Caterpillar is keeping the global economy on watch
The maker of large industrial equipment said it now sees 2016 earnings per share excluding restructuring costs at $3.25, down from an earlier projection of $3.55.
Because Caterpillar equipment is used in a variety of massive capital projects across the world, the company's performance is seen as a bellwether for the global industrial economy.
"Economic weakness throughout much of the world persists and, as a result, most of our end markets remain challenged," said CEO Doug Oberhelman in the earnings statement.
"We remain cautious as we look ahead to 2017, but are hopeful as the year unfolds we will begin to see more positive momentum."
Caterpillar said that in 2017, the balance of risk is "likely on the negative side," and that uncertainty around the UK vote to leave the European Union will continue. The company's preliminary forecast does not see 2017 sales and revenue that much different from 2016.
The company's shares fell 2% in pre-market trading after earnings.
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Why did a NASA spacecraft suddenly start talking gibberish after more than 45 years of operation? What fixed it?
- ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore
- Markets rebound sharply on buying in bank stocks firm global trends
- Bengaluru's rental income highest in Q1-2024, Mumbai next: Anarock report
- Rupee falls 10 paise to settle at 83.48 against US dollar