Caterpillar reported a robust Q3 2021, saying it saw a 25% increase in sales and revenues over the same quarter last year.
Sales and revenues rose from $9.9 billion in 3Q 2020 to $12.4 billion this year, prompted by higher sales volume driven by end-user demand for equipment and services, the impact of changes in dealer inventories and favorable pricing. Dealers decreased inventories by $600 million during Q3 2020 compared with$300 million during the same quarter this year.
Cat also noted its operating profit for the quarter was $1.66 billion, an increase of 69% compared with the same period in 2020. This despite higher manufacturing costs because of higher variable labor, freight and material costs.
Cat's global construction industries segment saw a 30% year-over-year increase for the quarter, realizing $5.25 billion in total sales, an increase of $1.99 billion over Q3 2020.
The company's North American construction markets increased by 36% year over year, driven by higher end-user demand from improving non-residential construction, continued strength in residential construction and dealer inventory changes.
The only geographical construction industries market to see a decrease was Cat's Asia/Pacific region, due to lower sales volume and dealer inventory decreases, particularly in China.
"Our global team continues to execute our long-term strategy for profitable growth while working to mitigate supply chain challenges as we serve our customers,” says Jim Umpleby, chairman and CEO. “Our third-quarter results reflect higher sales and revenues across our three primary segments and in all regions.”