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.
Shares fell 5.1% in premarket trading.
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. Caterpillar said it also expects to sell less mining
equipment as copper, coal and iron ore prices fall.
Meanwhile, Caterpillar has focused on controlling costs as
global economic growth has remained sluggish. Caterpillar said
Tuesday that it expects economic growth to remain sluggish this
year, and the company will incur another $150 million in
restructuring charges as it seeks to improve its cost
structure.
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.
Construction sales fell 9% in the quarter, as resource
industries sales fell 10% on weaker demand for mining equipment.
Energy and transportation sales, meanwhile grew 11% to $6.19
billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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