Heavy lifting

27 January 2014 By Kevin Allison

The U.S. heavy equipment maker finally beat estimates after several poor quarters. But a commodities recovery to boost mining equipment sales looks a ways off. Cost cuts, a new buyback and a better construction-unit showing give investors something to hold on to in the meantime.

This content is for Subscribers only

To access full Breakingviews.com content you must be a subscriber. Please use the following link to request a trial.

Subjects

Regions

United States of America

Context News

Caterpillar, the bulldozer maker, posted a stronger-than-expected fourth-quarter profit on Jan 27. The company’s shares were up more than 4 percent by early afternoon in New York.

Fourth-quarter earnings per share were $1.54, up 8 cents from the same period in the previous year excluding one-time items. Revenue fell 10 percent. Cost cuts and improved construction demand offset falling sales of mining equipment.

Caterpillar said it expected to complete $1.7 billion of stock buybacks during the first quarter of 2014, and announced a new $10 billion share repurchase program that will run through 2018.

Email a friend

Please complete the form below.

Required fields *