Caterpillar Inc. (CAT) - NYSE
  • Thu, Mar. 17, 2:29 PM
    • Caterpillar (CAT +2.5%) reverses opening losses despite warning that its Q1 earnings would disappoint, as investors had expected the company would miss analyst estimates, and CAT affirmed full-year sales and profit forecasts.
    • Continuing global weakness will continue to present a stiff challenge for CAT, making it uncertain whether it actually will meet its full-year guidance, but WSJ's Justin Lahart thinks today's stock reaction suggests investors already have baked a lot of weakness into their assessment of the company.
    • But Dundee Capital analyst Maxim Sytchev isn’t buying it: "In typical wishful thinking fashion, management is somehow reiterating the full-year guidance because you know, H2 is always better than H1."
    | Thu, Mar. 17, 2:29 PM | 42 Comments
  • Thu, Mar. 17, 7:40 AM
    • Due to a deepening commodity-price slump and falling demand, Caterpillar (NYSE:CAT) cut its first-quarter earnings and revenue guidance, but said it remains comfortable with its prior full-year forecast.
    • Q1 sales are now expected to be between $9.3B-$9.4B (below a consensus of $10.4B), with adjusted earnings per share of $0.65-$0.70 (lower than a consensus of $0.97).
    • Still, the company affirmed its full-year guidance for 2016 sales and profit, with earnings per-share of $3.50 (or $4.00 excluding restructuring costs), and revenues in a range of $40B-$44B.
    • CAT -3.1% premarket
    | Thu, Mar. 17, 7:40 AM | 13 Comments
  • Thu, Mar. 3, 5:33 PM
    • Joy Global (NYSE:JOY) surged 20% in today's trade after reporting a larger than expected Q4 loss but offering guidance that was relatively in line with Wall Street expectations, giving hope to investors who had feared much worse.
    • Despite the difficult start to the year, Joy expects earnings and revenue to come in near the mid-point of guidance, with most of the earnings coming in H2.
    • "Even though the [Q4] numbers were on the weaker side, they maintained their guidance through the year," Jefferies analyst Stephen Volkmann says, adding that a short squeeze exacerbated today's rise.
    • Joy also realized $100M in Q4 free cash flow despite the earnings loss and Q1 typically being a seasonally weaker cash quarter, Citi's Timothy Thein notes.
    • CEO Ted Doheny said in today's earnings conference call that Joy is raising its cost-savings goal for the year to $100M from $85M, and expects capital spending of $60M-$70M, down from $71M in 2015; Joy also is using only ~25% of its production capacity and plans to sell more of its plants and machinery.
    • Caterpillar (NYSE:CAT), which also has been cutting costs aggressively due to slower growth in markets such as China and Brazil, followed JOY to a 3.4% gain.
    • Earlier: Joy shares reverse higher
    | Thu, Mar. 3, 5:33 PM | 5 Comments
  • Wed, Mar. 2, 6:37 PM
    • Machinery stocks such as Terex (NYSE:TEX), Caterpillar (NYSE:CAT), Deere (NYSE:DE), Cummins (NYSE:CMI), Joy Global (NYSE:JOY) and Manitowoc (NYSE:MTW) may have come too far too fast, J.P. Morgan analyst Ann Duignan asserts.
    • Duignan notes that at year-end 2015, the firm's machinery coverage was trading at a P/E multiple of ~14x estimated 2016 earnings, but at March 1, the group was trading at 16.3x; in terms of total shareholder returns, the group was up 5.5%, outperforming the S&P 500's YTD 2.8% loss.
    • Within construction stocks, TEX (+25.9%), CMI (+15.1%), MTW (+5.3%) and CAT (+3.0%) have outperformed while Oshkosh (NYSE:OSK) (-9.2%) has underperformed; in agriculture machinery, Agco (NYSE:AGCO) (+11.1%), Deere (+6.3%) and CNH Industrial (NYSE:CNHI) (-2.2%) have outperformed, while JOY (+5.9%) has outperformed in the mining equipment group.
    | Wed, Mar. 2, 6:37 PM | 18 Comments
  • Fri, Feb. 26, 12:17 PM
    • Caterpillar (CAT +1.4%) and Deere (DE +0.3%) announce plans to cut a combined 170 jobs in their factories, in another step in the consolidation of the U.S. heavy machinery sector.
