DEERFIELD, Ill. (AP) — Caterpillar had a strong second quarter, beating most earnings expectations as higher machine prices offset rising costs.
The manufacturer posted a quarterly profit of $1.67 billion, or $3.13, on Tuesday. Earnings per share were $3.18 excluding one-time costs and benefits, which is 18 cents better than Wall Street expected, according to a survey of industry analysts by Zacks Investment Research.
The Deerfield, Illinois company had revenue of $14.25 billion, roughly in line with the $14.3 billion that analysts had projected.
Operating profit margin for the quarter was 13.6%, down slightly from 13.9% a year ago, and that took some of the strength out of the stock before the opening bell.
“Volumes were well below our expectations as (Caterpillar) and its supply base continue to grapple with inefficiencies,” Citi analyst Timothy Thein wrote.
Shares of Caterpillar Inc., down almost 6% this year, fell about 3% before the opening bell on Tuesday.
The company, which has about 230 employees at its Deerfield office, announced in June plans to move its headquarters to an existing office in Irving, Texas, outside of Dallas.