Caterpillar’s first-quarter 2019 sales and revenues increased by 5 percent to $13.5 billion, compared to $12.9 billion in Q1 of 2018. The company credits the increase to higher sales volume driven by improved demand for both equipment and services. Favorable price realization—the company’s ability to sell at targeted prices— primarily in construction industries and resource industries, also contributed to the sales improvement.
The company also repurchased $751 million in company stock.
Operating profit for Q1 of 2019 was $2.2 billion, compared with $2.1 billion in the first quarter of 2018. Operating profit margin was 16.4 percent for the first quarter of 2019 and 2018. The increase of $99 million was mostly due to favorable price realization and higher sales volume, partially offset by higher manufacturing costs and increased selling, general and administrative, and research and development expenses. The increase in manufacturing costs was primarily due to higher variable labor and burden, including freight costs, and material costs, including tariffs.