Industrials
Caterpillar Reports Sales Doldrums Ahead of Earnings
Published:
Last Updated:
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive
compensation for actions taken through them.
Caterpillar reports sales on a three-month rolling scale. The latest report includes data for April, May and June of this year.
Sales in Latin America have been hit hardest, down 50% overall and down 38% in sales of machines to resource industries, mainly mining, and down 55% in sales to construction industries.
Overall sales in the company’s Asia/Pacific region are down 19% in June, with mining equipment sales down 14% and construction equipment sales down 22%.
In North America, total sales are down 5%. Sales to resource industries are down 7% and sales to the construction industry are down 8%.
Only the Europe, Asia, Middle East (EAME) region showed any sign of life, with mining equipment sales up 1%. Construction equipment sales fell 2%, however, and total sales were down 2%.
In the energy and transportation segment, sales of transportation products were down 36%, power generation sales fell 2%, oil and gas equipment sales dropped 4% and industrial sales were down 12%. Overall sales were down 10%.
The collapse in commodity metal prices has stalled demand for more machinery and the slow-growth economy, particularly in emerging economies, likely has tamped down sales of construction equipment.
When Caterpillar reports quarterly results Thursday morning, analysts expect earnings per share of $1.27 on revenues of $12.62 billion. In the second quarter of last year, the company posted earnings per share of $1.69 on sales of $14.15 billion.
This report has weighed down Caterpillar’s shares, which traded down about 2.6% at $80.07 in the first half hour Wednesday morning. The stock’s 52-week range is $78.19 to $111.28, and the analysts’ consensus price target is $85.90.
ALSO READ: 4 Top Integrated Device Chip Makers to Buy Now
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.