Caterpillar said third quarter sales and revenue were $ 12.4 billion, up 25% from the same period in 2020, when sales were $ 9.9 billion. .
The company attributed the increase to higher sales volume, changes in dealer inventory and “favorable pricing.” Dealers increased their inventories by $ 600 million during the quarter.
“Our global team continues to execute our long-term strategy for profitable growth while striving to mitigate supply chain challenges as we serve our customers,” said Jim Umpleby, President and CEO , in a prepared press release. “Our third quarter results reflect higher sales and revenues in our three main segments and in all regions.”
Caterpillar sales figures
- Construction industries: $ 4.1 billion, up 30%
- Resource industries: $ 1.8 billion, up 32%
- Energy and transportation: $ 4.2 billion, up 22%
Sales in North America totaled $ 5.5 billion for the quarter, up 25% from the third quarter of 2020. In the Construction segment, sales in North America increased due to volume higher sales and favorable price realization. The increase in sales volume is attributable to increased end-user demand resulting from improved non-residential construction, as well as continued strength in residential construction and the impact of changes in dealer inventories.
Operating profit for the third quarter was $ 1.7 billion, an increase of 69% over the $ 985 million in the third quarter of 2020. This increase is mainly due to higher sales volume high and favorable pricing, partially offset by increased sales, general and administrative (SG&A) and research and development (R&D) expenses as well as higher manufacturing costs.
Unfavorable manufacturing costs reflect higher variable labor and load, primarily freight, and higher manufacturing and material costs, partially offset by favorable cost absorption and lower warranty expenses. Cost absorption was favorable as inventories increased in the third quarter of 2021.
Caterpillar CFO Andrew Bonfield reviews the results below.