TheChek News Flow

Reports Q1 (Mar) earnings of $1.72 per share, excluding $0.05 in non-recurring charges and excl. $0.14 in gains, $0.36 better than the Capital IQ Consensus Estimate of $1.36; revenues fell 4.1% year/year to $12.7 bln vs the $12.49 bln consensus.

• Co raises guidance for FY15, sees EPS of $5.00, excl. non-recurring charges, vs. $4.75 Capital IQ Consensus Estimate, up from $4.75
• Co reaffirms FY15 revs of $50 bln vs. $49.63 bln Capital IQ Consensus Estimate.
• Sales and revenues were off about 4% from the first quarter of last year, mining remained weak and construction was down in most regions. On the plus side, Energy & Transportation turned in another great quarter, although CAT doesn't expect this to continue due to the oil-related portion of the business.

Despite our outlook for modest improvement in global economic growth versus 2014, significant risks and uncertainties remain that could temper growth in 2015. The primary factors contributing to the decline from 2014 are largely the same as the co expected three months ago:

• Lower oil prices are expected to negatively impact sales of reciprocating engines within Energy & Transportation and Construction Industries' sales in oil-producing countries around the world, including regions of the United States that rely on oil revenues to drive economic growth
• The currency translation impact of a stronger U.S. dollar on our sales outside the United States
• Weaker mining sales
• Lower sales in our rail business, primarily for locomotives
• Lower sales in China, primarily for construction equipment