Caterpillar profit soars to new record on strong sales volume and pricing

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The company’s products are used in a variety of industries, including construction, mining, forestry, and energy. Caterpillar ($NYSE:CAT)’s strong third quarter results were driven by higher sales volume and stronger pricing. Adjusted earnings of $3. 95 a share for Q3 beat Wall Street estimates by $0. 21. Looking ahead, Caterpillar is well-positioned to continue its success. The company is focused on operational excellence and delivering value to its customers.

Additionally, Caterpillar is investing in new products and services, as well as expanding its global footprint.

Earnings

Caterpillar Inc. reported strong results for its second quarter of fiscal year 2022, with total revenue of $54.0 billion and net income of $6.8 billion. This represents a 5.9% increase in total revenue and a 4.6% increase in net income compared to the same period last year. Caterpillar’s strong performance was driven by increased sales volume and pricing across its businesses. The company’s total revenue has grown from $41.7 billion to $54.0 billion over the past three years, thanks to continued demand for its products and services around the world.

Looking forward, Caterpillar remains confident in its ability to deliver strong results and drive shareholder value. The company is well-positioned to benefit from continued global economic growth and is committed to investing in its businesses to support long-term growth.

Share Price

The company’s stock rose 7.7 percent on the news. Caterpillar’s strong results were driven by higher sales volume in its construction and mining businesses, as well as higher prices for its products.

VI Analysis

CATERPILLAR INC is a low risk investment in terms of financial and business aspects, based on VI Risk Rating. The company’s fundamentals reflect its long term potential. However, VI App has detected 2 risk warnings in income sheet, balance sheet. Register on vi.app to check it out.

VI Peers

Caterpillar Inc. is one of the world’s largest manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company operates in more than 500 locations across six continents. Caterpillar’s products are used in a variety of industries, including construction, mining, forestry, and energy. The company competes with a number of other manufacturers, including CNH Industrial NV, Deere & Co, AGCO Corp, and others.

– CNH Industrial NV ($NYSE:CNHI)

CNH Industrial N.V. is a holding company, which engages in the manufacture of agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles. It operates through the following segments: Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain, and Financial Services. The Agricultural Equipment segment produces and sells agricultural tractors, combines, haytools, sprayers, forage harvesters, implements and related replacement parts. The Construction Equipment segment manufactures and sells backhoe loaders, small and medium tracked excavators, wheeled excavators, skid steer loaders, compact track loaders, wheel loaders, telehandlers, dumpers, motor graders, soil and asphalt compactors, and other equipment. The Commercial Vehicles segment produces and sells light, medium, and heavy-duty trucks under the Iveco brand. The Powertrain segment manufactures and sells engines, transmissions, axles, and components. The Financial Services segment offers wholesale and retail financing products to customers and dealers to purchase equipment. The company was founded on November 12, 2012 and is headquartered in London, the United Kingdom.

– Deere & Co ($NYSE:DE)

As of 2022, Deere & Co has a market cap of 112.07B and a Return on Equity of 25.53%. The company is engaged in the manufacturing and distribution of equipment used in agricultural, construction, forestry, and turf care.

– AGCO Corp ($NYSE:AGCO)

AGCO Corp is a publicly traded company that manufactures and sells agricultural equipment and related products. As of 2022, the company had a market capitalization of 8.31 billion dollars and a return on equity of 16.62%. The company’s products include tractors, combines, hay tools, sprayers, forage equipment, and more. AGCO Corp is headquartered in Duluth, Georgia, and has operations in North America, Europe, South America, and Asia.

Summary

Caterpillar Inc. is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company’s stock has been a strong performer in recent years, as its sales and profits have soared to new records on the back of strong sales volume and pricing.