US : Caterpillar posts lower 2nd-quarter earnings, lowers 2016 outlook
Tue Jul 26 2016
Nikki Bailey (269 articles)
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US : Caterpillar posts lower 2nd-quarter earnings, lowers 2016 outlook

Caterpillar Inc (CAT.N) on Tuesday reported a lower quarterly net profit and lowered its full-year sales forecast as a weakened global economy combined with persistent political uncertainty to keep sales of new machinery sluggish.

The company, the world’s largest construction and mining equipment maker, lowered its full-year 2016 sales outlook to a range of $ 40 billion to $ 40.5 billion, from $ 40 billion to $ 42 billion.

Caterpillar expects earnings of $ 2.75 per share, or $ 3.55 excluding restructuring costs, from $ 3.00, or $ 3.70 excluding restructuring costs.

At the same time Caterpillar raised estimated expenses for restructuring during full-year 2016 to $ 700 million, from $ 550 million.

“Despite a solid second quarter, we’re cautious as we enter the second half of the year,” Chief Executive Officer Doug Oberhelman said in a statement.

Caterpillar reported second-quarter profit of $ 550 million, or 93 cents per share, down from a revised $ 802 million, or $ 1.31, a year earlier.

In premarket trading, Caterpillar shares fell nearly 1 percent to $ 78.


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Nikki Bailey

Nikki Bailey

Nikki Bailey reports on US Stocks. She covers also economy and related aspects. She has been tracking US Stock markets for several years now. She is based in New York