Caterpillar Inc. (NYSE:CAT) has reported a strong rise in first-quarter sales and revenues as it benefitted from favourable price realization and higher sales volumes.
The mining and construction equipment manufacturer, which is often viewed as a barometer of the economy, grew revenues by 17% to $15.9 billion for the three months to March 31, 2023, beating Wall Street estimates for $15.1 billion. Sales volumes were driven by higher sales of equipment to end users, partially offset by lower services sales volumes, the company added.
Its operating profit margin improved to 17.2% from 13.7% in 1Q 2022, while its adjusted profit per share jumped 70% to $4.91, above the $3.80 expected by the Street. The company noted that restructuring costs including the impact of its divestiture of its Longwall business are excluded from the adjusted earnings.
Enterprise operating cash flow reached $1.6 billion, and the company ended the first quarter with $6.8 billion of enterprise cash. During the quarter, the company said it paid dividends of $600 million and repurchased shares worth $400 million.
"I'd like to thank our global team for their strong operational performance while serving healthy demand during the first quarter,” Caterpillar chairman and CEO Jim Umpleby said in the earnings statement.
“We achieved double-digit top-line growth and record adjusted profit per share while generating strong ME&T free cash flow. Our team remains focused on supporting our customers as we execute our strategy for long-term profitable growth.”
The company’s shares were 0.4% up in pre-market trading.
Contact the author at stephen.gunnion@proactiveinvestors.com