Seven Group Holdings, which is 73 per cent controlled by Mr Stokes, was the best-performing stock on the ASX 200 on Wednesday, jumping 10.77 per cent to $11.31.

Along with its stake in Seven West Media, Seven Group owns a number of industrial services companies including WesTrac, an authorised Caterpillar dealer in Western Australia, NSW, the ACT and across north-eastern China, where it has 78 branches selling construction and mining equipment.

The American machinery company on Tuesday said China's improving economy and its growing demand for energy and transport had improved sales performance in that country.

Caterpillar raised its 2017 sales forecast and reported first-quarter earnings ahead of analysts' expectations. Caterpillar said worldwide retail sales of machines in the three month to March rose 1 per cent compared to the same period last year, after four straight years of declining sales.

Asia-Pacific leads turnaround

The turnaround was led by the Asia-Pacific region, which saw 26 per cent sales growth in the three months to January, 39 per cent growth in the three months to February and 46 per cent growth in the quarter to March.

Seven Group's China business generated $600 million in revenue last financial year and $563 million the year before, according to its annual report.

WesTrac China delivered earnings before interest and tax of $31.3 million in 2016, up 33 per cent from the prior year. WesTrac China ran at an $2.5 million EBIT loss in 2013.

China's economy has accelerated for two straight quarters, improving sales prospects for Caterpillar. Caterpillar's forecast offers investors good news at a time when a US criminal probe into the company's offshore dealings has weighed on the stock.

Seven Group's share price has almost doubled over the past year. The conglomerate slipped to a half-year loss of $41.8 million in the first half of this financial year thanks largely to a $139.6 million write-down against its stake in Seven West. The media company suffered a 91 per cent drop in half-year profit and a 24 per cent hit to its share price.

On an underlying basis, the group's pre-tax profit jumped 8 per cent in the half, thanks to earnings growth in WesTrac and Coates Hire. Seven Group upgraded its full-year guidance after the result to be up 5 to 10 per cent on the 2015-16 year.

With Bloomberg