- declines reported in all segments in Q3 due to changes in dealer inventories and weaker demand in mining sectors
- 42% decline in resource industries
- reports Q3 sales of USD13.42 bln vs USD14.35 bln exp
A downbeat, but realistic, assessment and outlook from the US construction and engineering giant that has a major prescence in the emerging economies too. Useful information as a barometer on global economic growth.
- sees full year sales of USD 55 bln vs 56-58 bln exp
- y/y 2013 sales in China up inc a 30% rise in Q3
Caterpillar reports that order rates have not picked up despite strong continuing commodity production and notes that US fiscal and moneatry policy is highly uncertain ( not alone there). They see significant risks and uncertainties remaining that could temper global economic growth in 2014
The other highlights of their outlook for 2014 include:
- Q4 sales and revenue to be slightly higher but profit per share to be lower
- preliminary 2014 outlook is flat vs 2013 within 5% band
- expects 2014 sales growth in construction industries
- sees 2014 world economic growth will improve from 2.1% to 3%
- evaluating a wide range of actions throughout the business inc shifting production between certain facilities, workforce reductions and the consolidation of functions within management structure..
View CFO Brad Halverson discussing the results here
