Improving industrial demand lifted Caterpillar's sales and boosted the 2018 outlook even as the company on Thursday reported a fourth-quarter loss due to massive one-time charges connected to the US tax reform. Caterpillar, which sells heavy manufacturing equipment to the mining, oil and construction industries, reported a loss of $1.3 billion in the quarter ended December 31, slightly more than the $1.2 billion loss in the same period of the prior year.
The loss was due to $2.4 billion in charges attributed to provisions in the US tax reform on deferred taxes and the repatriation of non-US profits. But the firm saw revenues jump nearly 35 percent to $12.9 billion, with all three of its businesses gaining.
The company highlighted much-improved industrial demand after a lengthy slump hit its business, especially mining. Annual profits were $754 million, recovering from a loss of $67 million in 2016. "After four challenging years, many key markets improved in 2017, and our global team delivered strong results," said Caterpillar chief executive Jim Umpleby.
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