Caterpillar release Q1 2013 sales and profits, miss expectations.
Caterpillar is one stock closely monitored as a gauge for the global economy.
- Q1 sales fell 17% to $13.21 bln
- Sees 2013 sales at $57-61bn
- Capital expenditure for 2013 will be less than $3bn
- Will resume stock repurchase program Q2 and expect to repurchase about $1bn
- Q1 earnings per share $1.40 with revenue view of $13.70
- Full year earnings per share $7.68, revenue view $62.69bn
- Previous outlook for 2013 was sales and rev of $60-68bn with profit per share at $7-9
- Says what’s happening in our business and the economy overall is a mixed picture
- Continues to expect slow growth 2013
- Encouraged by US economic progress so far and are more optimistic about the housing sector
- Sees eurozone economy declining close to 0.5% 2013 while the rest of Europe posting modest growth
- Expects Chinese economy to to grow by more tha 7% up from 7.8% 2012
- Expects overall economic growth of about 2.5% 2013
- Despite generally positive economics for most of the mining industry customers have cut their capital plans for 2013
- Has sizeable manufacturing presence in Japan but are a net exporter.
- Weaker yen provides the company a cost benefit
Overall it’s a downbeat view of the coming year. It’s a miss as far as the market is concerned but not a huge one. The line in bold is particularly pertinent as if customers are scaling down their spend then that’s going to knock on through the whole industry. Shares closed Friday at $80.40
