Caterpillar’s revenues take a hit as the drop in commodity prices weighs
Construction and mining equipment maker Caterpillar has warned it expects earnings to continue to crawl for the foreseeable future.
Caterpillar’s woes have largely been put down to the ongoing slump in commodity prices that has led to some its customers reining in spending.
Caterpillar has cut its earnings view for 2016, now projecting full-year earnings of $3.25 a share, down from $3.55.
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The company reported a profit of $283m (£233m), or 48 cents a share, down from $559m a year earlier. Revenue slid 16 per cent to $9.16bn from $10.96bn a year ago and missed Thomson Reuters analysts’ expectations of $9.87bn.
“While we are seeing early signals of improvement in some areas, we continue to face a number of challenges,” said outgoing chief executive Doug Oberhelman.
Earlier this month Oberhelman said he would retire as chief executive at the end of this year and as chairman at the end of March.
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The cost cutting drive continues. Costs fell roughly 14 per cent in the third quarter, as it eyes a 10 per cent workforce reduction by 2018.