Friday, October 31st6.2°C
23696
23004

Caterpillar 2nd-quarter profit rises, revenue falls; lifts full-year earnings forecast

PEORIA, Ill. - Caterpillar's second-quarter net income rose 4.1 per cent even as revenue slipped.

The construction equipment company's adjusted profit topped Wall Street's view, but revenue fell short. It also boosted its full-year earnings forecast.

Caterpillar — which also makes power systems that include large electrical generators and locomotive engines — earned $999 million, or $1.57 per share, in the quarter. A year earlier it earned $960 million, or $1.45 per share.

Removing restructuring costs, earnings were $1.69 per share. Analysts polled by FactSet predicted $1.51 per share.

Revenue for the Peoria, Illinois, company dropped 3.2 per cent to $14.15 billion from $14.62 billion. Wall Street expected $14.45 billion in revenue.

Caterpillar Inc.'s stock fell $1.97, or 1.8 per cent, to $106.41 in premarket trading Thursday about an hour ahead of the market open.

The company dealt with softer sales in its resource industries segment, as there was lower demand for mining equipment.

Sales fell in Latin America and the Asia Pacific region. This was somewhat offset by higher sales in North America. Sales for Europe, the Middle East and Africa were basically flat.

Looking ahead, Caterpillar now anticipates a 2014 adjusted profit of $6.20 per share, up from a previous outlook of $6.10 per share. Analysts foresee $6.18 per share.

The company also narrowed its revenue guidance for the year. Caterpillar now expects revenue in a range of $54 billion to $56 billion. Previously it predicted revenue between $53.2 billion and $58.8 billion.

Wall Street is calling for $56.16 billion in revenue.

Caterpillar plans to buy back about $2.5 billion shares in the third quarter. The stock repurchase is part of a $10 billion buyback program approved by its board in the first quarter. Caterpillar repurchased about $1.7 billion shares in the first quarter.

The Canadian Press


Read more Business News

22831


Recent Trending




Today's Market
S&P TSX14613.32+154.63
S&P CDNX769.59-2.06
DJIA17390.52195.10
Nasdaq4630.742+64.604
S&P 5002018.05+23.40
CDN Dollar0.88750.00
Gold1166.30-32.2999
Oil80.55-0.35
Lumber325.70+2.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.125+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.18+0.03
Cantex0.045-0.015
Anavex Life Sciences0.185+0.0139
Metalex Ventures0.03-0.005
Russel Metals32.85+0.63
Copper Mountain Mining2.09+0.12
Colorado Resources0.125-0.015
ReliaBrand Inc0.015+0.003
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.39+0.015

 



23028

FEATURED Property
20713141124 Lynn Court, Kelowna, BC
3 bedrooms 3 baths
$579,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


23091