Caterpillar Inc has reported mixed fourth-quarter results, with revenue growth exceeding expectations while its profits came under pressure amid rising manufacturing costs.
The manufacturer of construction and military equipment achieved a 20% increase in its fourth-quarter sales and revenue, up from $13.8 billion in 4Q 2021 to $16.6 billion. This was ahead of the consensus market expectation of $15.8 billion.
The increase was attributed to favorable price realization and higher sales volume partially offset by unfavorable currency impacts related to the euro, Japanese yen and Australian dollar.
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However, the company’s profit fell to $1.45 billion, or $2.79 per share, from $2.12 billion, or $3.91 per share, in the year-ago quarter.
Adjusted profit per share came in at $3.86 in 4Q 2022, up from $2.69 per share for the year-ago quarter.
Caterpillar noted that this quarter included an unfavorable ME&T foreign currency impact of $0.41 per share, which negatively impacted profit per share and adjusted profit per share.
For the full year 2022, the company reported sales and revenue of $59.4 billion, up from $51 billion in 4Q 2021.
It posted a full-year profit per share of $12.64, up from $11.83 in the year-ago quarter, and an adjusted profit per share of $13.84, compared to $10.81 in the fourth quarter of 2021.
Caterpillar's shares fell 4.4% following the release of its quarterly results, trading at about US$250 per share at mid-morning on Wednesday.
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