Caterpillar posts record Q3 earnings
But the company is cautious about the global economy.
Caterpillar (CAT), a global leader in construction and mining equipment, announced record third-quarter earnings Monday. But company warned that its 2013 revenue may be lower as the world economy slows.
Caterpillar's sales rose to $16.4 billion, a 5% increase over the same time period last year. Profit per share was $2.54, well above the expected $2.22.
That said, the company expects its 2012 sales and revenues to be a weaker-than-expected $66 billion -- down from a previous estimate in the $68 billion to $70 billion range. Caterpillar also notes its dealers have lowered order rates to reduce their inventories and that lower company-wide production will result in temporary shutdowns and layoffs.
Caterpillar's preliminary forecast for 2013, meanwhile, is for sales and revenue to hover in a range of 5% above to 5% below its 2012 numbers.
"We are taking a pragmatic view of 2013," Oberhelman said. "We're not expecting rapid growth, and we're not predicting a global recession."
The company is looking for a slow start to next year but expects about 2% economic growth in its U.S. market as the housing crisis eases and construction activity for both residential and nonresidential structures picks up.
At the same time, Caterpillar expects marginal growth at best from its European markets as the debt crisis there deepens. It warns "the eurozone is the most significant risk to our 2013 economic outlook."
Caterpillar's sales in China also remained weak in the third quarter, and below 2011 levels. And while the Chinese economy cools, the company is still optimistic about long-term growth there.
"Our plans for the remainder of 2012 reflect a continued orderly ramp-down of production that considers our entire supply chain in China," Caterpillar said. "Given the current low rate of sales and the production ramp down, it will likely take the rest of 2012 and continuing into 2013 to reduce inventory to levels more in line with sales."
The company also expects growth in Brazil, Africa and Latin America to increase as the economic landscape improves, the demand for natural resources continues and construction activity revives.
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Land of very strong unions, high taxes, and an ungodly amount of regulations to hinder business at every turn?
Yeah, it's that greedy Corporation's fault they are moving.
Liberals and die hard union advocates, can you detect sarcasm when you see it?
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GO ROMNEY 2012!!!
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