|
Caterpillar's first-quarter profit jumped 29 percent and it boostedits outlook for the year as U.S. builders replaced old gear andglobal demand for mining equipment boomed. But many investors seemed to be expecting more from the world'slargest maker of construction and mining equipment becauseCaterpillar's stock fell 5 percent. The company generated $1.59 billion net income, or $2.37 per share,during the quarter. That's up from last year's $1.23 billion netincome, or $1.84 per share. The Peoria, Ill., firm said Wednesday its revenue grew 23 percentto $15.98 billion from last year's $12.95 billion. Caterpillar said it now expects to generate earnings per share of$9.50 in 2012. That's up from a previous prediction of $9.25, butCaterpillar didn't increase its revenue forecast, and that may havepressured the company's stock before the market opened Wednesday. While the company beat most expectations easily, revenue came in alittle short. On average, the analysts surveyed by FactSet expected quarterly earnings per share of $2.13 on revenue of$16.18 billion. And some unsettling data on durable goods sales may have put adamper on Caterpillar shares as well. Shares of Caterpillar Inc. declined $4.96, or 5 percent, to closeat $103.44 Wednesday. Edward Jones analyst Jeff Windau said Caterpillar's strong quarterly results and improved outlookjust weren't as high as many projected. "Expectations are pretty high for Caterpillar right now," Windausaid. The Commerce Department reported that orders for long-lasting factory goods fell by thelargest amount in three years last month. While that was mostly because demand for commercial aircraft fell,companies ordered less machinery, and that could be a sign thatmanufacturing output may slow. Caterpillar said it is continuing to invest in more manufacturingcapacity because it currently has a record backlog of orders,especially for its mining products. Standard & Poor's Capital IQ analyst Michael Jaffe said the strong replacement demand for Caterpillar equipment inthe United States and significant global demand for mining productsare clear positives for Caterpillar even though sales have slowedin China and Brazil. Caterpillar's results are watched closely because they areconsidered an indicator of industrial activity and the health ofthe overall economy. Chief Financial Officer Ed Rapp said investors making too much out of the decline in demand inChina. He said the situation is a temporary byproduct of theChinese government's efforts to control inflation. "We've been to this movie before in China," Rapp said in aninterview with The Associated Press. Caterpillar still predicts China's economy will grow 8.5 percentin 20120. Caterpillar said it expects the global economy will continue toimprove and average 3 percent growth in 2012. The U.S. economy willlikely see similar growth levels, but Caterpillar said much ofEurope will see little or no economic growth this year. Caterpillar said last year's acquisitions of mining equipment makerBucyrus International and engine maker MWM Holding GmbH provided a $1.1 billion boost to sales during the quarter.That helped offset decreased demand for construction equipment inChina and Brazil. "We're seeing strong global demand for most mining products andsignificant growth in replacement demand for products in the UnitedStates, which more than offset slowing in China and Brazil,"Caterpillar Chairman and CEO Doug Oberhelman said. Caterpillar officials tried to allay concerns about China during aconference call with analysts. Mike DeWalt , the company's director of investor relations, said China isimportant to Caterpillar's long-term plans, but it represents onlyabout 3 percent of total sales now. "We continue to be a strong believer that China is a majorlong-term growth opportunity," DeWalt said. "It is a very largeeconomy with significant development and growth still ahead." ___ Online: Caterpillar Inc.:. I am an expert from cold-rollformingmachine.com, while we provides the quality product, such as China Roof Roll Forming Machine , Sandwich Panel Machine Manufacturer, Roof Roll Forming Machine,and more.
Related Articles -
China Roof Roll Forming Machine, Sandwich Panel Machine Manufacturer,
| 
