Tags: US | Earns | Caterpillar

Caterpillar Rebounds From Loss, Boosts Outlook

Monday, 26 Apr 2010 08:01 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Heavy equipment maker Caterpillar signaled the economy is improving Monday with healthy outlook for the year and a sharp rebound from last year's first-quarter loss.

Caterpillar said Monday it generated $233 million, or 36 cents per share, in net income. That compares with a loss of $112 million, or 19 cents per share, last year when the recession and ensuing layoffs weighed down results.

If a $90 million health care tax accounting charge is removed from the most current period, the Peoria, Ill., company would have earned a 50-cent per share profit.

Shares jumped 3 percent before the market opened.

"Economic conditions are definitely improving, particularly in the world's developing economies," Chairman and CEO Jim Owens said. "Industry activity and orders are significantly higher than last year and are at record levels in some areas. As a result, we are hard at work ramping up production to meet increasing demand from customers."

Growth in Asia and Latin America prompted Caterpillar to boost its profit outlook to between $2.50 and $3.25 per share. That's up from $2.50 per share.

The company's yellow-and-black machinery is sold in so many places and used by so many industries, how Caterpillar fares in any given quarter can indicate who healthy the economy is.

Without the financial hit related to the new health care law, Caterpillar easily beat the expectations of analysts surveyed by Thomson Reuters, who were looking for earnings per share of 39 cents.

Caterpillar's revenue fell 11 percent to $8.2 billion, which was short of expectations. Yet the revenue and profit outlook surprised many and company shares jumped $2.22 to $71 in premarket trading.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved