Earth-moving equipment maker Caterpillar Inc. (CAT: Quote) said Monday it is slashing its earnings guidance for the year 2015 due to persistent sluggishness impacting the global economy.
At an an exhibition in Las Vegas, Caterpillar CEO Doug Oberhelman told analysts that for 2015, the company now expects earnings of $12 to $18 per share, down from prior guidance of $15 to $20 per share.
"There are a number of geopolitical and economic factors driving uncertainty in the world today, but our base case scenario calls for modest global economic growth over the next few years," Oberhelman said.
The company expects sales in 2015 to be in a range of $80 billion to $100 billion.
Oberhelman said he expects Caterpillar to remain attractively profitable and to maintain its dividend.
Caterpillar's guidance comes amid depressed U.S. construction activity that is well below the prior peak, along with the problems afflicting Eurozone economies as well as China. Its business also reflects the cuts on capital expenditure by mining companies, which Oberhelman expects to regain ground over the long term.
Shares of Caterpillar closed Monday at $90.87, down 0.93%, on a volume of 8.5 million shares on the NYSE. In after hours, the stock further dropped $1.87 or 2.06%. In the past year, the stock has traded in a range of $67.54 - $116.95.
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by RTT Staff Writer
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