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However, shares for Texas-based manufacturer were down 3.2%
before the bell.
Demand for heavy equipment has been on the rise as the United
States upgrades its roads, railways and other transportation
infrastructure under a $1 trillion package approved by Congress
in 2021 under the Biden Administration.
Caterpillar's profit has also benefited from effective cost
controls and price hikes shielding margins amid ongoing
inflationary pressures.
The manufacturer's profit margins have been aided by a strong
order backlog for construction equipment and robust demand from
customers in oil and gas, power generation, rail and defense.
Last quarter executives said solid demand for heavy machinery
from construction and mining industries was expected to drive
full-year operating margin toward the top end of its prior
forecast.
Caterpillar's sales and revenue was up across all equipment
segments with its construction division recording the highest
bump a 12% rise in sales on the back of healthy demand in North
America, as the Biden Administration's $1.2 trillion
infrastructure law has spurred spending on U.S. roads, railways
and bridges.
The company has ramped up production to make up for sales missed
during the pandemic when components were unavailable, analysts
said. Yet, investors have grown concerned about dealer
inventories as general contractors forgo borrowing cash to
purchase equipment in an elevated interest rate environment.
Its profit rose to $2.79 billion, or $5.45 per share, outpacing
an analysts' forecast of $4.79.
The industry bellwether's sales for the quarter through
September rose 12% to $16.8 billion from $14.9 billion a year
earlier.
(Reporting by Bianca Flowers in Chicago and Shivansh Tiwary in
Bengaluru; editing by Devika Syamnath and Louise Heavens)
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