Caterpillar reports that its power generation sales increased by US$204 million or 23% in the third fiscal quarter, driven primarily by sales of reciprocating engines to support data center and power plant applications as well as higher aftermarket part sales.
Industrial application sales were down 2% largely due to economic activity in Turkey. However, sales in North America and Asia-Pacific increased slightly over the third quarter of last year. Transportation sales were up 12%. The sales growth continues to be driven by a recent European and Australian mail service acquisitions and higher North American rail traffic, the company said.
Overall, the company reported revenues of US$13.51 billion, 18% higher year over year. The Deerfield, Illinois, USA-based company’s global workforce increased about 8200 from the end of the third quarter of 2017. It now employs 123 100 worldwide.
In rail, Caterpillar has seen an increase in locomotive rebuilds and modernization. It also reported higher service and part sales. The company noted that rail traffic in North America has increased and expect new locomotive orders to continue to improve.
Latin America has been a bit slow to recover in construction industries and offshore oil and gas production has been slow, but company officials said they feel good about the state of the business overall.