Sales for Caterpillar’s construction segment up 40%

Caterpillar’s construction segment saw good growth in the second quarter of 2021

Caterpillar has announced second quarter 2021 sales and revenues of US$12.9 billion, a 29% increase compared with sales of US$10.0 billion in the second quarter of 2020.

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.

The company’s Construction Industries’ total sales were US$5.6 billion in the second quarter of 2021, an increase of US$1.6 billion, or 40%, compared with US$4.0 billion in the second quarter of 2020. This was due to higher sales volume, favourable price realisation 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 US$430 million. Sales in North America were up 56% to US$2.5 billion while Europe, Middle East and Africa (EAME) saw a 38% rise in sales to US$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 strongly in the second quarter of 2020 – with sales of US$1.3 billion.

The profit for Construction Industries was US$1.0 billion in the second quarter of 2021, an increase of US$506 million, or 98%, compared with US$518 million in the second quarter of 2020.

The company’s Resource Industries – which includes mining equipment – had total sales of US$2.5 billion in the second quarter of 2021, an increase of US$753 million, or 41%, compared with US$1.8 billion in 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.”