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Manufacturing Renaissance

By Charles Payne, CEO & Principal Analyst

Caterpillar (CAT) reported before the open, and as you know, I have been pounding the table on this for some time.  The company didn’t disappoint.  What’s really great about the beat is the strength in North America, not only is it CAT’s largest geographic segment, but it enjoyed the fastest growth.

  • Construction +50%
  • Resources +68%
  • Energy +35%
  • Total Machine $5.46 billion +46%

Domestic Infrastructure

Another favorite is United Rentals (URI), which posted strong results that underscores the same theme, as all elements of industrial economy had rapid growth coming into 2018.

  • The company’s utilization rate increased 70bps
  • EBITDA $947 million or 49.3% margin
  • Free Cash Flow $1.4 billion

Surging demand has allowed United Rental to raise its rates.  The chart below mirrors charts associated with other aspects of the industrial economy and consumer confidence.

Charles Payne
Wall Street Strategies


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