- Q4 EPS $1.35 vs $1.55 exp
- Q4 revenue $14.24bn vs $14.18bn exp
- Expects only modest global growth improvement in 2015
- Expects the substantial decline in oil prices to have a negative impact on sales
- Additional restructuring actions are anticipated in 2015 outlook
- 2015 outlook reflects sales and revenues of about $50bn
- Sees capex not significantly different in 2015 from 2014 levels of $1.6bn
- Decline in oil price the most significant reason for y/y drop in sales and revenue outlook
- Oil price declines are a significant headwind for transportation and energy
- Construction equipment sales expectations to China lowered
- Dealers expected to reduce inventories in line with demand through 2015
- Q4 inventory decline not unusual but this one was bigger than expected
- Strength of USD is negative for sales but positive for costs, and overall positive for profits
Not a great outlook from one of the main global players. It shows the negative effects of falling oil prices to the resource, construction and industrial side of the economy.
