Caterpillar posts record 1Q profits amid fears of global economic slowdown
Rosecliff Capital founder Mike Murphy, Fox News contributor Liz Peek and FBN’s Susan Li on the impact of China’s economic slowdown and concerns over the global economy on stocks.
Caterpillar on Wednesday reported record first-quarter profits amid higher sales, results that could ease some concerns over the prospects of a global economic slowdown given the firm’s sprawling international operations.
Revenue at the Deerfield, Illinois-based company rose to $13.5 billion in the three months through March, beating analyst projections. Meanwhile, profits were $1.9 billion, or $3.25 per share, higher than Wall Street anticipated.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CAT | CATERPILLAR INC. | 379.63 | +3.43 | +0.91% |
In a statement, CEO Jim Umpleby touted Caterpillar’s strategy for growth through “investing in services, expanding our offerings and improving operational excellence.”
Caterpillar raised its 2019 profit outlook to a high of $13.06 per share.
Overall, total construction sales grew 3 percent to $5.9 billion, supported largely by a 13 percent growth in North America spurred by increased road construction. Meanwhile, sales fell in all other major markets, including China and Europe.
Profits in the sector fell to $1 billion due to, among other things, higher raw material costs as a result of President Trump’s double-digit tariffs on steel and aluminum imports.
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A 52 percent growth in mining sales in China also helped underscore an 18 percent rise in sales in the sector. Energy and transportation sales remained flat year-over-year.