Caterpillar’s Q3 profit sags, casts dim outlook with lowered 2016 guidance
VANCOUVER (miningweekly.com) – The world’s largest earthmoving and mining equipment manufacturer Caterpillar has booked a sharply lower third-quarter profit, citing global economic weakness and an abundance of used equipment available, which is slowing sales.
The NYSE-listed company expressed concern that the tough market would persist through much of 2017, prompting it to lower its full-year revenue outlook for the second time this year. It now expects revenues of about $39-billion, down from the range of $40-billion to $40.5-billion.
“Economic weakness throughout much of the world persists and, as a result, most of our end markets remain challenged. In North America, the market has an abundance of used construction equipment, rail customers have a substantial number of idle locomotives, and around the world there are a significant number of idle mining trucks,” Caterpillar chairperson and CEO Doug Oberhelman stated.
Caterpillar has had a slight increase in aftermarket equipment part sales in recent months, but not enough to call it a sales recovery, the company stated on Tuesday.
The group posted a third-quarter profit of $283-million, or $0.48 a share, down from a revised $559-million, or $0.94 a share, a year earlier.
Excluding restructuring costs, earnings per share came to $0.85, beating analyst estimates of $0.76 convincingly.
Revenue fell to $9.2-billion from about $11-billion, while analysts had expected $9.8-billion.
Caterpillar forecast 2016 profit at $2.35 a share, or $3.25 excluding restructuring costs.
The company also raised the forecast for 2016 restructuring costs to $800-million, from a previous estimate of $700-million.
Caterpillar shares closed down 1.76% at $84.48 apiece on Tuesday.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
