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Caterpillar’s Profit Surges Amidst Strong Demand for Construction Equipment

Bruno T
Latest News
October 31 2023 03:43AM

On Tuesday, Caterpillar (NYSE:CAT) reported an increase in third-quarter earnings, driven by robust infrastructure investments in key markets that spurred demand for its premium construction equipment.

Before the market opened on Tuesday, the company’s shares were up by 3.3%.

The demand for heavy machinery has been on the upswing as the United States undertakes significant upgrades to its roads, railways, and other transportation infrastructure through a $1 trillion package approved by the Senate in 2021 during the Biden Administration.

Caterpillar’s profitability has also been positively impacted by effective cost management and price adjustments that have helped protect margins in the face of persistent inflationary pressures.

The company’s profit climbed to $2.79 billion, or $5.45 per share, compared to $2.04 billion, or $3.87 per share, in the same period a year ago.

For the quarter ending in September, this industry leader reported a 12% increase in sales, totaling $16.8 billion.