Caterpillar profit rises as higher prices offset easing demand

By Thomson Reuters Apr 25, 2024 | 5:44 AM

(Reuters) -Caterpillar posted a rise in quarterly profit on Thursday as it held on to higher prices for its construction equipment as demand eased from last year’s boom.

Caterpillar has benefited from President Joe Biden’s $1 trillion 2021 infrastructure law to upgrade roads, bridges and other transportation infrastructure.

Although the boom from last year has eased it has remained relatively stable, helping Caterpillar hold on to the price increases it launched in the second half of 2023.

That has helped the company offset the pressure on margins from an increase in manufacturing costs amid the lingering impact from supply chain constraints and higher steel prices.

The company’s net income rose to $2.86 billion, or $5.75 per share, in the first quarter ended March 31, from $1.94 billion, or $3.74 per share, a year earlier.

It reported an adjusted per-share profit of $5.60 for the first quarter, compared with $4.91 last year.

(Reporting by Deborah Sophia in Bengaluru; Editing by Saumyadeb Chakrabarty)