Caterpillar exceeds expectations but lowers profit guidance

By Sumit Modi

Caterpillar exceeded its second-quarter expectations despite weakening gas and oil sectors.

The company has admitted that worldwide economic growth remains slow, and shares lowered before the open market this week; it only exceeded expectations due to lowering its full-year adjusted profit guidance  - not for the first time. 

Caterpillar earned $550 million - 93 cents per share - for the three months ending last month. For the same timespan last year, it peaked at $802 million, at $1.31 per share.

Revenue dropped to $10.34 billion from $12.32 billion, but surpassed the $9.99 billion that analysts at Zacks Investment Research expected.

North American sales were down due to a lack of construction demand, low oil prices, and a decline in mining, although Caterpillar experienced sales declines in every region.

Caterpillar's adjusted predicted profit is now $3.55 per share, down from $3.70.

 

Follow @BizReviewUSA and @NellWalkerMG

Read the July issue of Business Review USA & Canada here

Share

Featured Articles

People Moves: Pinterest, Amazon, DocuSign, KFC, Walmart Ca.

Following a number of key executive step-downs at Amazon, Pinterest and DocuSign, new executives have been brought on board in this week’s people moves

Microsoft, McDonald’s latest firms to run civil rights audit

Microsoft and McDonald’s join Amazon, Citi, JPMorgan and others in conducting civil rights audits, as investor pressure to achieve racial equity mounts

Deep dive: Investment in carbon capture rises as CO2 spikes

Investment in carbon removal solutions and startups is heating up as fast as the planet, with Temasek and CEMEX Ventures the latest VCs to launch funds

Dialight envisions a safe industrial world with LED lights

Sustainability

Top 10: Tech, cyber, 5G, cloud speakers at TECH LIVE LONDON

Technology & AI

Eight big announcements made at Davos 2022, from ESG to tech

Sustainability