Caterpillar Sales Jump 10% in Third Quarter

Video: Caterpillar

Caterpillar reported Q3 sales of $17.6 billion, up 10% from $16.1 billion in the same period last year. The Texas-based manufacturer cited higher sales to end users.

Operating profit dropped 3% to $3.1 billion, the result of tariffs’ effect on manufacturing costs, downward pressure on machine prices, and other cost increases.

CFO Andrew Bonfield, in a video report (above), acknowledged the ongoing impact of tariffs on the equipment manufacturer, but said higher sales to end users illustrated strong demand. He said infrastructure spending was one driver for that demand.

Looking forward, Bonfield said backlog reached an “all-time record” of $39.8 billion. “That shows the strength of the end markets,” he said.

Sales in the construction group increased 7% to $6.3 billion. Energy & transportation sales were up 17% to $7.2 billion, making it the largest group within the company for top-line sales.

In construction, North America accounted for 57% of the revenue. Sales were up 8% in the region to $3.9 billion, although prices continued under downward pressure. Profits for the segment were off 7% to $1.38 billion. “Price realization” accounted for $262 million, and manufacturing costs—including tariffs—accounted for $174 million.