Proactive Investors - Caterpillar Inc (NYSE:CAT) has reported mixed fourth-quarter results, with revenue growth exceeding expectations while its profits came under pressure amid rising manufacturing costs.
The manufacturer of construction and military equipment achieved a 20% increase in its fourth-quarter sales and revenue, up from $13.8 billion in 4Q 2021 to $16.6 billion. This was ahead of the consensus market expectation of $15.8 billion.
The increase was attributed to favorable price realization and higher sales volume partially offset by unfavorable currency impacts related to the euro, Japanese yen and Australian dollar.
However, the company’s profit fell to $1.45 billion, or $2.79 per share, from $2.12 billion, or $3.91 per share, in the year-ago quarter.
Adjusted profit per share came in at $3.86 in 4Q 2022, up from $2.69 per share for the year-ago quarter.
Caterpillar noted that this quarter included an unfavorable ME&T foreign currency impact of $0.41 per share, which negatively impacted profit per share and adjusted profit per share.
For the full year 2022, the company reported sales and revenue of $59.4 billion, up from $51 billion in 4Q 2021.
It posted a full-year profit per share of $12.64, up from $11.83 in the year-ago quarter, and an adjusted profit per share of $13.84, compared to $10.81 in the fourth quarter of 2021.
Caterpillar's shares fell 4.4% following the release of its quarterly results, trading at about US$250 per share at mid-morning on Wednesday.