The industrial giant, which has benefited from robust pricing on equipment and increased infrastructure investment in the United States, reported record revenues in 2023 of $67.1 billion, up 13 percent from the prior year.
"Overall demand remains healthy across most of our end markets for our products and services," said Chief Executive Jim Umpleby, who told analysts the company expects 2024 revenues to be "broadly similar" to the 2023 level.
But Umpleby called the performance in China "relatively weak," adding that Caterpillar expects a similar situation this year.
Profits in the fourth quarter rose 84 percent from the year-ago level to $2.7 billion. Revenues climbed three percent to $17.1 billion, with strong pricing offsetting a decline in sales volumes.
Despite the broadly solid results, Umpleby told analysts that the company still had potential for more.
"We're not in a situation where we're hitting on all cylinders in all markets around the world," he said. "We believe we have opportunities here."
Besides a turnaround in China, Umpleby said Europe had potential "over time" for better performance.
The energy transition presents a long-term opportunity because of the need for miners to boost supplies of key metals, while more large engines will be needed for cloud computing and artificial intelligence, Umpleby said.
Shares of Caterpillar rose 1.5 percent in midday trading.
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