increase was slightly below analyst estimates, according to Bloomberg.
Revenue jumped 23 percent to $16 billion, slightly behind the $16.1 billion projected by analysts. While sales were strong in the U.S. and Europe, construction equipment purchases have slowed in Brazil and China, according to the news source.
The rise for Caterpillar outpaced U.S. construction spending as a whole, which was 6 percent higher in February than the year prior. Caterpillar CEO Doug Oberhelman said in a statement that there was strong demand for excavators, dump trucks, bulldozers and wheel loaders throughout the quarter, partly due to a boom in the mining industry.
"We're seeing strong global demand for most mining products and significant growth in replacement demand for products in the U.S., which more than offset slowing in China and Brazil," Oberhelman told the news provider.
In its report, the company revealed it expected profits to rise through the rest of the year, as many contractors will need to replace their aging construction equipment. According to the report, the average age of equipment in U.S. and European fleets is near an all-time high, likely indicating that contractors have been putting off purchases.
Those who will soon be replacing their construction equipment but want to save some money should consider the online auction site IronPlanet. The site offers a wide range of cranes, excavators, backhoes and other equipment, often at a more affordable price than buying new. All equipment is backed by IronClad Assurance, which allows buyers to view full inspection reports before they place a bid, so they know exactly what they're getting. IronPlanet can even help you sell your old equipment if need be.
