<p>Caterpillar’s sales rose in the first quarter as market conditions for the machinery company begin to improve and dealers increase their inventory levels.</p>
<p>Revenue climbed to $11.89 billion from $10.64 billion thanks to increased sales volume driven by higher end-user demand and changes in dealer inventories. Dealers boosted inventories by $700 million during the first quarter compared with $100 million in the prior-year period. </p>
<p>The performance easily beat the $11.05 billion in revenue analysts polled by Zacks Investment Research expected. </p>
<p>Shares climbed nearly 3% before the market open on Thursday. </p>
<p>Sales for the construction industries segment rose 27%. North American sales climbed slightly, with higher end-user demand driven mostly by residential construction.</p>
<p>“We’re encouraged by improving conditions in our end markets and are proactively managing supply chain risks," Chairman and CEO Jim Umpleby said in a statement. </p>
<p>For the three months ended March 31, Caterpillar Inc. earned $1.53 billion, or $2.77 per share. A year earlier it earned $1.09 billion, or $1.98 per share. </p>
<p>Stripping out restructuring costs and other items, earnings were $2.87 per share. That’s well above the $1.93 per share that Wall Street was looking for. </p>
<p>Shares of the for the Deerfield, Illinois, company rose about 2% before the opening bell. </p>
