Caterpillar reported a robust Q3 2021, saying it saw a 25% increase in sales and revenues over the same quarter last year.
Sales and revenues rose from $9.9 billion in 3Q 2020 to $12.4 billion this year, prompted by higher sales volume driven by end-user demand for equipment and services, the impact of changes in dealer inventories and favorable pricing. Dealers decreased inventories by $600 million during Q3 2020 compared with$300 million during the same quarter this year.
Cat also noted its operating profit for the quarter was $1.66 billion, an increase of 69% compared with the same period in 2020. This despite higher manufacturing costs because of higher variable labor, freight and material costs.
Caterpillar’s Construction Industries Q3 2021 sales by geographic region.Caterpillar
Cat’s global construction industries segment saw a 30% year-over-year increase for the quarter, realizing $5.25 billion in total sales, an increase of $1.99 billion over Q3 2020.
The company’s North American construction markets increased by 36% year over year, driven by higher end-user demand from improving non-residential construction, continued strength in residential construction and dealer inventory changes.
The only geographical construction industries market to see a decrease was Cat’s Asia/Pacific region, due to lower sales volume and dealer inventory decreases, particularly in China.
“Our global team continues to execute our long-term strategy for profitable growth while working to mitigate supply chain challenges as we serve our customers,” says Jim Umpleby, chairman and CEO. “Our third-quarter results reflect higher sales and revenues across our three primary segments and in all regions.”
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