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Caterpillar (NYSE:CAT) -3.8% pre-market on Tuesday after reporting better than expected Q2 adjusted earnings while revenues rose 11% Y/Y to $14.2B but were slightly short of consensus, as higher sales volume and favorable pricing were partially offset by unfavorable currency impacts primarily related to the euro, Australian dollar and Japanese yen.
Q2 net income rose to $1.67B, or $3.15/share, from $1.41B, or $2.56/share, in the year-earlier quarter, and Q2 operating profit margin fell slightly 13.6% from 13.9% in the same quarter last year.
The company reported higher sales across its three primary divisions: Construction Industries rose 7% Y/Y to $6.03B, Energy & Transportation increased 15% to $5.71B, Resource Industries +15% to $2.96B.
But construction segment profit fell 4% Y/Y to $989M, as favorable price realization was offset by lower sales volume and higher manufacturing and freight costs; profit in energy & transportation fell 11% to $659M, mainly due to unfavorable manufacturing costs and higher SG&A and R&D expenses, while resources rose 2% to $355M.
Caterpillar (CAT) said it expects adjusted operating profit margin will improve in H2, with sales rising from higher volumes and price realization.
Caterpillar's (CAT) stock price return shows a 6% YTD loss and a 5% decline during the past year.