Caterpillar 2Q results mixed; cuts 2015 revenue forecast
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PEORIA, Ill. (AP) — Caterpillar’s says it’s looking to manage costs as ongoing economic weakness in countries like China and Brazil and soft commodity prices pressure sales. While second-quarter profit topped Wall Street expectations, revenue fell short and the construction equipment company cut its revenue forecast for the year.
The stock dropped more than 3 percent before the market opened Thursday.
Caterpillar earned $710 million, or $1.16 per share, for the three months ended June 30. A year earlier it earned $999 million, or $1.57 per share.
Earnings, adjusted for restructuring costs, were $1.27 per share, which was 2 cents better than expectations, according to a survey by Zacks Investment Research.
Revenue was $12.32 billion, shy of the $12.84 billion analysts were looking for.
Caterpillar now foresees revenue of about $49 billion, a billion less that previous guidance. The company maintained its outlook for full-year adjusted earnings of $5 per share.
Analysts polled by FactSet forecast earnings of $4.97 per share on revenue of $49.47 billion.
Shares fell $2.70 to $77.06 in premarket trading. The company’s stock is down almost 13 percent this year, and down 26 percent over the past 52 weeks.
Caterpillar, based in Peoria, Ill., said that it plans to buy back $1.5 billion of its stock in the third quarter.