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Caterpillar reported a 17% jump in third-quarter sales Thursday as demand increased across its major businesses, including power-generation equipment used in data centers.
The heavy-equipment maker said sales and revenues reached $20.682 billion, up from $17.638 billion a year earlier. Profit per share rose to $7.13 from $4.88, while operating profit increased 38% to $4.214 billion.
Chairman and Chief Executive Joe Creed said the quarter included strong order rates and a record backlog. The earnings release did not put a dollar figure on that backlog.
Power generation sales climb 30%
Power-generation sales rose 30% to $3.421 billion. Caterpillar said the increase came mainly from turbines and turbine-related services and from large reciprocating engines, primarily for data-center applications.
The broader Power & Energy segment reported sales of $8.784 billion, up 18%, and segment profit of $2.143 billion, up 31%. Its operating businesses also recorded growth in oil-and-gas and industrial applications.
Growth extended beyond power equipment. Construction Industries sales rose 18% to $7.983 billion, while Resource Industries sales increased 15% to $4.615 billion. Caterpillar said higher companywide sales volume was mainly driven by increased equipment sales to end users.
Profit gains include tariff recoveries
Caterpillar’s operating profit margin increased to 20.4% from 17.3%. Operating profit included $128 million in recoveries of tariffs imposed under the International Emergency Economic Powers Act.
Adjusted profit per share, which excluded restructuring costs, was $7.20, compared with $4.95 a year earlier. Adjusted operating profit margin was 20.6%, up from 17.5%. Those adjusted figures are non-GAAP measures.
Higher costs remained a pressure in the mining-equipment business. Resource Industries recorded $208 million in unfavorable manufacturing costs, which the company said primarily reflected higher material costs, including tariffs.
Enterprise operating cash flow was $4.4 billion in the quarter, and Caterpillar ended September with $7.9 billion in enterprise cash. The company said its earnings webcast would begin at 8:30 a.m. Eastern on Thursday.
JBizNews Desk | Irving, Texas
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