Caterpillar’s (CAT) first quarter results are a pretty good sign that no one wants big earth movers or machines that can move a small city from one state to another overnight.
Revenue at CAT was down 22% to $9.2 billion. The company lost $.19 a share contrasted by a profit of $922 million a year ago. CAT said “redundancy” costs could be backed out and this would move EPS to a positive $.39. Not much comfort in that.
CAT said its machinery sales, the largest part of its business suffered a 29% decline.
CAT’s new guidance signaled that no one should expect construction or infrastructure spending to rebound soon. This should be an indicator that companies like GE (GE) which depend on large infrastructure programs could struggle later this year.
The company expects 2009 sales and revenues to be in a range of plus or minus 10 percent around a midpoint of $35 billion.
No recovery signal here.
Douglas A. McIntyre
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