Illinois-based Caterpillar saw a 23% increase in sales and revenues in its December quarter to USD$13.8 billion.
Caterpillar's operating profit margin declined to 11.7%, compared to 12.3% year-on-year.
Full sales for 2021 jumped 22% compared to 2020, Caterpillar said. Sales in 2021 amounted to US$51.0 billion, up from US$41.7 billion in 2020 due to higher end-user demand.
Operating profit for 2021 was 13.5% for 2021, up from 10.9% in 2020. The company had an ongoing operating cash flow of US$7.2 billion for 2021, and used USD$2.7 billion to repurchase stock. It also paid dividends of US$2.3 billion.
Caterpillar continues to see supply chain constraints, chief executive Jim Umpleby said.
In the resources sector, Caterpillar's total December-quarter sales came to US$2.76 billion, a 27% increase year-on-year. End-user demand was higher in the mining sector and in the heavy construction and quarry sectors, driving the increase in sales.
North American demand for Caterpillar machinery increased by 44% year-on-year, amounting to USD$857 million sales. Sales in Europe, Africa, and the Middle East, as well as in the Asia-Pacific region, increased 29%.
The subdivision's profit increased by 12%, for USD$305 million in the December quarter. The higher number of sales offset increased manufacturing and R&D expenses.
Caterpillar anticipates a stronger January quarter in 2022 than in the preceding year, due to favourable prices and continuing demand.