Caterpillar Reports 24% Increase in Sales and Revenues in Q2/18



Caterpillar reported Q2/18 sales and revenues of $14.0 billion, compared with $11.3 billion in Q2/17, marking a 24% increase. Q2/18 profit per share of $2.82 was a second quarter record. Profit per share was $1.35 in Q2/17. Adjusted profit per share in Q2/18 was $2.97, compared with Q2/17 adjusted profit per share of $1.49.

During Q2/18, Machinery, Energy & Transportation (ME&T) operating cash flow was $2.1 billion, and the company repurchased $750 million of Caterpillar common stock. In June 2018, the board of directors approved an increase to the quarterly dividend of 10% to $0.86 per share. Q2/18 ended with an enterprise cash balance of $8.7 billion.

“Caterpillar delivered record second-quarter profit per share,” Caterpillar CEO Jim Umpleby said. “Our team is doing a great job executing our strategy for profitable growth, focusing on operational excellence, expanded offerings and services.”

The company is raising its 2018 profit per share outlook to a range of $10.50 to $11.50. Excluding restructuring costs of about $400 million, the company expects adjusted profit per share to be in a range of $11.00 to $12.00. The prior profit per share outlook range was $9.75 to $10.75, and the adjusted profit per share outlook range was $10.25 to $11.25.

“Based on outstanding results in the first half of the year and continued strength in many of our end markets, Caterpillar is again raising our profit outlook for 2018,” Umpleby said. “We remain focused on operational excellence, cost discipline and investing for long-term profitable growth.”

Caterpillar noted that most end markets continued to improve, with order rates healthy and the backlog remaining solid in the quarter. For certain applications, particularly in oil and gas and mining, the company said it is seeing strong demand and taking orders for delivery well into 2019.

Caterpillar is raising its outlook range primarily due to the continued strength in many end markets. Recently imposed tariffs are expected to impact material costs in the second half of the year by approximately $100 million to $200 million, and the company expects supply chain challenges to continue to pressure freight costs. However, the company intends to largely offset these impacts through announced mid-year price increases.


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