Caterpillar Inc (NYSE:CAT, XETRA:CAT) shares jumped 11% to $923 in pre-market trading on Tuesday after booming demand for power-generation equipment helped the industrial group deliver record quarterly revenue.
Sales increased 24% to $20.5 billion in the second quarter, beating the $19.3 billion forecast and marking Caterpillar's first quarter with revenue above $20 billion.
The increase reflected $3.1 billion of additional sales volumes and a $595 million benefit from higher prices. Demand linked to artificial intelligence infrastructure boosted its power-generation business, adding to broader growth across Caterpillar's three main divisions.
Adjusted earnings per share surged 73% to $8.17, well ahead of the $6.17 expected by analysts. Reported earnings per share rose to $7.77 from $4.62 a year earlier.
Profitability also improved sharply. Caterpillar's operating margin widened to 20.9% from 17.3%, while the adjusted margin reached 21.9%, compared with 17.6% last year.
Restructuring costs increased following the disposal of some businesses outside the US, but did little to overshadow the stronger operating performance.
Chief executive Joe Creed said: "This is the first time in company history that we have generated over $20 billion in sales and revenues in a single quarter."
Caterpillar generated $4.4 billion of operating cash flow and ended the quarter with $6.7 billion in cash. It returned $2.2 billion to shareholders, comprising $1.5 billion of share repurchases and $700 million of dividends.
