Caterpillar Inc. (NYSE: CAT) on Monday posted second-quarter revenue and earnings that beat analysts’ estimates. The Company also raised its full-year profit forecast due to strong demand for its equipment.
The Deerfield, Illinois-based company said revenue rose 24% to USD 14 Billion in the second quarter. Adjusted second-quarter earnings per share was $2.82 per share, up from $1.35 per share a year earlier.
Analysts’ polled by Thomson Reuters had projected earnings of $2.73 per share on revenue of USD 13.89 Billion.
“Caterpillar delivered record second-quarter profit per share,” said Caterpillar CEO Jim Umpleby. “Our team is doing a great job executing our strategy for profitable growth, focusing on operational excellence, expanded offerings and services.”
Caterpillar also raised its earnings outlook for 2018 as the continued strength in machinery sales offset the increased material costs due to tariffs. The Company now expected 2018 adjusted profit per share at a range of $11 to $12, up from its previous outlook of $10.25 to $11.25.
The Company expects the imposed tariffs will raise its material costs of USD 100 Million to USD 200 Million in the second half of this year. Caterpillar said they would pass the increasing cost by raising the price.
“Based on outstanding results in the first half of the year and continued strength in many of our end markets, Caterpillar is again raising our profit outlook for 2018. We remain focused on operational excellence, cost discipline and investing for long-term profitable growth,” said Umpleby.