Caterpillar’s second quarter 2017 sales and revenues increased by 9.5 percent compared to 2016, reaching $11.3 billion. In response the company released an improved outlook for the remainder of the year.
“Our team delivered an impressive quarter. As demand increased, we continued to control costs and generated higher profit margins,” says CEO Jim Umpleby regarding the company’s financial details released July 25. “While a number of our end markets remain challenged, construction in China and gas compression in North America were highlights in the quarter. Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions.”
Cat reports profit per share of $1.35, compared to $0.93 for the second quarter of 2016, and an adjusted profit per share of $1.49, compared to $1.09 last year.
Construction Industries sales and revenue increased by $504 million in the second quarter compared to 2016, reaching $4.9 billion, followed by growth in Resource Industries of $302 million to $1.7 billion and Energy & Transportation by $191 million to $3.9 billion.
Construction Industries operating profit grew by 64 percent year-over-year to $901 million. Energy & Transportation grew by 16 percent to $700 million.
Geographically, the Asia/Pacific region lead the way in sales for Construction Industries, increasing 44 percent in the second quarter this year to $1.3 billion. This was followed by Latin America with 31 percent growth to $364 million. Cat reports the Asia/Pacific region was led by excavator sales in China, with significant growth coming in 10 ton and above machines.
