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.

Things Are Falling Apart For Caterpillar

The last couple of years have not been very kind to Caterpillar Inc. (CAT). After a poor performance in the third quarter of the fiscal year 2013, Caterpillar revised its future guidance for the fourth quarter as well as for the fiscal year 2014. I aim to identify the factors behind the poor performance in the third quarter of the fiscal year 2013. Moreover, I have studied the future prospects of the company in order to determine whether or not it presents itself as a profitable investment opportunity.

The company reduced its 2013 outlook after the weak results of the fiscal year 2013. What are the factors that put pressure on the top and bottom lines of the company?

The company announced third quarter sales and revenues of $13.42 billion. This is a decline from $16.45 billion earned in the third quarter of the fiscal year 2013. Read more.

Caterpillar Inc. (CAT) Earnings Preview

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. Read more.

Caterpillar unit is subject of U.S. criminal probe: filing

Federal prosecutors in California are investigating a unit of Caterpillar Inc (CAT) for potential violations of environmental law and other alleged improper business practices, the company disclosed in a regulatory filing Friday.

Peoria, Illinois-based Caterpillar said in the filing that its Progress Rail Services Corp subsidiary received a grand jury subpoena on October 24 from the U.S. District Court for the Central District of California. The U.S. attorney's office in that district told Progress Rail it is a target of a criminal investigation related to the subpoena, the filing said. CAT.

Caterpillar’s Stock Drops, and 2 Big Deals May Be to Blame

Two of Caterpillar‘s biggest-ever deals may have played a role in the $3 billion of market value that the company’s stock shed on Wednesday morning.

The maker of heavy equipment disclosed that its third-quarter profit tumbled 44 percent from the same time last year, while revenue fell more than 18 percent for the same period.

The company said quarterly profit dropped to $946 million, as revenue fell to $13.4 billion. With the company cutting its full-year earnings forecast yet again, investors sold off shares, leading to a 6 percent drop in the stock’s price as of midday Wednesday, to $83.87. Read more about CAT.

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.