The biggest mining machinery manufacturer – Caterpillar Inc. reported its results over the second fiscal quarter and posted a full-year forecast for its sales and earnings.
According to the companys statement, Caterpillars profit over the second quarter rose by 4% to 999 million dollars, or 1.57 dollars per share, from 960 million dollars, or 1.45 dollars per share, over the same period a year earlier.
Earnings per share excluding restructuring expenses jumped by 14% to 1.69 dollars from $1.48, beating analysts initial forecasts for earnings of 1.51 dollars a share. Caterpillar Inc. also shared that its sales declined by 3% and reached 14.15 billion dollars. The result trailed analysts average estimates of 14.5 billion dollars.
The U.S.-based company, which manufactures construction and mining equipment, diesel and natural gas engines, as well as diesel-electric locomotives and industrial gas turbines, shared its full-year profit and sales projection as well.
According to Caterpillar Inc.s statement, its profit excluding restructuring expenses is expected to amount to 6.20 dollars a share, underperforming analysts forecast of 6.23 dollars per share. The company said that its revenue will be as much as 56 billion dollars, trailing analysts projections for 56.3 billion dollars.
As an industry leader, the company has often been used as a guide to global demand, and especially for the state of the Chinese market. Recently, most mining companies have been focused on reducing their capital spending due to market instability. Caterpillar, which finalized a number of mining-related takeover deals at time when the market was stronger, explained that the overall the industry is “weak”.
As reported by Bloomberg, Mr. Doug Oberhelman, the companys Chief Executive Officer, said: “We are seeing our customers defer maintenance. The bottom is just behind us. Our numbers are minuscule in terms of ticking up, but they are ticking up.”
Caterpillar Inc. fell by 3.08% to close at $105.04 per share In New York yesterday, marking a one-year change of +25.89%. The company is valued at $65.70 billion. According to CNN Money, the 22 analysts offering 12-month price forecasts for Caterpillar Inc. have a median target of $110.00, with a high estimate of $125.00 and a low estimate of $95.00. The median estimate represents a +4.72% increase from the last price of $105.04.
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