Sales in Caterpillar’s Construction Industries segment increased in all regions except Latin America in the third quarter of 2018.
The company said that total sales in the division were $5.68 billion (€5.00 billion) in the third quarter, compared with $4.89 billion (€4.31 billion) in the third quarter of 2017. It said the increase was mostly a result of higher sales volumes for construction equipment.
In North America, the sales increase was said to be mainly thanks to higher demand for new equipment, primarily to support oil and gas activities, including pipelines, and non-residential building construction activities.
It reported that construction activities remained weak in Latin America, though.
Sales increased in EAME (Europe, Africa and Middle East), it said, as infrastructure and building construction activities drove higher demand across several countries in the region.
Sales in Asia/Pacific were higher across the region, and Caterpillar said the most significant impact had been from improved demand in China, including an increase in dealer inventories from low levels, stemming from increased non-residential building construction and infrastructure activities.
Caterpillar said its profit in the Construction Industries segment was $1.06 billion (€931.63 million) in the third quarter of 2018, compared with $884 million (€778.38 million) for the same period in 2017. The increase in profit was a result of higher sales volume, partially offset by higher manufacturing costs, it said. Manufacturing costs were reported to be higher primarily as a result of increased material and freight costs.
The parent group, Caterpillar Inc, is claiming a record third-quarter profit per share in the company’s history, with third quarter 2018 sales and revenues of $13.5 billion (€11.87 billion), compared with $11.4 billion (€10.03 billion) in the third quarter of 2017 – a rise of 18%.
It reported a third quarter profit per share of $2.88 (€2.53). Profit per share was $1.77 (€1.56) in the third quarter of 2017.
CEO Jim Umpleby said, “This was the best third-quarter profit per share in our company’s history. Our global team continues to do excellent work focusing on our customers’ success and executing our strategy for profitable growth.”