Rising demand for machinery fueled sales at Caterpillar during the second quarter as the rollout of vaccines helped to revive construction projects.
Revenue was $12.89 billion, up from $10 billion, which exceeded the $12.41 billion that Wall Street was expecting, according to a survey by Zacks Investment Research.
Construction sales spiked 40% on both rising volumes and prices.
The construction industry has been pulled in different directions over the past year, with the global spread of COVID-19 freezing activity while simultaneously driving demand for housing higher as people sought new places outside of urban centers.
Prices for U.S. homes rose faster in May than they have in 17 years. The S&P CoreLogic Case-Shiller 20-city home price index soared 17% in May on top of a 15% jump in April.
For the three months ended June 30, Caterpillar Inc. earned $1.41 billion, or $2.56 per share. A year earlier it earned $458 million, or 84 cents per share.
Adjusted profit at the Deerfield, Illinois, company was $2.60, excluding restructuring costs. This topped the $2.38 per share Wall Street predicted.
Shares slipped in early trading.
