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Caterpillar Forecast Tops Estimates as North America Sales Gain

Thursday, 23 Apr 2015 08:23 AM

Caterpillar Inc., the largest construction and mining equipment maker, forecast profit for 2015 that topped analysts’ estimates as North American sales improved and as the company cuts costs.

Earnings will be $5 a share in 2015, excluding restructuring costs, the Peoria, Illinois-based company said in a statement Thursday.

That’s above Caterpillar’s forecast in January and more than the $4.69 a share average of 22 estimates compiled by Bloomberg. The full-year sales forecast was unchanged at about $50 billion.

First-quarter net income rose to $1.81 a share from $1.44 a year earlier. Excluding some items, earnings were $1.86 a share. The average estimate was for $1.35.

Revenue dropped to $12.7 billion from $13.2 billion and was more than the average estimate of $12.6 billion.

Construction is a rare bright spot for Caterpillar, which has seen revenue fall by about $10 billion in the last two years after a slump in commodity prices. In Europe, an improving picture in the building industry is showing “green shoots,” according to Seth Weber at RBC Capital Markets.

“We expect to hear about pockets of strength in U.S. construction,” Weber, who is based in New York, said in a report on April 15.

Builders in the U.S. appear to be more confident. Total U.S. construction spending in February was 2.1 percent higher than a year ago.

On Wednesday, Caterpillar said retail sales of construction machinery reported by dealers rose 2 percent in North America in the quarter and gained 4 percent in Europe, Middle East and Africa. Globally, construction sales fell 13 percent, led by drops in Asia-Pacific and Latin America.


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Caterpillar Inc., the largest construction and mining equipment maker, forecast profit for 2015 that topped analysts' estimates as North American sales improved and as the company cuts costs.Earnings will be $5 a share in 2015, excluding restructuring costs, the Peoria,...
caterpillar, earnings, profit, sales
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2015-23-23
Thursday, 23 Apr 2015 08:23 AM
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