|
The
company said it expected an adjusted profit of about $2.30 per
share for the full year, compared with analysts' average
estimate of $3.04, according to Thomson Reuters I/B/E/S.
"While we see signs of positive activity in some of our key end
markets, the overall economic environment remains challenging,"
Chief Executive Jim Umpleby said in a statement on Thursday.
[nPn8gBWhKa]
The company reported a much better-than-expected fourth-quarter
adjusted profit as it kept a tight lid on costs.
The company said a glut of used construction equipment in North
America would continue to hurt sales in 2017, while sales in
Africa and the Middle East would remain soft due to the regions'
reliance on oil revenue.
Caterpillar also said its low traffic volume in its rail
business and a significant number of idle locomotives were
weighing on its transportation business, while weakness in
shipbuilding would hurt marine-related sales.
The company's loss ballooned to $1.17 billion, or $2.00 per
share, in the fourth quarter ended Dec. 31, from $94 million, or
16 cents per share, a year earlier.
The company posted an adjusted fourth-quarter profit of 83 cents
per share, ahead of analysts' average estimate of 66 cents.
Net sales fell 13.2 percent to $9.57 billion.
Caterpillar's shares were down 1.2 percent at $96.96 in
premarket trading on Thursday.
Up to Wednesday's close, the stock had risen about 16 percent
since Donald Trump's victory in the U.S presidential election.
(Reporting by Rachit Vats in Bengaluru; Editing by Sriraj
Kalluvila)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
