Thursday, March 5th2.4°C
25405
22952

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

24279


Recent Trending




Today's Market
S&P TSX15140.88+58.04
S&P CDNX695.65-2.44
DJIA18111.03+14.13
Nasdaq4974.087+6.946
S&P 5002098.84+0.31
CDN Dollar0.7996-0.0052
Gold1196.00-4.60
Oil52.96-0.27
Lumber287.70-3.00
Natural Gas2.832+0.063

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.010.00
QHR Technologies Inc1.60+0.05
Cantex0.035-0.005
Anavex Life Sciences0.180.00
Metalex Ventures0.045+0.005
Russel Metals24.44-0.51
Copper Mountain Mining1.25+0.01
Colorado Resources0.125-0.005
ReliaBrand Inc0.0065-0.0015
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.22-0.005

 



24896

FEATURED Property
21526774189 Gellatly Road
4 bedrooms 3 baths
$1,799,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...

_








Member of BC Press Council


25107