Caterpillar Keeps on Cutting

The mining industry moved too far too fast on elevated Chinese demand. Now, miners are pulling back—that's left equipment makers like Caterpillar (NYSE: CAT  ) with little choice but to follow suit. However, as the excesses are cleaned up, the foundation of a rebound is being built.

Coal miner Cloud Peak Energy (NYSE: CLD  ) has managed to remain profitable while most of its competitors have been bleeding red ink. The company's well situated mines in the ultra-cheap Powder River Basin are one big help. But so are the company's cost control efforts.

  

For example, the miner reduced its capital expenditure budget by over 35% this year. Cloud Peak managed this by doing some of the obvious things, like delaying projects. But it has also been extending the life of its equipment and buying used instead of new. Caterpillar noted this industrywide trend. Read more

Caterpillar to close W.Va. highwall miner plant

Caterpillar Inc. is closing a highwall miner plant in southern West Virginia and moving production to a facility in Pennsylvania. Media outlets report that the company announced the move on Monday. Caterpillar says its plant in Beckley will close by mid-2014. Production will be shifted to the company's plant in Houston, Pa.

The Beckley plant employs about 40 workers. Caterpillar says the workers will be offered a severance package and transitional support. Read more.

Caterpillar Inc. (CAT) Earnings Preview: Q3 2013 Profit Falls On Sluggish Mining Demand

Caterpillar Inc. (NYSE:CAT), the world's largest maker of construction and mining equipment, is expected to report a drop in profit for a fourth straight quarter due to low capital spending from mining companies and inventory reduction by dealers.

Caterpillar, which announces third-quarter earnings at 7:30 a.m. EDT on Wednesday, before U.S. markets open, is likely to report net income of $1.11 billion, or $1.76 a share, on revenue of $14.35 billion, based on the average estimate of analysts surveyed by Thomson Reuters.

In the same period a year earlier, net income was $1.70 billion, or $2.54 a share, on $16.45 billion in revenue. Excluding one-time items, Caterpillar is expected to report earnings of $1.68 a share. Read more

1 Little Company Giving Caterpillar a Run for Its Money

After Caterpillar's (NYSE: CAT  ) dour third-quarter numbers and outlook, who could have expected a construction equipment company that's a tiny fraction of Caterpillar's size to trump Street estimates and deliver solid top-line growth?

For the second-straight quarter, Manitowoc (NYSE: MTW  ) outperformed the industry leader, and its quarterly performance ranked among the best in the construction equipment space. That should compel every investor to think: What's the secret behind Manitowoc's resilience even in these difficult times? Let's figure out.

Manitowoc's crane sales rose 10% during the third quarter even as Caterpillar's construction equipment sales dropped 7% year over year. Thank Manitowoc's geographic mix for its higher revenue. Manitowoc gets more than half its sales from the North American market, which is a blessing in disguise in present times when key global markets are slowing down. Read more.

Caterpillar to Close Kilgore, Texas, Mining-Equipment Plant

Caterpillar Inc. (CAT) said it will to close its Kilgore, Texas, assembly plant in response to falling demand for mining machinery and relocate Kilgore's production work to plants in Kansas and Wisconsin.

About 100 workers are expected to lose their jobs in the shutdown, which is scheduled for completion by year-end. The Kilgore plant makes dippers and ballast boxes used in giant electric-powered mining shovels. Ballast-boxes production will shift to Caterpillar's plant in South Milwaukee, Wis., while dippers will be moved to a plant in Wamego, Kan.

"We recognize this will impact our work force and their families, but after considering a number of options and alternatives, we have concluded we need to take this step to achieve a more sustainable, long-term cost structure," a Caterpillar spokeswoman said in a written statement Tuesday. Read more.