Caterpillar said sales and revenues totaled $12.4 billion in the third quarter, up 25 percent over the same period in 2020 when sales were $9.9 billion.
The company attributed the increase to higher sales volume, changes in dealer inventories, and “favorable price realization.” Dealers increased inventories by $600 million during the quarter.
“Our global team continues to execute our long-term strategy for profitable growth while working to mitigate supply chain challenges as we serve our customers,” said Jim Umpleby, chairman/CEO, in a prepared statement. “Our third-quarter results reflect higher sales and revenues across our three primary segments and in all regions.”
Caterpillar Sales Figures
- Construction Industries: $4.1 billion, up 30 percent
- Resource Industries: $1.8 billion, up 32 percent
- Energy & Transportation: $4.2 billion, up 22 percent
North American sales totaled $5.5 billion for the quarter, up 25 percent from Q3 2020. In the Construction segment, North American sales increased due to higher sales volume and favorable price realization. Higher sales volume was driven by higher end-user demand from improving non-residential construction, as well as continued strength in residential construction and the impact from changes in dealer inventories.
Operating profit for the third quarter was $1.7 billion, an increase of 69 percent compared with $985 million in Q3 2020. The increase was primarily due to higher sales volume and favorable price realization, partially offset by higher selling, general and administrative (SG&A) and research and development (R&D) expenses as well as higher manufacturing costs.
Unfavorable manufacturing costs reflected higher variable labor and burden, primarily freight, and higher period manufacturing and material costs, partially offset by favorable cost absorption and lower warranty expense. Cost absorption was favorable as inventory increased during the third quarter of 2021.
Caterpillar CFO Andrew Bonfield reviews results below.
Source: Caterpillar
