Caterpillar announced Q2 2019 sales and revenues of $14.4 billion, a 3 percent increase compared with $14.0 billion in the second quarter of 2018. The improvement was primarily due to favorable price realization and higher sales volume driven by improved demand for equipment.
Operating profit for Q2 was $2.2 billion, up 2 percent compared with $2.2 billion in the second quarter of 2018. Operating profit margin was 15.3 percent for the second quarter of 2019, compared with 15.5 percent for Q2 of 2018.
Construction industries total sales were $6.5 billion in the second quarter of 2019, a 5 percent increase compared with $6.2 billion in the Q2 of 2018. Sales increased primarily due to the favorable impact of dealers increasing inventories in 2019, compared with decreasing inventories in 2018. Construction industries profit was a record $1.2 billion in the second quarter of 2019, an 8 percent increase compared with $1.2 billion in the second quarter of 2018.
The company continues to expect modest sales growth in 2019, which assumes a recovery in Oil and Gas near the end of the year, and dealers working through higher machine inventory levels. The company also expects price realization to offset manufacturing costs.
“Sales and revenues increased this quarter, including a record performance from Construction Industries, which reflected our strong competitive position globally,” Caterpillar Chairman and CEO Jim Umpleby said in a press release. “Our strong operating cash flow in the quarter allowed us to repurchase shares and pay dividends of about $1.9 billion. This is in line with our intention to return substantially all free cash flow to shareholders.”
Source: Caterpillar
