Sales for Caterpillar’s construction division drops in Q2

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The US-based OEM revealed that Construction Industries’ total sales were US$6.683 billion in the second quarter of 2024, a decrease of US$471 million.

Sales in North America were at approximately the same level as in the second quarter of last year. Sales declined in EAME (Europe, Africa and the Middle East) by 27% and in Asia Pacific by 15%. The only region to see growth was in Latin America, where sales increased by 20%.

Caterpillar said that the decline in sales was “mainly driven by the impact from changes in dealer inventories.” In Asia Pacific it highlighted, “unfavourable currency impacts primarily related to the Japanese yen.”

Construction Industries’ segment profit was $1.741 billion in the second quarter of 2024, a decrease of $62 million, or 3%, compared with $1.803 billion in the second quarter of 2023.

Despite the decline, Chairman and CEO Jim Umpleby thanked his team for, “delivering another strong quarter, including higher adjusted operating profit margin, record adjusted profit per share and robust ME&T free cash flow.”

The OEM’s Resource Industries segment, which includes quarrying and mining equipment, saw total sales of $3.206 billion in the second quarter of 2024, a decrease of $357 million, or 10%, compared with $3.563 billion in the second quarter of 2023.

All geographic regions saw a decrease in sales: North America by 10%, Latin America saw a 3% decline, EAME saw sales down by 15% while Asia Pacific sales were down 12%. The decrease in sales volume was again attributed to “the impact from changes in dealer inventories.”

As a company, Caterpillar announced second-quarter 2024 results of $16.7 billion, a 4% decrease compared with $17.3 billion in the second quarter of 2023.

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