By Bob Tita

Caterpillar generators are a hot commodity among developers of computer data centers, despite challenges in some of the machinery maker's other business lines.

Power-generation sales rose 22% last quarter, and Caterpillar is building factory capacity to produce more large engines used as backup electricity generators at data centers.

"Many customers are planning orders with us over multiple years" for generators, said Chief Executive Jim Umpleby. "We could ship more if we could build more."

More broadly, for the fourth quarter:

-- Sales of equipment for construction and mining fell 8% and 9%, respectively, from a year earlier, while the engine and transportation business was roughly flat.

-- Profit totaled $2.79 billion, or $5.78 a share, up from $2.68 billion a year earlier. Revenue dropped 5% to $16.2 billion.

Caterpillar forecast slightly lower first-quarter sales, as the market for construction vehicles and other equipment remains tepid.

The first quarter is typically the company's weakest, and this year, Caterpillar expects dealers to build smaller inventories than usual.

Shares fell nearly 5% in morning trading.

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(END) Dow Jones Newswires

January 30, 2025 11:13 ET (16:13 GMT)

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