Strong increase in Q2 sales for Caterpillar driven by one region
01 August 2023
Caterpillar has released its second quarter 2023 financial results, revealing that sales for its Construction Industries’ division were US$7.154 billion, an increase of $1.121 billion (19%) from the same quarter last year.
Sales were driven by strong growth in North America, with sales in the region up by just under a third to US$3.968 billion.
The world’s largest construction OEM also saw sales increase in Europe, Africa and the Middle East (EAME) by 20% to US$1.438 billion. Sales were flat in Asia/Pacific at US$1.149 billion and fell by 11% in Latin America to US$566 million.
Construction Industries’ profit was US$1.803 billion in the second quarter of 2023, an increase of $814 million, or 82%, compared with $989 million in the second quarter of 2022. Caterpillar says that the increase was mainly due to favourable price realisation and higher sales volume.
The company’s resource industries division, which includes mining equipment, had total sales of US$3.563 billion in the second quarter of 2023, an increase of US$602 million, or 20%, compared with US$2.961 billion in the second quarter of 2022.
All geographical regions saw sales increases although – like in the construction division – North America was the biggest driver with an increase in sales of 31%. Sales were up 18% in Asia/Pacific, 15% in Latin America and 6% in EAME.
“I’m proud of our global team’s strong operational performance in the second quarter. Our results reflect continued healthy demand as we achieved double-digit top-line growth and record adjusted profit per share while generating strong ME&T free cash flow,” said Jim Umpleby, Chairman and CEO.