UPDATE 1-Caterpillar beats profit estimates, raises forecast

Caterpillar Inc beat analysts' estimates for first-quarter profit on higher sales of its construction and mining equipment in its biggest market North America. The heavy-duty equipment maker, a bellwether for an economic activity whose results often influence global stock market sentiment, also raised its full-year profit forecast as it booked a tax gain in the first quarter stemming from President Donald Trump's tax reforms. The company's shares were up 1 per cent in premarket trading. The latest quarter results come off a disappointing showing in the fourth quarter, which was hit by a sharp slowdown in China.

Sales in North America rose 7 per cent, driven by a 13 per cent rise in sales of construction equipment. The company reported an adjusted profit of $2.94 per share in the first quarter, compared with $2.82 a share, last year. Analysts on average had expected earnings of $2.85 a share.

Total sales and revenue rose about 5 per cent to $13.5 billion. The company said it now expects 2019 profit of $12.06 per share to $13.06 per share, compared with $11.75 to $12.75 per share forecast earlier.