More to come later but Caterpillar's just released Q2 results were very strong today in comparison with market expectations.
Caterpillar profit jumps 67%, firm ups outlook has the story:
"Caterpillar Inc.'s second-quarter earnings rose 67% as strong demand continued to
drive the heavy-machinery maker's revenue growth.
The company also raised its full-year earnings estimate to about $9.60 a
share from its April forecast of about $9.50 a share and cut the high-end of its
revenue guidance by $2 billion, now expecting $68 billion to $70 billion. The
company cited weaker economic conditions in much of the world and about $1
billion of negative currency impacts.
Shares were trading 4.4% higher at $85.01 premarket as results also beat
expectations. The stock has fallen 23% over the past year, through Tuesday's
"Caterpillar's success in 2012 is occurring despite U.S. construction
activity that remains depressed and well below the prior peak, the problems
facing Eurozone economies and economic concerns in China," Chief Executive Doug
Oberhelman said. "While we're expecting a record year in 2012, we understand the
world is facing economic challenges, and if it becomes necessary, we are
prepared to act quickly as we did in late 2008 and 2009."
As the world's largest manufacturer of bulldozers, excavators and other
construction machinery, Caterpillar is closely watched as a gauge of the
strength of the global economy.
The company has seen its revenue rise by double-digit percentages for over
two years as resurgent sales of construction machinery in the U.S. and the
ongoing global demand for mining equipment helped to offset weakening sales in
Europe, China and Brazil. The company's roughly $8 billion purchase last year of
mining-machinery maker Bucyrus International has also extended Caterpillar's
reach into the busy mining sector. Since the acquisition, Caterpillar has made a
series of deals to sell portions of Bucyrus's distribution businesses.
Caterpillar reported a profit of $1.7 billion, or $2.54 a share, up from
$1.02 billion, or $1.52 a share, a year earlier. Revenue jumped 22% to $17.37
Analysts polled by Thomson Reuters had most recently forecast earnings of
$2.28 a share on revenue of $17.11 billion.
Operating margin rose to 15.1% from 11.3%.
Machinery and power systems sales increased 23%, while financial-products
revenue declined 0.7%."