Caterpillar reports profit jump but warns of supply chain headwinds
-
S.African activists push back on data centre rush
-
Billionaire Ambani's Jio jumps 21% in market debut after record India IPO
-
Billionaire Ambani's Jio to debut after record India IPO
-
Sri Lanka's Tamil farmers fight to reclaim land after civil war
-
UK set for cautious budget as borrowing costs climb
-
'They don't care about us': Trump food aid cuts leave Americans struggling and angry
-
US Fed expected to hold rates steady ahead of key midterm elections
-
Palestinian activist Khalil returns to Columbia after US detention
-
AI chip giant SK hynix says quarterly operating profit soars 630%
-
Youths testify about 'despair' in unprecedented Canadian climate trial
-
Charles tackles thorny legacy of slavery on Caribbean trip
-
Storied Paris department store seeks bankruptcy protection
-
UN nuclear watchdog chief urges Iran to grant access
-
Boeing shares tumble after it releases cautious growth forecast
-
Boeing releases cautious growth plan as shares fall sharply
-
Boeing reports smaller loss as it aims for stable output growth
-
Tech firms gain on Anthropic IPO optimism; HSBC slumps in London
-
Dangote, Nigeria's oil tycoon rewriting Africa's story
-
Tech firms track Wall St rally on mixed day for stock markets
-
Kane says Ballon d'Or win 'feels like a dream' as tributes pour in
-
HSBC profit jumps on higher rates, lower costs
-
Mercedes-Benz cuts 2026 profit outlook on tough China market
-
Reparations calls follow Charles on tough Caribbean trip
-
Wall Street faces earnings and Fed tests after turbulent technology-led week
-
China brands drop Mbappe for 'offending national sentiments'
-
Delhi grants minimum monthly pay and DA to about 4,000 MCD health workers
-
Critical coal inventories affect nearly half of India’s domestic power plants
-
FCNR(B) deposit drive puts sharper margin pressure on private banks
-
Gold ETF flows turn negative after 13 weeks as bullion loses 4%
Caterpillar reports profit jump but warns of supply chain headwinds
Caterpillar reported a jump in fourth-quarter earnings Friday on surging demand for industrial equipment, but warned that supply chain problems will probably continue to weigh on results in 2022.
The company, which manufactures and sells equipment to heavy industries such as construction and mining, saw higher sales across its businesses amid broad-based demand growth.
But Chief Executive Jim Umpleby said on a conference call with analysts that the company's revenues would have been even higher had it not faced supply chain problems that pinched production.
Umpleby said the company had kept underutilized factories open to meet customer demand despite higher expenses. Higher freight costs also cut into profit margins.
"Demand remains strong as represented by robust orders," Umpleby said. "The key variable remains the supply chain, meaning to what degree can we meet end-demand growth?"
Net income for the quarter was $2.1 billion, more than double the level in the 2020 period off of a 23 percent increase in revenues to $13.8 billion.
Caterpillar said it expects strong sales in the first quarter of 2022 compared with the year-ago period but that its profit margins faced "headwinds," according to a PowerPoint presentation.
The company said it expects price increases to offset manufacturing costs increases in 2022.
Shares fell 2.1 percent to $207.64 in pre-market trading.
X.Wong--CPN
