Caterpillar's (CAT) - Get Report stock price barreled upward Tuesday after a favorable sales report by the heavy equipment maker and a decision by the Trump administration to delay additional tariffs on billions more in Chinese goods.
Shares of Caterpillar (CAT) - Get Report bulldozed ahead 2.81% to $120 amid a 4% jump in global sales in July by the maker of bulldozers, dump trucks and other big machines, and the tariff delay, which pushed stocks broadly higher on Tuesday. The increase comes after a volatile year for Caterpillar stock, which was trading at $156.38 back on Sept. 17, 2018.
While push-back of the next round of tariffs to Dec. 15 would primarily impact laptops, cell phones, and footwear, President Donald Trump has characterized the delay partly as an overture to China amid its escalating trade war with the United States as well as a way to shield holiday sales in the U.S.
The giant Deerfield, Ill.-based heavy equipment builder and exporter estimated last year that tariffs would boost material costs by as much as $100 million to $200 million alone during the second half of 2018.
Caterpillar's sales increase was powered by a 9% jump in heavy equipment sales in North America and a 20% rise in sales in Latin America.
The two big increases in its sales in the Western Hemisphere helped offset a 6% decline in equipment sales in the Asia/Pacific region, including China. That was up from a 5% drop, on a rolling basis, in June.
Last month, Caterpillar announced a 3% rise in second-quarter revenue to $14.4 billion, while earnings per share rose to $2.83, up from $2.82 during the same period the year before.
"Sales and revenues increased this quarter, including a record performance from Construction Industries, which reflected our strong competitive position globally," said Caterpillar Chairman and CEO Jim Umpleby in a press release on the company's second-quarter earnings.