Caterpillar Revenue Continues to Skid -- 2nd Update
26 Januar 2017 - 6:15PM
Dow Jones News
By Andrew Tangel
Caterpillar Inc. trimmed its sales outlook for this year and
said revenue slid in 2016 for the fourth year in a row, evidence a
prolonged slump in mining and construction is still unfolding.
The Peoria, Ill.-based heavy-equipment giant said the recent
strengthening of the U.S. dollar could drag down sales this year,
after revenue fell 18% in 2016 to $38.5 billion.
Caterpillar's losses deepened in the fourth quarter. The company
reported a loss of $1.2 billion, or $2 a share, compared with a
year-earlier loss of $94 million, or 16 cents. Revenue fell to $9.6
billion from $11 billion a year ago.
"We continue to execute in a challenging economic environment
and are focused on improving operating margins, profitability and
shareholder returns," Caterpillar Chief Executive Jim Umpleby said.
"While we see signs of positive activity in some of our key end
markets, the overall economic environment remains challenging."
The manufacturer's troubles were compounded by
higher-than-expected restructuring costs, losses related to pension
and retirement benefits and a $595 million impairment tied to its
2011 billion acquisition of mining-equipment maker Bucyrus
International Inc.
Excluding those items, the company said it earned 83 cents per
share, flat with a year ago and above the 66 cents expected by
analysts polled by Thomson Reuters. Analysts had expected revenue
of $9.8 billion.
Caterpillar's shares fell about 1% to $97.13 in early trading
Thursday.
The dollar's strengthening since President Donald Trump's
election in November could make 2017 a tough year for manufacturers
such as Caterpillar that depend on exports. A stronger dollar makes
American products more expensive overseas, and foreign sales less
valuable.
Caterpillar said the dollar's climb is one reason it lowered its
revenue outlook for the year to a range of between $36 billion and
$39 billion.
The midpoint would be lower than the approximately $38 billion
it telegraphed in December, and potentially mark a fifth-straight
year of declining revenue for the world's largest mining and
construction equipment maker.
Caterpillar said it expects earnings per-share of about $2.30
this year, or $2.90 excluding estimated restructuring costs of
about $500 million.
Caterpillar's restructuring also weighed on its global
workforce, which it has cut recently. By the end of 2016, the
company counted 106,400 employees, down from 118,700 a year ago.
Most of the reductions were made in the U.S.
Caterpillar's scheduled call with analysts on Thursday morning
will review the company's first quarterly earnings report with Mr.
Umpleby as chief executive. He succeeded Doug Oberhelman, who is
slated to remain chairman of the of board through March.
Analysts and investors will be listening for clues as to how Mr.
Trump's presidency could affect Caterpillar's fortunes. The
president has called for increased spending on U.S. infrastructure,
as well as sweeping changes to tax and trade policies.
Joshua Jamerson contributed to this article.
Write to Andrew Tangel at Andrew.Tangel@wsj.com
(END) Dow Jones Newswires
January 26, 2017 12:00 ET (17:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Caterpillar (NYSE:CAT)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Caterpillar (NYSE:CAT)
Historical Stock Chart
Von Jul 2023 bis Jul 2024