Caterpillar sees profits jump
Caterpillar reported a jump in second-quarter profits Friday driven by higher sales across its divisions, but said customers in major industries were still avoiding new investments.
The company's results showed the benefits of the recovery in the global economy from the depths of the Covid-19 pandemic, led by construction profits, which nearly doubled in the quarter.
"We're encouraged by higher sales and revenues across all regions and in our three primary segments, which reflect continued improvement in our end markets," said Chief Executive Jim Umpleby.
But Umpleby did not provide profit-per-share forecasts, citing the "highly fluid environment" in a conference call with analysts. Umpleby said that key clients were holding back on big capital spending initiatives that drive demand for Caterpillar's industrial machines.
While there has been a "steady improvement in mining," companies overall "continue to display capital discipline," Umpleby said.
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