Sales for Caterpillar’s construction segment up 40%
By Andy BrownAugust 03, 2021
Total sales for Caterpillar’s Construction Industries division were $5.6 billion in the second quarter, reflecting an increase of $1.6 billion - or 40% - over $4 billion in the same period one year ago.
This was due to higher sales volume, favorable price realization and currency impacts from the euro, Australian dollar and Chinese yuan.
Construction equipment sales increased in all regions for Caterpillar, with Latin America up 103% compared to the same quarter of 2020 with sales of $430 million. Sales in North America were up 56% to $2.5 billion while Europe, Middle East and Africa (EAME) saw a 38% rise in sales to $1.3 billion for the quarter.
Asia Pacific saw the smallest increase at 8% – although this is from a good level, as the region did perform comparatively well in the second quarter of 2020 – with sales of $1.3 billion.
The profit for Construction Industries was $1.0 billion in the second quarter of 2021, an increase of $506 million, or 98%, compared with $518 million in the second quarter of 2020.
The company’s Resource Industries – which includes mining equipment – had total sales of $2.5 billion in the second quarter of 2021, an increase of $753 million, or 41%, compared with $1.8 billion in the second quarter of 2020.
The company announced overall second quarter 2021 sales and revenues of $12.9 billion, a 29% increase compared with sales of $10 billion at the same time last year.
The world’s biggest construction OEM by sales also announced that operating profit margin was 13.9% for the second quarter of 2021, compared with 7.8% for the second quarter of 2020.
Caterpillar Chairman and CEO Jim Umpleby, said, “We’re encouraged by higher sales and revenues across all regions and in our three primary segments, which reflect continued improvement in our end markets.”