Caterpillar 1Q sales rise as dealers boost inventory levels

Caterpillar’s sales rose in the first quarter as market conditions for the machinery company begin to improve and dealers increase their inventory levels

Caterpillar's sales rose in the first quarter as market conditions for the machinery company begin to improve and dealers increase their inventory levels. Revenue climbed to $11.89 billion from $10.64 billion thanks to increased sales volume driven by higher end-user demand and changes in dealer inventories. Dealers boosted inventories by $700 million during the first quarter compared with $100 million in the prior-year period. The performance easily beat the $11.05 billion in revenue analysts polled by Zacks Investment Research expected. Sales for the construction industries segment rose 27%. North American sales climbed slightly, with higher end-user demand driven mostly by residential construction.