Caterpillar third-quarter profit rises on power equipment demand
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Oct 29 (Reuters) Caterpillar reported a higher third-quarter profit on Thursday, helped by strong demand for its backup power equipment, turbines and construction equipment. However, its shares dropped 6% in premarket trading. The company, seen as a bellwether for the global industrial economy, reported an adjusted profit of $7.20 per share for the quarter through September, compared with $4.95 per share a year earlier. Caterpillar is among a group of industrial firms that have garnered a windfall from an AI-fueled expansion of data centers across the US, which requires everything from construction equipment to generators as well as cooling equipment. The company builds power generators and backup power equipment under its power and energy segment, while its construction industries segment manufactures excavators and bulldozers. (Reporting by Nandan Mandayam and Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli)