(Reuters) -Caterpillar Inc on Tuesday reported a lower-than-expected quarterly profit as increasing manufacturing and freight costs pressured the heavy machinery maker’s margins.
Shares of Caterpillar were down 3.3% before the bell.
Despite higher orders, the industrial bellwether is grappling with supply constraints, boosting costs and clipping its ability to ship units and replenish dealer inventories.
Caterpillar’s sales and revenue for the quarter through December rose 20% to $16.6 billion.
Adjusted profit for the quarter rose to $3.86 per share, missing analysts’ estimate of $4.02, according to Refinitiv IBES data.
Caterpillar reports fourth-quarter 2022 revenues of $724 million, an increase of $81 million, or 13%, compared with $643 million in the fourth quarter of 2021.
Q4 profit was $118 million, down $4 million, or 3%, compared with $122 million in Q4 2021.
Full year sales and revenue were up 17%.
“Our global team delivered one of the best years in our nearly 100-year history, including record full-year adjusted profit per share,” said Caterpillar Chairman and CEO, Jim Umpleby. “Despite supply chain challenges, the team achieved double-digit top-line growth and generated strong ME&T free cash flow. We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth.”
Caterpillar did not release a financial outlook.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Maju Samuel)
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