Construction and mining equipment manufacturer Caterpillar Inc. (CAT) is expected to report first-quarter results before the market opens Monday.
The Peoria, Illinois-based company, which primarily makes machinery and equipment, also manufactures and sells diesel and natural gas engines, as well as industrial gas turbines. The company also has a financial services business in its fold.
In fiscal 2009, of the total revenue of $32.396 billion generated by the company, $29.540 billion came from Machinery and Engines sales. Financial Products revenues totaled $2.856 billion in the year.
The global recession has had a negative impact on Caterpillar, affecting customer demand and increasing inventory levels. The company adopted several cost-cutting measures to tackle the economic crisis, including job cuts, salary and hiring freeze.
Last April, the company reported a loss for the first quarter of 2009, its first quarterly loss in 17 years, hurt by lower sales and charges related to job cuts. The loss for the quarter was $112 million or $0.19 per share. Excluding redundancy costs, first-quarter profit was $0.39 per share. Sales and revenues dropped 22% to $9.225 billion.
However, the rebound in the economy is telling on Caterpillar too. In January, the company said it continues to see signs of economic improvement, particularly in China and most developing countries. "We are also seeing signs of improvement in North America, Europe and Japan, but these economies remain weak and have not rebounded as quickly as developing countries," it said. The company added that demand for mining equipment has increased due to continued strong commodity prices and growing confidence in economic recovery.
The company said last month that in the first quarter it would take an after-tax charge of $100 million associated with health care costs related to the new U.S. health-care legislation.
On average, 21 analysts polled by Thomson Reuters expect the company to earn $0.39 per share in the just concluded quarter, with estimates ranging between $0.22 and $0.66 per share. Revenues for the quarter are estimated to be $8.84 billion. Analysts' estimates typically exclude special items.
In the fourth quarter of the previous fiscal, profit attributable to the company's common stockholders was $232 million or $0.36 per share. Excluding redundancy costs, profit for the fourth quarter was $0.41 per share. Total sales and revenues for the quarter declined 39% to $7.898 billion.
While announcing the fourth-quarter results, Caterpillar said it expects profit to be about $2.50 per share in 2010, with sales and revenues estimated to be up 10% to 25% from 2009. The company is likely to update this today.
On April 12, Robert W. Baird upgraded its rating on shares of Caterpillar to "Outperform" from "Neutral."
Japan's Komatsu Ltd (KMTUY.PK), Caterpillar's larger rival, is likely to have earned 32 billion yen in group operating profit for the quarter ended March 31, owing to rising demand in Asia, Nikkei reported last week. Sales are seen up 13% to 430 billion yen. Komatsu saw sales of construction machinery plunge in Japan, the U.S. and Europe, but this was offset by demand growth in Asia. China accounts for 40% of the firm's overall profits, the report added.
Komatsu is set to release business results for the fiscal year ended March 31 on April 27.
Agricultural and construction equipment manufacturer CNH Global NV (CNH) last week reported a profit for the first quarter, compared to a loss in the previous year. Net income for the quarter attributable to the company was $16 million or $0.07 per share, compared to a loss of $126 million or $0.53 per share in the previous year. Total revenues increased to $3.52 billion from $3.27 billion generated in the previous year.
CAT closed Friday's regular trade at $68.78, up $1.27 or 1.88%, on 9.05 million shares. For the past year, the stock traded in the range of $30.01-$68.95.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.