Industrials came roaring back to life in the second quarter, with Club holdings Caterpillar (CAT), Emerson Electric (EMR), Honeywell (HON), Stanley Black & Decker (SWK) and Linde (LIN) all reporting largely solid results on the back of increased infrastructure spending, reduced costs and improved supply chains. Despite a difficult operating environment given the uncertain state of the global economy, there were bright spots in each company’s quarterly performance for the three months ended June 30. Here’s a breakdown of the results – along with our take, too. CAT YTD mountain Caterpillar (CAT) year-to-date performance. Caterpillar had a stand-out quarter , delivering big on an item that previously dinged its share price. The company’s backlog – sales made, but not yet completed and recorded — increased to $30.8 billion, an increase of $2.2 billion year-over-year. The construction-equipment manufacturer had strong quarterly sales, too, bolstered by the U.S. government’s increased infrastructure spending. Revenue in the second quarter surged 22% year-over-year, to $17.32 billion, topping expectations of $16.49 billion, according to Refinitiv. Adjusted earnings per share (EPS) jumped 75% on a annual basis, to $5.55, above Wall Street’s estimates of $4.58 a share. In Tuesday’s post-earnings conference call, management said the company expects “continued growth in nonresidential construction in North America due to the positive impact of government-related infrastructure investments and a healthy pipeline of construction projects.” Markets cheered, with the industrial powerhouse’s stock notching an all-time high of above $287 apiece. The Club — which had booked profits in Caterpillar last month — raised its price target on the stock to $300 a share, up from $285. In response to this strong move, we would look to take profits again when trading restrictions allow. EMR YTD mountain Emerson Electric (EMR) year-to-date performance. Emerson Electric posted a…
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