Caterpillar Inc. (NYSE: CAT) reported first-quarter 2014 results before markets opened Thursday. For the quarter, the heavy equipment firm posted adjusted diluted earnings per share (EPS) of $1.61 on revenues of $13.24 billion. In the same period a year ago, the company reported adjusted EPS of $1.31 on revenues of $13.21 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.24 and $13.14 billion in revenues.

The company’s adjusted EPS excluded restructuring charges of $0.17 a share.

Caterpillar reaffirmed its previous guidance that 2014 sales will be flat, at around $56 billion plus or minus 5%. But the company now thinks that its total profit for the year will increase by $0.25 a share. Excluding restructuring costs, 2014 EPS is estimated at $6.10, up from the previous estimate of $5.85. The company expects sales improvement of about 10% in its construction segment and 5% in its energy and transportation segment. Sales in its resources (mining) segment are expected to be down 20% for the year, double the previous guidance of down 10%.

The company’s CEO said:

We’re lowering costs, improving cash flow and driving value for our customers through the continued deployment of our lean manufacturing initiatives. … The change in our profit outlook is a result of our very solid performance in the first quarter, while also recognizing the uncertainty we are facing in a number of areas of our business and the continued risk that geo-political events could negatively impact global GDP growth.

Caterpillar posted much better results than either the company or analysts expected. While it is true that expectations have been cut, most of those cuts came at the end of the September quarter last year. The EPS forecast, for example, did not change over the past 90 days, even though it wobbled a bit over and under the number. The catch is that the company needs to do more than just cut costs, and that will be trickier in the uncertain global economy.

Caterpillar shares were up about 4% in premarket trading, at $107.45, a new 52-week high if it holds. The current 52-week range is $80.86 to $104.62 and that high was posted Wednesday. Thomson Reuters had a consensus analyst price target of around $102.35 before the report.

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