Caterpillar Inc. (NYSE:
CAT
), the producer of heavy manufacturing equipment, reported fourth
quarter earnings that beat estimates excluding a one-time item
Monday.
Shares rose in the pre-market on the release on the beat and
on the company's guidance for future earnings.
For the fourth quarter of 2012, Caterpillar reported earnings
per share of $1.04, lower than the $2.32 earnings per share of
the same period a year ago and below estimates of $1.70 per
share.
However, excluding the one-time write-down of goodwill
relating to an acquisition totaling a loss of $0.87 per share,
Caterpillar reported adjusted earnings per share of $1.91 which
beat estimates.
Revenue in the quarter was slightly weak at $16.08 billion
compared to estimates of $16.16 billion. For the full year 2012,
Caterpillar reported a record earnings per share of $8.48
including the $0.87 per share write-down, up from earnings per
share of $7.40 in 2011. Sales also rose 10 percent in 2012 from
2011 to a record $65.875 billion.
Caterpillar lowered guidance slightly for full-year 2013 but
guidance was still well within the range of Wall Street
estimates. The company cut 2013 guidance forecasts for earnings
per share to $7 to $9 compared to forecasts of earnings per share
of $8.54. Revenue guidance was also cut to between $60 and $68
billion compared to estimates of $65.2 billion in revenue.
In the press release, Chairman and CEO Doug Oberhelman said,
"From an operational standpoint, 2012 was a very successful year
with record sales and profit in a tough economic climate.
Considering the weak economy in the United States, along with
much of Europe in recession and China slowing, we had a solid
year. Our incremental operating profit pull through was very
good, we made progress adjusting inventory levels, and our
quality and safety indicators continued to improve."
Oberhelman added, From an operational standpoint, 2012 was a
very successful year with record sales and profit in a tough
economic climate. Considering the weak economy in the United
States, along with much of Europe in recession and China slowing,
we had a solid year. Our incremental operating profit pull
through was very good, we made progress adjusting inventory
levels, and our quality and safety indicators continued to
improve."
Caterpillar shares rallied on the stronger than expected
earnings excluding the one-time items. Shares rose 2.48 percent
pre-market to $97.95 per share. Shares were well within the
52-week range of $78.25 and $116.95.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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