Caterpillar Says Chip Shortage May Hurt Equipment Deliveries
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Caterpillar Inc. is warning of potential impacts ahead due to a global chip shortage, putting a damper on better-than-expected earnings for the world鈥檚 biggest maker of mining and construction equipment.
鈥淎lthough we haven鈥檛 been impacted yet, the global semiconductor shortage may have an impact later this year,鈥 Chief Financial Officer Andrew Bonfield said April 29. 鈥淚t鈥檚 a risk and obviously we鈥檙e keeping a close eye on it.鈥
The cautionary words come after Caterpillar posted first-quarter revenue and profit that topped analysts鈥 estimates, in what Bonfield described as 鈥渧ery strong performance鈥 for the start of the year fueled by construction growth in the U.S. and China.
For full coverage of our first-quarter 2021 results 鈥 including a recording of our earnings call 鈥 visit 鈥 CaterpillarInc (@CaterpillarInc)
Caterpillar joins some of the world鈥檚 biggest automakers and tech giants in highlighting the impacts of a chip shortage that鈥檚 already caused Honda Motor Co. to halt output at Japanese plants and Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue.
The shortfall comes as Caterpillar expects a big ramp-up in machinery production through the rest of the year. While the company has been able to mitigate the issue so far, Bonfield said such shortages could mean Caterpillar may not be able to fully meet demand from its customers this year.
Caterpillar鈥檚 quarterly results surpassed Wall Street鈥檚 expectations, with sales jumping 12% to $11.9 billion in the period and per-share adjusted earnings of $2.87 topping the $1.95 a share average estimate of analysts鈥 estimates compiled by Bloomberg.
Shares of Caterpillar rose 1% to $234.53 at 9:30 a.m. trading in New York.
Caterpillar has been riding high on expectations for a sales recovery, with the stock coming off its best quarter in more than a decade in a bet on improving orders amid mass vaccine rollouts and signs of rebounding industrial demand.
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