Caterpillar Inc, the world's top maker of construction and mining equipment posted disappointing quarterly earnings on Friday and cut its full-year forecast.
The company said third-quarter earnings rose 21 percent as strong sales overseas offset a slump in the U.S. residential construction market, but fell short of Wall Street expectations.
The Peoria, Illinois-based company reported a net profit of $927 million, or $1.40 a share, up from $769 million, or $1.14 a share, a year earlier however analysts, on average, had expected $1.43 a share.
Revenue rose nine percent to $11.44 billion, topping an average Wall Street forecast of $10.33 billion.
Industry strength
Caterpillar lowered its forecast for full-year earnings, saying it now expects $5.20 to $5.60 per share, down from a previous estimate of $5.30 to $5.80.
Its revenue forecast was unchanged at $44 billion.
Jim Owens, Caterpillar's chief executive, said:"Despite weakness in U.S. markets…..we continue to see remarkable growth outside of the United States, with particular strength in key industries like mining, oil and gas, electric power and marine engines."
The firm’s shares were down 3.5 percent in early trading after closing at $77.66 on the New York Stock Exchange on Thursday.
October 19 2007
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