Better than expected second quarter construction trading in a number of markets has seen Caterpillar raise its expectations for 2017.
Announcing figures for Q2, the OEM saw sales and revenue rise to US$11.3bn, compared with US$10.3bn 12 months ago, and a US$0.42 increase in profit per share for the same period.
“Our team delivered an impressive quarter. As demand increased, we continued to control costs and generated higher profit margins,” said Caterpillar CEO Jim Umpleby. “While a number of our end markets remain challenged, construction in China and gas compression in North America were highlights in the quarter. Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions.”
The positive results across a number of markets has led Caterpillar to reconsider its expectations for the 2017 year, with a more optimistic outlook predicted; back in April, the company announced its outlook for full year 2017 sales and revenues to be between US$38bn and US$41bn, but that has now been increased to a range of US$42bn and US$44bn.
“Given our performance in the first half of the year and current quotation and ordering activity, we are confident in raising our full-year 2017 outlook,” continued Umpleby. “We remain focused on serving our customers, delivering strong operational performance and executing our ongoing restructuring activities.
“During the second half of 2017, we anticipate making targeted investments in initiatives that are important to our future competitiveness, including enhanced digital capabilities and accelerating technology updates to our products. We intend to do this without adding to the structural costs we’ve worked so hard to streamline. These investments will prepare us to take advantage of the growth opportunities ahead.”
July 28, 2017
