Caterpillar profit falls during second quarter
Second quarter earnings at Caterpillar Inc., Peoria, Ill., fell 43 percent as dealers cut inventories more than the company expected; as a result, Caterpillar cut its profit and revenue outlook for the year, according to USA Today
Caterpillar is the world's largest construction and mining equipment maker, and its results are monitored carefully as an indicator of the economy's future.
The company said dealers cut inventories by $1 billion as the global mining industry slowed because of reduced growth in China. Caterpillar reported earnings of $960 million, or $1.45 per share, compared with $1.7 billion, or $2.54 per share a year ago. Revenue fell 15.8 percent to $14.63 billion. Analysts had projected earnings of $1.69 per share on revenue of $15.09 billion.
Although Caterpillar Chairman and Chief Executive Officer Doug Oberhelman predicts improved profits for the second half of the year, the company still cut its full-year profit outlook from about $7 per share to $6.50 per share. Revenue now is expected to be between $56 billion and $58 billion—down from previous projections of $57 billion to $61 billion.
The company has taken action to cut costs, including temporarily closing factories and implementing rolling layoffs.
Date : 7/25/2013