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• Retail new business volume fell by 1% or $30 million to $2.78 billion
Caterpillar Inc. (NYSE: CAT) reported a better-than-expected quarterly profit and revenue for the first quarter of 2022, pushed by price hikes. The company results however showed China sales and demand slumping amid fresh lockdowns in the country.
In the company statement, Caterpillar mentioned that the retail new business volume fell by 1% or $30 million to $2.78 billion, from the first quarter of 2021. The decrease was driven by lower volume in Asia/Pacific and mining. The increases in North and Latin America partially offset the lower volumes.
China accounts for 5% to 10% of Caterpillar’s total sales but the results signal the threat of an economic slowdown in the world’s second-largest economy.
Rising oil and commodity prices have benefited the mining and construction giant as a pick up in drilling and excavating activities has driven mining and oil industries to spend more on machinery.
The company’s revenue was reported as $13.59 billion, rising about 14% and beating estimates of about $13.4 billion.
Adjusted earnings were reported as $2.88 per share beating analysts’ estimate of $2.60 per share.
The company was optimistic about its margins in the second half of the year compared to the first six months of 2022. It expects price increases to more than offset rising manufacturing cost for the year.
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Source: Caterpillar