Construction demand drives Caterpillar sales
Revenue increased by 25%
Construction demand drove third-quarter sales higher at Caterpillar as did rising demand from miners and other heavy industry as the global economy emerges from the pandemic.
Revenue climbed 25% to $12.4 billion from $9.88 billion, and in the construction industry unit, revenue increased to $5.26 billion, from $4.06 billion.
Despite falling just shy of Wall Street projections on revenue, shares of Caterpillar Inc. jumped more than 3% before the opening bell Thursday.
An American flag flies over Caterpillar Inc. dump trucks at the Whayne Supply Co. dealership in Louisville, Kentucky, in January 2020. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
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Dealers lowered inventories by $300 million in the third quarter, a considerable improvement from the $600 million cut a year earlier, the Deerfield, Illinois, company reported.
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Construction machines from Caterpillar Inc. stand ready for shipment at Lianyungang port in May 2020 in Lianyungang, Jiangsu Province of China. (Gen Yuhe/VCG via Getty Images / Getty Images)
Net income was $1.43 billion, or $2.60 per share, for the period ended Sept. 30. A year earlier it earned $668 million, or $1.22 per share.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CAT | CATERPILLAR INC. | 389.59 | +8.09 | +2.12% |
Removing certain items, earnings were $2.66 per share. This easily beat the $2.26 per share that analysts had projected, according to a survey by Zacks Investment Research.
Caterpillar Inc. excavators are displayed for sale at the Whayne Supply Co. dealership in Louisville, Kentucky, in Jan. 2020. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
The construction industry was hit by the spread of COVID-19 like all others, but the pandemic did drive housing and construction demand as people sought larger or new places to live. Mining and construction have taken off this year as well as industries begin to elevate production