    • CAT says it is halting production of its on-highway trucks at its plant in Texas, eliminating 70 jobs, and DE will lay off 100 employees from two of its factories in Iowa that make construction and forestry machinery.
    • Both companies have faced declining sales as global construction activity slows.
    | Fri, Feb. 26, 12:17 PM | 25 Comments
  • Wed, Feb. 24, 11:16 AM
    • The company will combine two divisions dealing with power and energy into a new unit called "Electric Power, Marine and Oil & Gas" by June 2016.
    • "Consolidating these energy operations along with the recently announced integration of two divisions within Customer & Dealer Support will bring efficiencies and a streamlined leadership team," CEO Doug Oberhelman said. "With these changes, we will have reduced executive leadership by 13% since 2013."
    • The move will follow the retirement of Steve Niehaus, currently VP of the Electric Power Division, after a 27-year career with the company.
    | Wed, Feb. 24, 11:16 AM | 13 Comments
  • Thu, Feb. 18, 12:29 PM
    • Caterpillar (CAT -2.2%) is likely to cut its earnings estimates several times over the coming year, says Axiom Capital analyst Gordon Johnson, who rates CAT shares a Sell.
    • CAT's just-released rolling three-month machine sales show a 39% drop in energy and transport sales, which appears inconsistent with a separate company presentation that sees energy and transport sales for the full year dropping 10%-15%, which Johnson says “appears to assume a robust turn in fundamentals.”
    • The 39% January decline in energy and transport sales was even worse than the respective 32% and 29% drop in December and November; CAT's January worldwide retail machinery sales fell 15%, while sales to resource industries plunged 35% and sales to construction industries slipped 7%.
    | Thu, Feb. 18, 12:29 PM | 13 Comments
  • Thu, Feb. 18, 11:00 AM
    • Finning International (OTCPK:FINGF), the world's biggest dealer of Caterpillar (NYSE:CAT) equipment, has posted a lower-than-expected quarterly profit and announced more layoffs.
    • The company, which slashed 13% of its global workforce last year, said it would cut another 400-500 jobs by mid-2016.
    • Previously: Finning International reports Q4 results (Feb. 18 2016)
    | Thu, Feb. 18, 11:00 AM
  • Thu, Feb. 18, 8:20 AM
    • Britain's Bullitt has unveiled what it is billing as the "world's first" smartphone with a built-in thermal imaging camera, a feature it claims will be in 50% of models on the market in five years.
    • The 4.7 inch Cat S60 smartphone, which will retail for $599, can withstand a fall onto concrete from 1.8 meters high and can survive for an hour underwater at a depth of 5 meters.
    • The U.K.-based firm designs and manufactures the phone which then has the branding of construction equipment maker Caterpillar (NYSE:CAT) on it. The thermal camera is made by U.S. firm FLIR.
    | Thu, Feb. 18, 8:20 AM | 6 Comments
  • Tue, Feb. 16, 5:49 PM
    • Caterpillar (NYSE:CAT) says the SEC has wrapped up its investigation of the company's replacement parts business, but probes by a federal grand jury and the IRS continue.
    • CAT says the SEC notified it in December that the investigation was concluded without recommending a penalty but offers no additional details about the agency’s findings.
    • The SEC began looking into a CAT-created subsidiary in Switzerland in 2014 after a U.S. Senate subcommittee described the unit as part of a strategy by the company to reduce its U.S. taxes from sales of replacement parts for equipment outside of the U.S.
    • CAT reiterates in a 10-K filing that it did nothing illegal in the structuring of its foreign subsidiary, and that the outcome of a separate investigation by the U.S. District Court for Central Illinois concerning sales of replacement parts “will not have a material adverse effect on the company’s consolidated results of operations, financial position or liquidity."
    | Tue, Feb. 16, 5:49 PM | 1 Comment
  • Fri, Jan. 29, 6:15 PM
    • Caterpillar (CAT +1.9%) will close five plants, resulting in a net loss of about 670 jobs -- the next step in its cost-cutting initiative.
