Caterpillar weathers supply issues

Caterpillar’s sales surged in the final quarter of the year despite ongoing disruptions in the global supply chain that have hit almost every sector of the economy.

Sales climbed 23% to $13.8 billion, the construction machinery company said Friday, topping Wall Street expectations for $13.36 billion, according to a survey of industry analysts by Zacks Investment Research forecast.

Construction industry sales rose 27%, driven by an improvement in dealer inventories, higher enduser demand and increased prices.

Sales in the resource industries segment also climbed 27% on higher end-user demand for equipment and aftermarket parts, and higher prices. End-user demand was higher in mining and heavy construction.

The U.S. economy grew last year at the fastest pace since Ronald Reagan’s presidency. The nation’s gross domestic product — its total output of goods and services — expanded 5.7% in 2021. It was the strongest calendar-year growth since a 7.2% surge in 1984 after a previous recession. That accelerated toward the end of the year, with growth hitting an unexpectedly brisk 6.9% annual pace from October through December, the Commerce Department reported Thursday.

That growth, fueled by the emergence of the U.S. from a pandemic induced recession, has tightened supply everywhere, including for Caterpillar.

“Amid ongoing supply chain constraints, our team continues to execute our strategy for longterm profitable growth while striving to meet customer demand,” CEO Jim Umpleby said in a prepared statement.