trending Market Intelligence /marketintelligence/en/news-insights/trending/4mgvmqxibeqlcbsalsclva2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Caterpillar raises 2018 outlook on record Q2 profit


LCD Case Study: Streamlining Internal Processes with Automated Data Delivery


LCD Case Study: Using Leveraged Loan Data to Assess a Bank’s Portfolio Risk


LCD Case Study: Digging Deep on Leveraged Loans


EMEA Deal-Making Muted in Q4 2020, With No Mega Deals in Sight

Caterpillar raises 2018 outlook on record Q2 profit

Caterpillar Inc. raised its full-year earnings outlook as it delivered record second-quarter profit, although it warned that U.S. import tariffs could impact material costs by up to $200 million in the second half.

The heavy equipment and machinery maker posted profit attributable to common shareholders of $1.71 billion, or $2.82 per share, in the three months to June, compared with $802 million, or $1.35 per share, in the year-ago period.

Adjusted earnings came in at $2.97 per share in the second quarter, up from $1.49 per share a year ago. The S&P Capital IQ consensus mean estimate for normalized EPS was $2.74.

Operating profit increased to $2.17 billion from $1.18 billion on the back of higher sales volume.

Sales and revenues rose to $14.01 billion from $11.33 billion, helped by increases in machinery, energy and transportation, and financial products. Sales were also higher due to currency impacts, primarily from a stronger euro and Chinese yuan, the company said.

Caterpillar repurchased $750 million of common stock during the second quarter.

The company said full-year 2018 profit per share is projected in the range of $10.50 to $11.50, up from earlier guidance of $9.75 to $10.75. Adjusted profit per share is estimated at $11.00 to $12.00, compared with a prior forecast of $10.25 to $11.25.

Caterpillar said recently imposed tariffs could impact material costs in the second half by approximately $100 million to $200 million. It also warned against continued supply chain challenges, although it plans to offset these through announced mid-year price increases.