As the statement of the company, sales are expected to be about $56 billion with a plus or minus of 5%. The average of 13 estimates compiled by Bloomberg was $55.5 billion. Caterpillar jumped 5.9% to $91.29 in New York, which was considered the biggest profit since November 2011.
It is also expected that profit will be $5.85 per share, excluding $400 million to $500 million in restructuring costs, which is more than the estimate of $5.77 average. Illinois-based Caterpillar, Peoria, also confirmed approving a $10 billion share buyback plan through 2018 and will repurchase about $1.7 billion in stock in the first quarter that will mark its previous authorization.
The shares had dropped by 2.6% on January 24 in the midst of a general decline in equities. A selloff in developing-nation currencies led to concern that financial markets will be more unstable.
Caterpillar forecasts the growth of world economic by 3% in 2014, which is about 2% up from last year. It expects sales in its power systems and construction industries units to rise by 5%. Besides, it said that the resources segment, which includes mining equipment, will see revenue fall of about 10%. Caterpillar also added that the sales in construction industries rose by 20% in the fourth quarter as dealers did not cut inventory like last year and also the deliveries to customers in Latin America, North America and China escalated.