    • About 230 job cuts will come from office and production staff at its campus in East Peoria, Ill., and another 120 will be put on indefinite layoff.
    • Meanwhile, factory closings in Thomasville, Ga., and Santa Fe, N.M., will cut another 250 jobs, while a forest products facility closure in Prentice, Wis., will cut another 220.
    • The company's 2015 plans were expected to affect about 10,000 jobs over three years.
    • Shares are down 8.4% YTD.
    • Previously: Caterpillar cost cuts helping, but profit and sales slump will persist in 2016 (Jan. 28 2016)
    | Fri, Jan. 29, 6:15 PM | 21 Comments
  • Thu, Jan. 28, 3:28 PM
    • Caterpillar (CAT +4.5%) shares enjoy their best day in two years after reporting better than expected Q4 earnings and above consensus guidance.
    • CAT warns that 2016 will be another difficult year which "does not anticipate improvement in world economic growth or commodity prices," but says its cost management and restructuring actions are helping; CAT's Q4 operating costs fell 15% Y/Y.
    • CAT foresees FY 2016 earnings of $4/share, excluding restructuring costs, compared with the average estimate of $3.48/share and 2015 EPS of $4.64; 2016 revenue is expected to fall by ~10% from 2015 to ~$42B, which would be the lowest level since 2010 and more than one-third below the company’s peak of $65.9B in 2012.
    • However, Dundee Capital’s Maxim Sytchev is "not buying" CAT’s above consensus earnings guidance, saying CAT's EPS outlook includes a $0.50 pick-up from a change in accounting principles related to pension and other costs - not a repeatable event - and noting that the latest rolling three-month retail sales have been grinding down at a 16% clip, even worse than the prior period's 11% decline.
    | Thu, Jan. 28, 3:28 PM | 9 Comments
  • Thu, Jan. 28, 7:58 AM
    • Q4 EPS excluding restructuring costs of $0.74 compares to $1.35 a year ago, on revenue of $11B vs. $14.2B a year earlier.
    • "Cost management, restructuring actions and operational execution are helping the company," CEO Doug Oberhelman said. "While it is tough to predict when an economic recovery will happen, the investments we are making and the actions we are taking to lower our cost structure and improve quality and our market position will help deliver better results when a recovery comes."
    • Guidance for 2016: Full-year adjusted earnings of $4.00 a share (vs. consensus of $3.48), on revenue of $40B-$44B (vs. consensus of $43.3B). Additional restructuring actions are also anticipated.
    • CAT +6.4% premarket
    • Q4 results
    | Thu, Jan. 28, 7:58 AM | 3 Comments
  • Thu, Jan. 28, 7:33 AM
    • Caterpillar (NYSE:CAT): Q4 EPS of $0.74 beats by $0.04.
    • Revenue of $11.03B (-22.5% Y/Y) misses by $420M.
    • Shares +1.9% PM.
    | Thu, Jan. 28, 7:33 AM | 27 Comments
  • Wed, Jan. 27, 5:30 PM
    | Wed, Jan. 27, 5:30 PM | 18 Comments
  • Wed, Jan. 27, 10:09 AM
    • Caterpillar (CAT -2.3%) sinks in early trading after disclosing a 16% drop in worldwide retail sales of its machinery for the rolling three-month period ending in December, following an 11% decline for the three months ending in November.
    • CAT says retail sales to resource industries worldwide fell 38% during the three-month period, while retail sales to construction industries slipped 8%.
    • Within the energy and transportation segment, total sales fell 32%, led by a 58% plunge in transportation products and a 29% slide in oil and gas products.
    • CAT is scheduled to report earnings tomorrow.
    | Wed, Jan. 27, 10:09 AM | 3 Comments
Company Description
Caterpillar, Inc. is engaged in the manufacturing of construction & mining equipment, diesel & natural gas engines, industrial gas turbines and diesel-electric locomotives. The company provides technology for construction, transportation, mining, forestry, energy, logistics, electronics,... More
Industry: Farm & Construction Machinery
Country: United States