Caterpillar adjusted profit rises as equipment demand picks up

Reuters2021-04-29

Heavy equipment maker Caterpillar Inc reported a rise in adjusted first-quarter profit on Thursday, as equipment demand picked up after a pandemic-led slump last year.

Caterpillar is expected to benefit from U.S. President Joe Biden’s massive $2 trillion infrastructure plan that includes hundreds of billions of dollars devoted to building and repairing roads, bridges, mass transit, schools and other infrastructure.

“We’re encouraged by improving conditions in our end markets and are proactively managing supply chain risks,” said Caterpillar Chief Executive Jim Umpleby.

Strong momentum in China, Caterpillar’s other key market, is also likely to aid sales this year, as construction and manufacturing activity expands with the pandemic easing in the country.

Caterpillar’s equipment sales rose across its three primary segments, with sales in its construction industries unit increasing 27% to $5.46 billion.

The company reported an adjusted profit of $2.87 per share in the quarter ended March 31, compared with $1.65 per share a year earlier.

Total revenue rose 11.8% to $11.89 billion, above the average estimate of $11.09 billion, according to Refinitiv data.

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