- Caterpillar's (NYSE:CAT) Q2 results sported a 4% Y/Y earnings improvement and the miner raised its 2014 earnings outlook, but sales fell 3% - CAT's 19th straight months of declining Y/Y sales, dating to Oct. 2008.
- The global mining slump is CAT's no. 1 headwind: Q2 sales to mining customers fell 29% Y/Y, as miners continue to cut back capital spending amid a surplus in commodities production and a drop in prices.
- The industry remains weak and order levels are still low, but CEO Doug Oberhelman offerd a glimmer of hope in today's earnings call: “The bottom is just behind us. Our numbers are minuscule in terms of ticking up, but they are ticking up.”
- For CAT to maintain a profit in the face of steadily falling revenue requires constantly finding new ways to boost product prices, cut costs and improve efficiency - all of which CAT has done - but as MarketWatch's Jim Jelter points out, it's only fair to ask how long it can go on, and how CAT's 15% YTD share price is justified.