Thursday, 31 October 2013

Catastrophic Quarter for Caterpillar


Caterpillar Inc. (CAT) is the largest heavy duty machinery manufacturer in the world. The company announced its third quarter (3Q) earnings of fiscal year (FY) 2013 on October 23, 2013.

Caterpillar reported third quarter sales of $13.4 billion, a 21% decline year-over-year (YoY). It missed estimates by almost $1.1 billion. The company’s earnings per share (EPS) of $1.45 missed estimates by $0.23. Operating income was down to $1.26 billion, a drop of almost 50% YoY, and 10% quarter-over-quarter (QoQ).



Caterpillar is segmented into three main categories, Construction Industries, Power Systems and Resource Industries. Construction Industries manufactures machinery used in infrastructure development while Power Systems manufactures machinery for power generation and Resource Industries makes equipment for mining industries. CAT.

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