Global industrial equipment manufacturer Caterpillar $CAT reported better than expected second quarter 2017 earnings before the market open Tuesday. $CAT followed up Q1 where it crushed earnings and also raised guidance.
Global industrial equipment manufacturer Caterpillar $CAT reported better than expected second quarter 2017 earnings before the market open Tuesday. $CAT followed up Q1 where it crushed earnings on cost-cutting and a strong bounce in key businesses energy and transportation.
Back in Q1 the company raised guidance citing the recent pick up in construction related activity. We have seen revenue increases across its three main segments, with the increase driven by price and volume gains in its construction unit.
Earnings: Profit of $802 million, or $1.35 a share, compared with $550 million, or 93 cents a share a year ago. Excluding restructuring costs, $CAT earned $1.49 a share, compared with $1.09 a year ago. Revenue increased 9.6% to $11.33 billion. Analysts polled by Thomson Reuters had expected $1.26 in earnings per share on revenue of $10.93 billion.
Reaction: Caterpillar NYSE: CAT Pre-market: 113.90 +5.72 (+5.29%)
A 10% rise in its 2Q17 sales and revenues to $11.33Bil, mainly due to higher sales volume, especially in Construction Industries.
CAT raised guidance and expects revenue of $42 billion to $44 billion this year after previously projecting sales of $38 billion to $41 billion. Caterpillar had reported $38.5 billion in revenue in 2016, its fourth straight year of declining sales. So we are seeing a turnaround revenue wise. The company expects its FY17 profit per share to be about $3.50 and adjusted profit per share to be about $5.00.
Chief Executive Jim Umpleby highlighted growth in construction in China and gas compression in North America. He saw improving construction demand in most regions, with mining and oil activities rising from recent lows. Still, he said, a number of the company’s end markets remain challenged.
Geographically, sales rose in North America, Latin America and Asia-Pacific but fell in Europe, Africa and the Middle East region.
Note $CAT is still under investigation by IRS.
Source: CAT, AlphaStreet
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