Caterpillar results boosted by strong demand, pricing

The National Times - Caterpillar results boosted by strong demand, pricing

ECONOMY 01.08.2023

Caterpillar results boosted by strong demand, pricing / Photo: © GETTY IMAGES NORTH AMERICA/AFP/File

Caterpillar reported strong second-quarter profits Tuesday behind robust demand for industrial equipment and an improving cost environment that boosted profit margins.

Change text size:

The company -- an industrial bellwether tied to the construction, mining, energy and other sectors -- also offered an upbeat forecast, saying that 2023 profit margins would be "close to the top" of the forecast.

Chief Executive Jim Umpleby said the results reflected "healthy demand across most end markets" for Caterpillar machines.

"We're closely monitoring economic conditions, but we do feel good about the business," Umpleby told analysts.

Profits were $2.9 billion, up nearly 75 percent on the year-ago level as revenues jumped 22 percent to $17.3 billion.

Profit margins topped estimates due to improved volumes and lower manufacturing costs, including freight, Umpleby said.

The operating profit margin was 21.1 percent, up from 13.6 percent in the year-ago period.

Umpleby described the supply chain as improving, enabling improvements in output.

"However, areas of challenge remain, particularly for large engines, which impacts energy and transportation and some of our larger machines," he said.

Shares jumped 7.2 percent to $284.33 in morning trading

Caterpillar "unearthed excellent Q2 results despite economic unease," said Briefing.com.

"Although macroeconomic uncertainties will likely liner for the foreseeable future, construction activity is looking healthy, especially in North America and the Middle East."

F.Morgan--TNT

Bilfinger Reports Surge in Orders Amid Profitability Pressures

German industrial services group Bilfinger has reported one of its strongest quarterly order intakes in a decade, with new business rising 25% to £1.2 billion in the third quarter. The surge was driven by energy sector demand, though the company noted that profitability declined as customers delayed investment decisions amid economic uncertainty.

Social Security Tax by State in 2026: Which States Tax Retirement Benefits?

As of 2026, eight U.S. states continue to levy taxes on Social Security retirement benefits, creating a complex financial landscape for retirees. While the Congressional Budget Office estimates that just over half of all beneficiaries will pay federal income tax on their payments, state-level rules vary significantly. Income-based exemptions in these states offer some relief, but the final amount retirees keep depends on a combination of federal thresholds, other retirement withdrawals, and specific state regulations.

Drive Finance Raises EGP 1.5bn via Bond Issuance for Expansion

Drive Finance, the non-bank financial services arm of GB Corp, has successfully closed a EGP 1.5 billion bond issuance with a 13-month maturity. The company stated that the transaction is designed to diversify funding sources and support expansion in its core consumer finance and factoring operations.

First-time boat buyers advised to assess full ownership costs

Buying a first boat is one of those purchases that arrives with a particular quality of excitement that makes careful financial planning feel like an obstacle rather than a preparation. The boat is there, it’s the right size, it’s in reasonable condition, and the idea of being on the water by the weekend is considerably more compelling than the idea of spending another two hours reading about comparison rates.