Caterpillar Returns to Growth as Global Recovery Continues
25 Januar 2018 - 3:07PM
Dow Jones News
By Andrew Tangel
Caterpillar Inc.'s revenue rose 18% in 2017, breaking a
four-year streak of declining sales for the world's largest maker
of heavy machinery.
This year the Deerfield, Ill.-based manufacturer expects its
construction, mining and energy markets around the globe to
continue gaining strength.
Still, Caterpillar reported a loss in the fourth quarter, as it
booked a one-time charge related to changes to the U.S. tax code
signed into law by President Donald Trump in late December.
The company booked a $2.4 billion charge related to repatriation
of foreign profits and write downs of reduced deferred tax assets.
Still, the company told investors that it would benefit in the long
term through a lower corporate tax rate, greater ability to access
overseas cash and a more equal playing field between it and foreign
competitors. Caterpillar had $16 billion in overseas profits at the
end of 2016.
"After four challenging years, many key markets improved in
2017," Chief Executive Jim Umpleby said.
Shares rose 3.1% in premarket trading.
Caterpillar's mining and construction markets around the world
showed signs of turnaround throughout 2017. The company said
Wednesday a rolling three-month average of global retail sales of
its machinery rose 34% in December, up from 26% in November.
Mr. Umpleby, who took over his current job at that start of
2017, has said a prime focus under his watch would be profitable
growth, rather than only increasing revenue.
For 2018, the company expects to report adjusted earnings per
share of $8.25 to $9.25, above both the $8.19 that had been
expected by Wall Street analysts and the $6.88 in adjusted earnings
per share in 2017.
While the company cheered the new tax law's benefits,
Caterpillar's earnings report said nothing about a Swiss subsidy
that is at the center of a tax structure that has been under
criminal investigation. Federal agents raided Caterpillar's
headquarters and two other locations last year in the probe, which
is focused on taxes and exports. The company hasn't been accused of
wrongdoing and has said it believes its tax position is
correct.
Overall for the fourth quarter, the company reported a loss of
$1.3 billion, or $2.18 per share, compared with a loss of $1.17
billion, or $2 a share, a year ago. On an adjusted basis, which
strips out the impact of the tax charge and other factors, the
company earned $2.16 a share
Wall Street analysts expected adjusted earnings per share of
$1.79, according to Thomson Reuters.
Caterpillar said revenue rose 35% in the quarter to $12.9
billion. Analysts expected $11.98 billion. In 2017, revenue
increased to $45.5 billion.
The company added 4,800 jobs in the U.S. last year, a shift
following years of deep cuts in its domestic workforce. Caterpillar
said its domestic workforce rose to 50,500 employees, up from
49,700 at the end of September.
Austen Hufford contributed to this article.
Write to Andrew Tangel at Andrew.Tangel@wsj.com
(END) Dow Jones Newswires
January 25, 2018 08:52 ET (13:52 GMT)
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