US heavy equipment maker Caterpillar Thursday raised its 2015 profit forecast despite warning that it expects tougher times ahead in its oil-related business.
Caterpillar, which provides equipment for the construction, mining and oil sectors, notched first-quarter earnings of $1.1 billion, up 20.5 percent from the year-ago period.
Key factors behind the improvement included a one-time gain of $120 million from the sale of a stake in a logistics business and lower restructuring costs compared with 2014.
But overall revenues dropped 4.1 percent to $12.70 billion, more than the $12.38 billion forecast. The drop was due to lower transaction volumes and the impact of the strong dollar.
Sales in construction industries dropped seven percent, while revenues in resource industries fell nine percent. Sales in energy and transportation were flat.
Chief executive Doug Oberhelman called the performance of the energy and transportation sector "great", but expects the oil side of the business to take a hit to the drop on crude prices.
"We delivered solid results for the first quarter of this year," Oberhelman said.
"Our focus on operational improvement, including lean manufacturing and cost management, is helping in what is a tough time for some of our important cyclical businesses."
Headcount at the industrial giant now stands at 113,322, down 9.4 percent from 2011.
Quarterly earnings translated into $1.81 per share, much above the $1.35 expected by analysts.
Caterpillar increased its 2015 profit forecast by 10 cents to $4.70 a share. Excluding restructuring costs, the EPS forecast was upped to $5.00 from $4.70.
Shares of Dow member Caterpillar rose 1.2 percent to $85.89 in early trade.
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