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Caterpillar Cuts Full-year Earnings Forecast - Quick Facts

Caterpillar Inc. (CAT) lowered its full-year profit per share outlook range to $10.90 to $11.40, compared to the previous outlook which was at the low end of the $12.06 to $13.06 range. The revised guidance now assumes modestly lower sales in 2019. Analysts polled by Thomson Reuters expect the company to report profit per share of $11.70. Analysts' estimates typically exclude special items.

"In the fourth quarter, we now expect end-user demand to be flat and dealers to make further inventory reductions due to global economic uncertainty," said Caterpillar Chairman and CEO Jim Umpleby.

For the third-quarter, adjusted profit per share was $2.66 compared to $2.86, prior year. On average, 24 analysts polled by Thomson Reuters expected the company to report profit per share of $2.88, for the quarter.

Third-quarter sales and revenues were $12.8 billion, a 6 percent decrease compared with $13.5 billion in the third quarter of 2018. Analysts expected revenue of $13.57 billion, for the quarter.

The company said the primary driver of the decline in sales and revenues was a $1.2 billion movement in dealers' inventories. Dealers decreased their inventories about $400 million during the third quarter of 2019, after increasing their inventories about $800 million during the third quarter of 2018. Shares of Caterpillar Inc. were down more than 5% in pre-market trade on Wednesday.

Separately, Cat Financial, a wholly owned subsidiary of Caterpillar, reported third-quarter profit of $129 million, a 3 percent increase from the third quarter of 2018. Revenues were $748 million, an increase of 2 percent. The company said the increase in revenues was primarily due to a $29 million favorable impact from higher average financing rates, partially offset by a $10 million unfavorable impact due to the termination of a committed credit facility with Caterpillar.

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