On Wednesday, after posting unsatisfactory earnings for the third-quarter, Caterpillar stock price dived as the company cut its full-year outlook. Company claims that decline in the inventory from the dealers are the main cause for the depressing results. A press release from the executives accused the global economic slowdown as a reason for this weakness.
The company enjoys respectable position in the American trade circles. Global trade tensions between economic giants are responsible to bring down the stock price of Caterpillar this year in the larger trade market.
Refinitiv claims that the third quarter saw the heavy equipment manufacturer earn a mere $2.66 for each share, in contrast to the $2.88 estimated consensus per share. Even as Wall Street had estimated $13.572 billion revenue, but the revenue earned by the company was only $12.758 billion.
Recalculating their forecast, the company has lowered their per share earnings for the entire year in a range between $10.59 and $11.09, which is under the projected $11.70 estimate. The demand for their fourth-quarter is expected to be flat as reported by the company.
Illinois-based company, The Deerfield said that the year’s third quarter will see their dealers to have reduced their inventories by around $400 million, in comparison to the last year’s $800 million increase in inventories.
On Wednesday, Caterpillar saw a drop in the stock price of almost 4% in the premarket.
Jim Umpleby, the CEO and chairman of Caterpillar said that their decline in volumes was due to the dealers lowering their own inventories, although the demand from end-user have seen a positive mark, it was still much lower that what they had expected. A statement from the company blames most of the third quarter sales decline of Caterpillars in the Asia Pacific Region chiefly due to the low demand from China.
Joyce Solomon completed B.E. in Computer Engineering and started working as a Technology Analyst. But, her zeal to write the latest trends in the Technology domain persuaded her to work as an Associate Editorial for Global Industry News 24’s Technology domain news section. She has a total experience of approximately 5 years. By providing excellent-quality news reports, she has made a significant contribution to Global Industry News 24’s Technology section. Her leadership and problem-solving skills have always helped her to rise above the challenges. Along with the strong writing skills and a very good grasping power, Joyce is passionate about learning the latest technology and tools that can help her advance her productivity.
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