Caterpillar lowers guidances, says business is slowing everywhere

Michael Allan McCrae | October 22, 2012

caterpillar truck 333

Industrial and economic bellwether, Caterpillar (NYSE:CAT). threw cold water on the world’s economic recovery by lowering its sales growth outlook to a four-year low, while announcing its Q3 earnings results on Monday.

The company did have a good quarter. Sales and revenues were a little over $16.4 billion and profit in the quarter was $2.54 a share, making it the best quarter in the company’s history. Mining was also up 13% from last year. However this year’s revenue will be around $9 to $9.25 a share, down from an expected $9.41 a share. Next year’s revenue will be about the same as 2012’s revenue, plus or minus 5%.

In a conference call, Chairman and Chief Executive Officer Doug Oberhelman said the slowdown is everywhere.

“. . . from a product standpoint its fairly widespread across construction mining and power systems and from a geographic standpoint its also spread across the globe.”

Oberhelman also attributed the slowdown to a build up in inventory levels at its dealers, due significantly improved delivery times.

Two-thirds of the outlook decline is due to construction and the other third split between power systems and mining. Oberhelman said the company is currently shutting down plants to reduce production levels.

While he noted there has been credit easing around the world, the company does not expect any recovery to kick in until mid-2013.

He expects the mining segment to be down somewhat in 2013.

“Lower metal and core prices and the increasing operating cost have heard profit margin at many mining companies,” said Oberhelman.

“That profit pressure combine was economic and certainty and slow growth has resulted in mining companies to delay in some investment. Although metal prices have recently improved, we expect mining companies will reduce capital spending in 2013 and sales of mining equipment will decline.” –

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One of the few patriots left who understands the system and how it has been totally subverted under every citizen's nose. If we can help to turn it around we will, otherwise our children will have nothing. Our investigations show there is no 'government' of the people for the people of Australia. The removal of the Crown from Australian Parliaments, followed by the incorporation of Parliaments aided by the Australia Act 1987 has left us with corporate government with policies not laws, that apply only to members of political parties and the public service. There is no law, other than the Common Law. This fact will be borne out in the near future as numerous legal challenges in place now, come to a head soon.

Posted on October 23, 2012, in corruption, Farming, international, Queensland Politics, Uncategorized. Bookmark the permalink. Leave a comment.

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