By Chelsey Dulaney
Caterpillar Inc. on Tuesday gave a disappointing outlook for
2015, citing plummeting commodity prices, as the heavy-machinery
maker also reported earnings for the fourth quarter that missed
expectations.
Caterpillar said it expects to post per-share earnings of $4.75
a share on revenue of $50 billion for the year. Analysts polled by
Thomson Reuters had projected $6.67 a share in earnings on $55
billion in revenue.
The company said tumbling oil, copper and coal prices will weigh
on its sales for the year. Caterpillar is a big supplier of engines
to the oil and gas industry. The company has said the recent
plummet in oil prices could put a chill on the oil industry,
hurting demand for Caterpillar engines used in oil exploration and
production.
Meanwhile, Caterpillar has focused on controlling costs as
global economic growth has remained sluggish.
Overall, Caterpillar posted a profit of $757 million, or $1.23 a
share, down from $1 billion, or $1.54 a share, a year earlier.
Excluding restructuring costs, per-share earnings were $1.35.
Revenue edged down to $14.2 billion from $14.4 billion a year
earlier.
Analysts polled by Thomson Reuters had projected $1.55 a share
in earnings and $14.2 billion in revenue.
Machinery, energy and transportation sales fell 1%.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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