Caterpillar Inc (NYSE:CAT, ETR:CAT1) shares rumbled higher after the maker of construction and mining equipment reported higher than expected quarterly profit despite a slip in sales.
Adjusted per share profit for the second quarter of 2024 came in at $5.99, Caterpillar reported on Tuesday, against $5.55 last year and above consensus expectations for $5.54.
This came in spite of a 4% fall in revenue to $16.7 billion, which Caterpillar attributed to lower sales volumes.
Higher prices partially helped to offset this fall, the company added, with adjusted operating profit margins climbing to 22.4% from 21.3% in 2023.
“Our results continue to reflect the benefit of the diversity of our end markets as well as the disciplined execution of our strategy for long-term profitable growth,” chief executive Jim Umpleby said.
Enterprise operating cash flow sat at $3.0 billion for the quarter, with $1.8 billion and $0.6 billion deployed for share repurchases and dividend payments respectively.
Shares rose 4% to $331 in morning trading.
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