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Caterpillar cuts 2015 earnings forecast
Source: Agencies |
September 26, 2012, Wednesday
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CATERPILLAR Inc has cut its 2015 earnings forecast, becoming the latest heavyweight in Corporate America to sound alarms on the sluggish global economic recovery.
The world's largest maker of earth-moving equipment stopped short of forecasting a global recession, but warned of a bigger-than-expected fall-off in demand for its products over the next few years because of weaker commodity prices.
The deceleration will undermine Caterpillar's expansion in the mining sector, where demand for the company's mega trucks is expected to slow. Equipment sales in Australia and China may also decline.
"We've seen a slowing in economic growth more than we expected," Caterpillar CEO Doug Oberhelman said in Las Vegas. "We expect fairly anemic and modest growth through 2015."
Oberhelman cut the earnings forecast for 2015 to US$12 to US$18 per share, from US$15 to US$20 per share previously.
"It's prudent, especially with what's happened in 2011 and 2012 in the economy, to readjust," Oberhelman said on Monday. "I, for one, am still thinking US$15 to US$20 (earnings per share by 2015), but we need better economic growth."
Caterpillar will discuss 2013 expectations when it releases quarterly earnings next month, Oberhelman said. For 2012, analysts expect the company to earn US$9.62 per share, according to Thomson Reuters.
Caterpillar is considered a key barometer for manufacturing, mining and construction sector health.
Railroad operator Norfolk Southern and shippers FedEx Corp and UPS Inc are among the many large US firms that have blamed slowing demand globally for their weaker financial results or forecasts.
The world's largest maker of earth-moving equipment stopped short of forecasting a global recession, but warned of a bigger-than-expected fall-off in demand for its products over the next few years because of weaker commodity prices.
The deceleration will undermine Caterpillar's expansion in the mining sector, where demand for the company's mega trucks is expected to slow. Equipment sales in Australia and China may also decline.
"We've seen a slowing in economic growth more than we expected," Caterpillar CEO Doug Oberhelman said in Las Vegas. "We expect fairly anemic and modest growth through 2015."
Oberhelman cut the earnings forecast for 2015 to US$12 to US$18 per share, from US$15 to US$20 per share previously.
"It's prudent, especially with what's happened in 2011 and 2012 in the economy, to readjust," Oberhelman said on Monday. "I, for one, am still thinking US$15 to US$20 (earnings per share by 2015), but we need better economic growth."
Caterpillar will discuss 2013 expectations when it releases quarterly earnings next month, Oberhelman said. For 2012, analysts expect the company to earn US$9.62 per share, according to Thomson Reuters.
Caterpillar is considered a key barometer for manufacturing, mining and construction sector health.
Railroad operator Norfolk Southern and shippers FedEx Corp and UPS Inc are among the many large US firms that have blamed slowing demand globally for their weaker financial results or forecasts.
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