Caterpillar says it saw a 3-percent increase in sales and revenues in the second quarter compared to the same period last year, for an increase of $400 million.
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In North America, the company’s Construction Industries segment grew 28 percent in sales and revenue in 2Q compared with the same period last year. Resource Industries in the region grew 32 percent in sales and revenue.
“Sales and revenues increased this quarter, including a record performance from Construction Industries, which reflected our strong competitive position globally,” says Caterpillar Chairman and CEO Jim Umpleby.
“In North America, [Construction Industries] sales increased primarily due to higher demand, including the favorable impact of dealer inventories, and favorable price realization,” says Caterpillar in its release. Globally, the Construction Industries’ profit was a record $1.247 billion in the second quarter, an 8-percent increase over second quarter 2018.
Caterpillar says dealer machine and engine inventories increased by about $500 million during the quarter, compared with a $100 million increase last year. At the end of 2Q, the order backlog was $15 billion, about $1.9 billion lower than the first quarter of 2019.
Cat says that it continues to expect modest growth in 2019, assuming there is an oil and gas market recovery near the end the year and dealers have worked through higher machine inventory levels. In addition, since higher restructuring costs were incurred in the second quarter, the company expects significantly lower restructuring costs for the rest of the year.
“We expect our profit per share in 2019 to be another record,” adds Umpleby. “We have the right strategy in place to deliver long-term profitable growth through our continued focus on strategic investments, including growing services and expanding offerings. We will also continue to focus on driving operational excellence including a flexible and competitive cost structure.”