Caterpillar Inc. has reported sales and revenues of US$11.3 billion for 2Q17, compared with US$10.3 billion in 2Q16.
2Q17 profit per share was US$1.35, compared with US$0.93 per share in the second quarter of 2016. Excluding restructuring costs and a gain on the sale of an equity investment in IronPlanet, second-quarter 2017 adjusted profit per share was US$1.49, compared to second-quarter 2016 adjusted profit per share of US$1.09.
Caterpillar’s financial position continued to strengthen. Machinery, Energy & Transportation (ME&T) operating cash flow was US$2 billion during the quarter, and ME&T’s debt-to-capital ratio improved to 38.6%, compared with 41.7% at the end of the first quarter of 2017. In June, the company announced a quarterly cash dividend increase and ended the quarter with an enterprise cash balance of US$10.2 billion.
“Our team delivered an impressive quarter. As demand increased, we continued to control costs and generated higher profit margins,” said Caterpillar CEO Jim Umpleby. “While a number of our end markets remain challenged, construction in China and gas compression in North America were highlights in the quarter. Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions.”
As a result of increased demand across many end markets and disciplined cost control, Caterpillar is raising its 2017 outlook. Some risks remain in the outlook, including weakness in the Middle East and Latin America, as well as geopolitical and commodity risk.
In April 2017, Caterpillar provided an outlook range for full-year 2017 sales and revenues of US$38 billion to US$41 billion with a midpoint of US$39.5 billion. The company is raising its full-year 2017 expectations for sales and revenues to a range of US$42 billion to US$44 billion with a midpoint of US$43 billion.
For the full year of 2017, Caterpillar expects profit per share of about US$3.50 at the midpoint of the sales and revenues outlook range, or adjusted profit per share of about US$5.00. The previous outlook for 2017 profit was about US$2.10 per share at the midpoint of the sales and revenues outlook, or adjusted profit per share of about US$3.75. The company now expects to incur about US$1.2 billion of restructuring costs in 2017.
Read the article online at: https://www.worldcoal.com/mining/26072017/caterpillar-sees-high-sales-and-profit-in-2q17/
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