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Shares for the Texas-based company were up 6.3% before the bell.
Expenditure on heavy machinery remains robust among commercial
clients. Dealer inventories fell for the first time in four
quarters in an encouraging sign that spending remains resilient
helped by President Joe Biden's $1 trillion infrastructure law
to upgrade roads, bridges and other transportation routes.
The manufacturer's profit margins have been aided by a $28.1
billion order backlog for construction equipment and demand from
customers in oil and gas, power generation, rail and defense in
the past year.
Despite drilling at North American oil rigs showing signs of
weakening, the industrial powerhouse is still benefiting from
higher purchase volumes for its haul trucks and other mid- to
large-sized mining equipment.
Purchases of heavy machinery from construction and mining
industries aided its full-year operating margin. Margins for the
world's largest construction company in the energy and
transportation segment rose 21% from the year prior.
Caterpillar's earnings have also been shielded by effective cost
controls and price hikes to fend off inflationary pressures.
The company's fourth-quarter profit rose to $2.68 billion, or
$5.28 per share, from $1.45 billion, or $2.79 per share, a year
earlier.
Sales and revenue for the quarter ended Dec. 31 rose to $17.1
billion from $16.6 billion.
(Reporting by Shivansh Tiwary in Bengaluru and Bianca Flowers in
Chicago; editing by Sriraj Kalluvila and Jason Neely)
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