One region fuels 12% increase in construction sales for Caterpillar

A 2012 Caterpillar D10T dozer retrofitted with the Teleo kit on top at Teichert’s site in Tracy, Calif. (Photo: Telo)

Caterpillar has revealed that total sales for its Construction Industries segment was US$6.999 billion in the third quarter of 2023, an increase of US$723 million (12%) compared with US$6.276 billion in the third quarter of 2022.

Construction Industries’ profit was US$1.847 billion in the third quarter of 2023, an increase of US$638 million, or 53%, compared with the same quarter of 2022. The company said that this was mainly due to favorable price realisation.

North America was the region that drove sales for the OEM, with sales in the region up by 31% from the same quarter last year. In Caterpillar’s previous financial results North America was also the OEMs best-performing region.

Sales in Europe, the Middle East and Africa (EAME) were up by 8% compared to the same quarter last year with Asia/Pacific seeing sales fall by the same percentage. The region that saw the biggest decline in sales was Latin America, with sales in the region down by 31% in the third quarter of 2023 compared to the same quarter of 2023.

Caterpillar’s Resource Industries – which includes the sales of mining equipment – saw total sales of US$3.351 billion in the third quarter of 2023, an increase of $264 million, or 9%, compared with US$3.087 billion in the third quarter of 2022.

As was the case with construction sales, North America was the region that performed the best, with sales up 22% compared to the same quarter last year. Sales in Latin America were up by 6% but down in Europe, the Middle East and Africa (EAME) and Asia/Pacific by 3% and 1% respectively.

“I’d like to thank our global team for delivering another great quarter, as demonstrated by double-digit top-line growth, strong adjusted operating profit margin and robust ME&T free cash flow,” said Chairman and CEO Jim Umpleby.