Caterpillar reported record second quarter earnings per share Monday while also bumping up its full-year forecast. The big exporter also said it would offset a sizable second-half profit hit from the tariffs by raising prices.
“Caterpillar delivered record second-quarter profit per share,” CEO Jim Umpleby said in a statement. “Based on outstanding results in the first half of the year and continued strength in many of our end markets, Caterpillar is again raising our profit outlook for 2018.”
The U.S. heavy equipment manufacturer’s second-quarter earnings of $2.82 per share was more than double the same period last year, while its adjusted earnings of $2.97 per share was also nearly twice as high.
Caterpillar bumped up its full year profit forecast to a range of $11 per share to $12 per share, an increase of 75 cents per share from its previous guidance. The company gave this higher forecast despite rising costs due to tariffs, with Caterpillar saying it expects an impact of $100 million to $200 million on its material costs in the second half of this year. Caterpillar will offset those impacts with price increases this year, the company said.
Shares of Caterpillar rose over 3 percent in premarket, from Friday’s close of $142.56 per share. The company’s stock has slid nearly 10 percent this year.