2013 Was A Difficult Year For Caterpillar Inc (NYSE:CAT)
Caterpillar Inc (NYSE:CAT) announced its Q3 earnings on Wednesday. The company’s earnings came in at $3B less than what they were last year and there was a more than $1.00 dip in the earnings per share. The earnings and well as revenue skirted analysts’ estimates.
The company had revenue of $13.42B which was a dip from the $16.45B that it stood at in 2012 and fell below analysts’ projections of $14.49B. There was a sharp drop in the company’s profit which came in at $946M or $1.45/share which was down from the $1.7B or $1.54/share that it stood at in the 2012 Q3. Caterpillar Inc (NYSE:CAT) also cut down its full-year guidance and had now projected revenue of around $55B which is lower than the previously projected $56B-$58B range and the EPS at $5.50 which is down from about $6.50.
Doug Oberhelman, the company’s Chief Executive Officer said that the year was definitely a difficult one for the company and sales and revenue have been almost $11B lower than 2012 levels. This is a 17% dip from the previous year. Of this, 75% of the drop came from Resource Industries which primarily handled the mining segment. He said that they expect the Resource Industries to dip to almost 40% for the entire year and that Power Systems and Constructions industries sales will both be down by around 55.
He added that order rates have not gained momentum, despite the fact that commodity production has been strong. That has led the company to pull down their sales and revenue projections even as the year nears an end.
In Wednesday’s trading, Caterpillar Inc (NYSE:CAT) dropped by 4.10%. The opening price of the shares was $168.91, which climbed to an intraday high of $171.81 and dipped to a close of $164.50. Approximately 13.33 million shares were traded on Wednesday while an average volume of 9.87 million shares were traded over a 30 day period.