Sunday, October 4th0.7°C

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 TSX13339.74+97.85
S&P CDNX525.56-0.33
S&P 5001951.36+27.54
CDN Dollar0.7602+0.0057
Natural Gas2.47+0.04

Okanagan Companies
Pacific Safety0.215+0.000
QHR Technologies Inc1.19+0.01
Metalex Ventures0.06+0.00
Russel Metals21.48-0.07
Copper Mountain Mining0.42+0.03
Colorado Resources0.08+0.01
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.095+0.005
Decisive Dividend Corp3.49+0.45
Diamcor Mining0.90+0.02


2370014#113-3880 Truswell Road
2 bedrooms 3 baths
more details
Click here to feature your property
Please wait... loading

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

Collateral mortgage

Photo: Thinkstock.comMost of the time I recommend that my clients not take a collateral type mortgage product, as it locks you in with the current lender and at maturity the mortgage is costly to tran...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council