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Caterpillar Beats Q3 Earnings Estimates – See Increased Demand From Mining & Construction Sectors

By John F. Heerdink, Jr.

Dow 30 component, Caterpillar, Inc. (CAT) reported strong third-quarter earnings, which exceeded analysts’ expectations as demand for heavy machinery across the construction and mining sectors outweighed concerns of ongoing supply-chain hangups. The company reported adjusted quarterly profit of $2.66 a share, beating the $2.20 a share average of analysts’ estimates.

Demand for Caterpillar equipment remains solid from North America to Europe and the Middle East to most parts of Asia, and despite inflation, in materials and freight costs the company has been able to meet those costs through an increase in machine prices. The company expects a weak market in China and expects sales will drop in the final quarter of the year.

“We’re a little bit less than where we expected to be. It means that they may be waiting for some of their machines, but the demand won’t disappear, it just will probably make the sales line extend out for longer than it normally would have done through the rebound,” stated Chief Financial Officer Andrew Bonfield.

Dow 30 Component Caterpillar, Inc. (CAT) is the world’s chief manufacturer of diesel and natural gas engines, construction and mining equipment, industrial gas turbines, and diesel-electric locomotives. Caterpillar, Inc. also works to make sustainable progress possible and contributes to driving positive change on every continent. To learn more about Caterpillar, Inc. (CAT) and to continue to track its progress please visit the Vista Partners Caterpillar, Inc. Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: Caterpillar Profit Tops Estimates as Supply-Chain Snags Loom in Bloomberg)


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