Tom Lindmark

Caterpillar's Loss Not a Good Harbinger of Economic Things to Come

Ricard,

The statement was meant to differentiate Cat's results from what we normally associate with economic indicators. Things like consumer confidence and employment. Your comment is absolutely valid.


On Apr 21 09:50 PM Ricard wrote:

> Tom,
>
> I'm not sure why you consider Caterpillar an unconventional indicator
> for US economic activity. Its business is at the heart of nearly
> every other US business, i.e., building something with heavy equipment.
> If Caterpillar's outlook is positive (as it is in China), then people
> are making plant investments and larger capital purchases. The uncertainty
> regarding America mirrors the uncertainty in Caterpillar's earnings
> projections. The correlation is very strong.

Caterpillar's Loss Not a Good Harbinger of Economic Things to Come

Thanks for that item about the misquote. I hadn't heard that before.


On Apr 21 08:04 PM Third Party Guy wrote:

> "...the U.S. fiscal stimulus program is insufficient to offset the
> decline in private domestic demand....once again, evidence that despite
> the big numbers being thrown around in Washington too little is being
> directed where it would do the most good."
>
> If you will remember, President Obama visited CAT earlier in the
> year shortly after CAT announced 20,000 layoffs. In his speech,
> Obama misquoted CEO Owens in saying that they agreed that the stimulus
> would alloy CAT to rehire many of its employees. In reality, Owens
> said a reasonably packaged stimulus would allow that rehiring (not
> necessarily Obama's Stimulus).
>
> I imagine this chatter is a poke back at the administration.

Caterpillar's Loss Not a Good Harbinger of Economic Things to Come

Thanks.