The $500 billion U.S. infrastructure spending bill, passed in late 2021, helped lift the firm’s third-quarter profit 41% from a year ago.
As with other sharp pullbacks after government-supported pandemic spending, Caterpillar will prove that counting on federal aid isn’t a viable business model.
And the construction firms that order from Caterpillar appeared to step back, with the company's backlog of deliveries falling $2.6 billion in the third quarter.
The U.S. CHIPS Act set aside $39 billion to help build semiconductor factories, leaving more money for construction firms and, in turn, Caterpillar.
Umpleby may be benefitting from Uncle Sam now, but before long Caterpillar will have to fend for itself.
Persons:
Michaela Rehle, James Umpleby, Joe Biden’s, EBITDA, Uncle Sam, Lauren Silva Laughlin, Sharon Lam
Organizations:
Construction Machinery, Machines, Mining Machines, Construction Vehicles, REUTERS, Rights, Reuters, Caterpillar, U.S . General Services Administration, Siemens, Cummins, LSEG, Thomson
Locations:
Munich, Germany, Texas, China, U.S