Emerging economies are developing at a prodigious rate, and they are demanding more goods as a result. The strong demand for industrial goods has helped U.S. manufacturers produce better-than-expected earnings results and some are even raising profit forecasts.

The idea that emerging markets have been sustaining and even driving growth for U.S.-based corporations is hardly a new one. But the first-quarter earnings season has only served to boldface and underline the point: emerging markets are where it’s at. Have a look:

  • Martin Richenhagen, Agco’s (NYSE: AGCO) chairman, president and chief executive officer, stated that “in Brazil, market demand was near record levels, and we were very pleased with our sales and margin performance.” However, sales for agriculture equipment in Western Europe weren’t as impressive.
  • Cummings Inc. (NYSE: CMI), diesel engines and gas turbines manufacturer, delivered a profit of 75 cents a share when the market widely expected profits of 35 cents a share. Demand for engines and power generation equipment from China, India and Brazil surged, but North America demand remained weak.
  • 3M (NYSE: MMM) reported sales in Asia-Pacific region were up 54.1% during the first quarter, beating market expectations by 19 cents or 10%.

The average investor is underallocated internationally, it’s true. But if you’re too risk-averse to think about adding emerging market companies to your portfolio, an alternative route to go is by putting U.S. corporations that are aware of and utilize the growing power of developing economies for their continued growth.

For more information on the industrials sector, visit our industrials category.

  • iShares Dow Jones U.S. Industrial (NYSEArca: IYJ): Top holdings include 3M, 3.5%; Caterpillar, 2.6%

  • Industrial Select Sector SPDR (NYSEArca: XLI): Top holdings include 3M, 5.3%; Caterpillar, 3.8%

  • Vanguard Industrials ETF (NYSEArca: VIS): Top holdings include 3M, 3.9%; Caterpillar, 2.7%

  • Ultra Industrials ProShares (NYSEArca: UXI)

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.