Famous company makes machinery for the construction, mining and oil and gas industries

New York (Reuters): Caterpillar (CAT.N), opens new tab beat Wall Street estimates for second-quarter profit on Tuesday, as higher prices on its larger excavators and other equipment countered moderating demand in North America.
Shares of the company, known for its ubiquitous yellow excavators, rose 4% in premarket trade after forecasting full-year adjusted operating profit to be higher than it had previously anticipated. Peer Deere (DE.N), opens new tab rose 2%.
Caterpillar, which makes machinery for the construction, mining and oil and gas industries, reported a favorable price realization of $578 million in the second quarter.
"Caterpillar's pricing strength will continue to hold a steady base for their profit forecasts, but softening order volume compared to 2023 highlights uncertainty in markets outside of the US, particularly in China," Third Bridge analyst Ryan Keeney said.
Higher prices on its equipment have shielded the company's profits against rising manufacturing costs.
Overall sales in North America were up 1%, while sales in its construction equipment business were flat in the region.
Benefits from President Joe Biden's 2021 infrastructure law, a $1 trillion enactment aimed at upgrading roads, bridges and other transport infrastructure, are beginning to taper after helping the company weather weak sales in other regions.
Meanwhile, second-quarter equipment sales in Asia-Pacific region declined 9%, while they fell 16% in Europe, Africa and Middle East. Latin America was a bright spot with a 5% bump in sales.
The decrease in sales volume was mainly driven by the impact from changes in dealer inventories, the company said. Dealer inventory decreased during the second quarter of 2024, compared with an increase during the same period a year earlier.
China's troubled real estate market has pressured infrastructure spending in the country, resulting in a decline in Caterpillar's sales for the past several quarters.
The company also cited the hit from a weak Japanese yen for the decline in the Asia-Pacific region.
Caterpillar reported an adjusted profit per-share profit of $5.99 in the second quarter, compared with analysts' average estimates of $5.54
The company said sales and revenue for the quarter through June fell to $16.7 billion from $17.3 billion a year earlier, in line with Wall Street expectations.

US tariff hikes may slow global growth: Russian central bank
- 8 hours ago

Self-driving taxis coming to Dubai by 2026, says RTA
- 13 hours ago

First Alert’s new smart smoke alarm is meant to be a Google Nest Protect replacement
- an hour ago

Yale’s new smart lock can match your Google Nest doorbell
- an hour ago

From a famed Russian basketball academy to Provo, Egor Demin is dialed in
- 13 hours ago

Google discontinues Nest Protect smoke alarm and Nest x Yale door lock
- an hour ago

Naqvi briefs PM Shehbaz on security, others issues
- 9 hours ago

Judge dismisses Samsung’s smart ring lawsuit against Oura
- an hour ago

Men's Final Four predictions, previews for Auburn-Florida, Duke-Houston
- 13 hours ago

PSL X anthem ‘X Dekho’ unveiled
- 9 hours ago

Haaland's nightmare game, Napoli back in Serie A title race, RB Leipzig chaos, more
- 13 hours ago

Minus JuJu, USC flexes 'chemistry,' bounces KSU
- 13 hours ago