Caterpillar Revenue Continues to Skid -- Update
26 Januar 2017 - 2:48PM
Dow Jones News
By Joshua Jamerson
Caterpillar Inc. reported a larger loss in the fourth quarter,
dented by higher-than-expected restructuring costs, as sales
skidded 13% on continued soft demand.
The sales decline was bigger than expected, and the stock fell
1.6% to $96.56 in premarket trading.
The company, citing a stronger U.S. dollar, lowered its revenue
outlook slightly for the year to a range of $36 billion to $39
billion with a midpoint of $37.5 billion. In December the company
said the analyst consensus for $38 billion was a reasonable
midpoint expectation.
Caterpillar also now expects adjusted profit of about $2.90 a
share at the midpoint of its range; analysts, on average, expected
$3.04 a share.
Caterpillar is still confronting persistent weak demand for its
construction, mining and oil equipment. A slump in commodities
prices and a glut of used machines have pressured sales of new
equipment. Caterpillar Chief Executive Officer Jim Umpleby said in
prepared remarks Thursday that the results for the quarter
reflected "pressure in many of our end markets from weak economic
conditions around much of the world."
The Peoria, Ill.-based manufacturing giant said it is "seeing
positive signs that could be early indications of modest recovery
in several of our businesses," but warned that sales of some large
construction equipment within Resource Industries are likely to be
down in 2017 compared with last year.
The company booked a total $1.98 billion in charges that it said
weighed on the bottom line, including $395 million in restructuring
costs. The company also recorded $985 million in mark-to-market
losses as well as a large goodwill impairment charge.
Over all, Caterpillar recorded a net loss of $1.17 billion, or
$2 a share, compared with a year-earlier net loss of $94 million,
or 16 cents a share. Excluding certain items, the company said it
earned 83 cents, flat with a year ago and above the 66 cents
expected by analysts polled by Thomson Reuters.
Revenue fell to $9.57 billion from $11.03 billion in the
prior-year fourth quarter. Analysts expected $9.84 billion.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
January 26, 2017 08:33 ET (13:33 GMT)
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