Cat Posts Record Q2 Numbers
Caterpillar recently detailed its Q2 2018 performance in a report stuffed with good news. Among the results is a 24% increase in sales for 2018’s second quarter versus the same period in 2017 and record second-quarter profit-per-share numbers. Cat also repurchased $750 million in Caterpillar common stock and increased in its profit outlook for 2018.
Oil, Gas & Mining Thrive
Cat’s reported Q2 2018 sales and revenues reached $14 billion, easily topping Q2 2017’s $11.3 billion. In addition to most end markets continuing to improve, Cat says its order rates remained healthy and its backlog stayed solid during the quarter. In particular, Cat saw strong demand in the oil, gas, and mining sectors, adding that it is “taking orders for delivery well into 2019.”
Cat also experienced a record second-quarter profit per share, which increased from $1.35 to $2.82 quarter over quarter. Cat’s adjusted profit per share for Q2 2018 is $2.97, up from Q2 2017’s $1.49. Caterpillar CEO Jim Umpleby says the company is “doing a great job executing our strategy for profitable growth, focusing on operational excellence, expanded offerings, and services.”
A Positive Outlook
Caterpillar also increased its profit per share outlook for 2018 to a range of $10.50 to $11.50 from a previous $9.75 to $10.75. When factoring out about $400 million in restructuring costs, Cat anticipates adjusted profit per share to reach a range $11.00 to $12.00, up from a previous $10.25 to $11.25. Although Cat expects recently imposed tariffs to impact its material costs in 2018’s second half by about $100 to $200 million and supply chain challenges to continue to impact freight costs, the company plans to “largely offset these impacts through announced mid-year price increases.”
Source: Caterpillar