Salem Radio Network News Sunday, September 26, 2021

Business

Caterpillar earnings soar as global recovery boosts equipment demand

(Reuters) -Caterpillar Inc on Friday reported higher quarterly earnings as a recovery in global economic activity from pandemic lows drove up sales across all regions and businesses.

The company, an industrial bellwether and proxy for global economic activity, has been benefiting from higher infrastructure spending around the globe.

The global economy is expected to expand at 6.0% this year and 4.5% in 2022, according to Reuters polls but a majority of the economists flagged the latest coronavirus variants as the biggest risk to the outlook.

A run-up in commodity prices is also encouraging miners to invest in new machines.

The Illinois-based manufacturer of heavy machinery expects demand to remain strong in the current quarter. However, operating profit is forecast to moderate, hurt by supply chain challenges.

Adjusted profit for the second quarter came in at $2.60 per share, up from $1.27 per share a year earlier. Analysts surveyed by Refinitiv, on average, expected earnings of $2.40 per share.

Equipment sales rose 31% year-on-year in the quarter to $12.2 billion, helped by stronger demand in North and Latin America.

(Reporting by Rajesh Kumar Singh in Chicago and Abhijith Ganapavaram in Bengaluru; Editing by Sriraj Kalluvila and Louise Heavens)

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