US heavy equipment supplier Caterpillar has raised its full-year earnings outlook on the back of stronger-than-expected demand, Kallanish learns from the company’s third quarter earnings review.

Caterpillar has raised its earnings forecast to $4.60/share from its midpoint estimate of $3.50/share. Caterpillar recorded a Q3 profit of $1.77/share, or $1.06 billion, on sales of $11.4 billion.

The company is in the midst of a long-term capacity cut, first announced in 2015 and targeting a 10,000 production job reduction by the end of 2018.

“Caterpillar continues to see strength in a number of industries and regions, including construction in China, on-shore oil and gas in North America, and increased capital investments by mining customers,” the company says. “We are working with our supply chain to increase production levels to satisfy customer demand for those markets that have improved.”