Tuesday, November 25th0.1°C
24124
24058

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




Recent Trending




Today's Market
S&P TSX15073.65+58.24
S&P CDNX780.64-6.86
DJIA17814.94-2.96
Nasdaq4758.252+3.36
S&P 5002067.03-2.38
CDN Dollar0.8879-0.0006
Gold1199.30+2.2001
Oil74.10+0.01
Lumber328.80-0.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.04
Cantex0.040.00
Anavex Life Sciences0.175-0.005
Metalex Ventures0.030.00
Russel Metals32.14+0.65
Copper Mountain Mining2.15-0.02
Colorado Resources0.130.00
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.325-0.04

 
23744




FEATURED Property
17933704 - 901 Westside Road, Kelowna, BC
10067225 bedrooms
$899,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...

_



24207

24158


Member of BC Press Council


24018