North America strong for Caterpillar

By Murray Pollok28 April 2022

Caterpillar has reported a 14% increase in first quarter sales to US$13.6 billion, driven by healthy growth in its resource, construction and energy/transport divisions.

Operating profits of $1.85 billion were up 2% year-on-year, with higher prices and volumes almost offset by higher material and freight costs.

Cat said higher prices and volumes offset supply chain costs in the first quarter of 2022.

Cat’s Chairman and CEO Jim Umpleby said he was proud of the double-digit growth performance, which had been achieved “despite ongoing supply chain challenges.”

There was little mention of the impact of the war in Ukraine – which began two months into the quarter - other than a higher reserve for credit losses in Ukraine and Russia at Cat Financial Products. The reserve has increase by $20 million to $347 million compared to the end of the first quarter in 2021.

Sales at the construction division were up 12% year on year, led by a 28% rise in North America, +60% in Latin America and +18% in EAME. Lower demand in China led to a 21% reduction in revenues for Asia Pacific, although there was growth in most other Asian markets.

The resources segment saw a 30% increase compared to the first quarter or 2021, with sales up significantly in every region except Latin America. Resource revenues in North America grew by 55% in the period.

Umpleby said; “We remain focused on supporting our customers and executing our strategy for long-term profitable growth. Our strong balance sheet allowed us to repurchase shares and pay dividends totalling $1.4 billion in the quarter.”

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
Versatile compact loaders
International Construction looks at innovation in compact loaders
How is construction becoming more sustainable?
Sustainable practices in construction are on the up, and the industry is adopting new technologies to reduce emissions
How can ground penetrating radar benefit construction?
John Rodgman, managing director of Borehole Solutions looks at the capabilities of the technology
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA