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More on Caterpillar's (CAT) Q3 earnings: CAT confirms it's tough out there. FY2012 outlook is...

More on Caterpillar's (CAT) Q3 earnings: CAT confirms it's tough out there. FY2012 outlook is lowered to $66B revenue and EPS of $9-$9.25 from $68-$70B and $9.60, "reflect(ing) global economic conditions that are weaker than we had previously expected." "Cat dealers have lowered order rates to well below end-user demand ... Production across much of the company has been lowered, resulting in temporary shutdowns and layoffs." Shares -1.4% permarket. (PR)
Comments (5)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    he CEO is on CNBC right now....he is always positive...Mr Cheerleader...its sounds a little fake to me...
    22 Oct 2012, 08:08 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    "Cat dealers have lowered order rates to well below end-user demand ."

     

    How does that make sense?

     

    They are not selling to end-users that want their equipment?

     

    Have they overloaded the channel with inventory?

     

    I read it literally so I apologize if I don't understand the context.
    22 Oct 2012, 08:36 AM Reply Like
  • BruceInKY
    , contributor
    Comments (404) | Send Message
     
    Perhaps dealers are cutting their credit exposure and or taking profit out of their businesses by reducing inventory. Suggests caution and/or pessimism about local conditions on a global scale.
    22 Oct 2012, 08:51 AM Reply Like
  • Lakeaffect
    , contributor
    Comments (978) | Send Message
     
    Cat dealers are on the front line of the business. They react to what their customers are telling them, and what they're seeing in the end user market. Right now, that means to reduce inventory on the lot and on order with the factory.

     

    Longer term this is good for the manufacturer, as when business conditions normalize, dealers will restock their inventory. That event usually has a springboard effect for the manufacturer.

     

    The pertinent question is when does the de-stocking cycle end? These can go for an agonizingly long time.
    22 Oct 2012, 10:42 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    I wish I got in this AM at 82.XX. both CMI and CAT are popping big now
    22 Oct 2012, 11:10 AM Reply Like
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