Caterpillar reports second-quarter profit, revenue beat

Investing.com -- Caterpillar (NYSE:CAT) has reported second-quarter profit and revenue that topped analyst estimates, as the world's biggest construction equipment manufacturer was boosted by higher sales volumes in North America.

Operating income during the period jumped by 88% annually to $3.65 billion, beating Bloomberg consensus expectations of $2.94B. Revenue of $17.32B was also above projections of $16.39B.

Underpinning the results was a 22% increase in sales and revenues at the Texas-based company's key machinery, energy, and transportation unit to $16.55B. The division's performance was particularly solid in  North America, where the company said sales climbed by a third thanks to solid demand from end users.

Price increases also supported returns, Caterpillar noted, and helped offset an uptick in material costs. In a statement, Chairman and Chief Executive Officer Jim Umpleby said the group has continued to see "healthy demand."

Caterpillar's recent quarterly earnings have been supported by the Biden administration's infrastructure legislation, which has encouraged spending on construction equipment like excavators, bulldozers, and trucks.

However, concerns remain that a potential slowdown in the U.S. economy may weigh on commercial order activity, a major part of Caterpillar's business. The group warned that third-quarter sales and operating profit margin will be lower compared to the second quarter, but still higher than the corresponding period in the previous year.

Shares in Caterpillar pulled back from some early gains to trade slightly above the flatline in premarket U.S. dealmaking on Tuesday.