Caterpillar Says Sales Woes Could Linger
25 Oktober 2016 - 2:32PM
Dow Jones News
By Joshua Jamerson
Caterpillar Inc. said lower-than-expected equipment sales in the
second half of the year could continue into next year, as the
company reported revenue in its latest quarter remained battered,
falling 16%.
Caterpillar shares, which had climbed 9.3% in the past three
months, fell 2.1% to $84.17 in premarket trading.
Caterpillar also cut its earnings view for 2016, now projecting
full-year earnings of $3.25 excluding restructuring costs, compared
with its prior guidance for $3.55 a share. The company earned $3.50
a share in 2015. For revenue, the company now expects $39 billion,
compared with its prior range of $40 billion to $40.5 billion.
"While we are seeing early signals of improvement in some areas,
we continue to face a number of challenges," said outgoing chief
executive Doug Oberhelman. The company pointed to no increase in
orders for new equipment amid lower-than-expected construction
equipment sales in the second half of 2016, which the company said
could continue into 2017. Caterpillar also pointed to global
economic uncertainty, such as the Brexit vote.
In addition to the outlook, the company reported revenue for the
third quarter missed Wall Street's views.
The third-quarter results and financial forecasts come a week
after Caterpillar said Mr. Oberhelman would retire as chief
executive at the end of this year and as chairman at the end of
March. He will be replaced Jim Umpleby, who will be first
Caterpillar chief in a quarter-century to run the company without
control over the board.
Over all for the September quarter, the company reported a
profit of $283 million, or 48 cents a share, down from $559
million, or 94 cents a share, a year earlier. Excluding
restructuring costs, earnings per share fell to 85 cents from $1.05
a year ago.
Revenue slid fell to $9.16 billion from $10.96 a year ago.
Analysts predicted $9.87 billion in revenue, according to Thomson
Reuters.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
October 25, 2016 08:17 ET (12:17 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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