Infrastructure
Caterpillar Run Over By Own Tracks (CAT)
Published:
Last Updated:
If you were hoping that Caterpillar Inc. (NYSE: CAT) was going to pull a miracle out of the hat with earnings, Monday is going to be a cold day regardless of the weather. The construction and infrastructure equipment giant did manage to post a 7% sales gain. That’s where the good news stops.
Earnings were $1.08 EPS on $12.92 billion in revenue.First Call estimates were for $1.29 EPS and almost $12.8 billion inrevenues. The earnings report is inclusive of some items, but all youhave to do is glance over the release to see how bad things are looking.
The company sees a significant drop in production, and will be cuttingjobs, production and expenses. This may slash as many 20,000 workers, or 20% of its workforce.
Production volume ahead is being called "severely depressed" and youcan imagine how slow things are. The company sees earnings for 2009 of about $2.50 EPS vs $4.32 estimates, and put revenues around $40billion, which is below estimates of $47.4 billion.
It is even seeing internal pressure on customer order quality. It saidthat its accounts past due over 30 days were 3.88% compared with 2.36% atDecember 31, 2007.
This is really taking down futures and may help kill any hopes ofinfrastructure or commodities recoveries. Shares closed at $35.66 onFriday, and now are trading under $31.00 in pre-market trading.
Jon C. Ogg
January 26, 2009
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
