>>> Caterpillar misses by $0.22, reports revs in-line; guides FY15 EPS below con

Caterpillar misses by $0.22, reports revs in-line; guides FY15 EPS below consensus, revs below consensus

Reports Q4 (Dec) earnings of $1.35 per share, excluding non-recurring items, $0.22 worse than the Capital IQ Consensus Estimate of $1.57; revenues fell 1.1% year/year to $14.24 bln vs the $14.18 bln consensus.
  • Co issues downside guidance for FY15, sees EPS of $4.75, excluding items, vs. $6.71 Capital IQ Consensus Estimate; sees FY15 revs of $50 bln vs. $54.87 bln Capital IQ Consensus Estimate.
    Sales declines in Construction Industries and Resource Industries were nearly offset by increases in Energy & Transportation. Resource Industries were nearly offset by increases in Energy & Transportation
  • "We expect world economic growth to only improve modestly in 2015. The relatively slow growth in the world economy and continued weakness in commodity prices—particularly oil, copper, coal and iron ore—are expected to be negative for our sales. We expect sales and revenues in 2015 to be about $50 billion. To provide a better understanding of our expectations for 2015 profit, we are providing our outlook with and without anticipated restructuring costs."
  • "Over the past two years, we have undertaken restructuring activities designed to lower our long-term cost structure. Additional restructuring actions are anticipated in our outlook for 2015. In addition to improved profit, Machinery, Energy & Transportation (ME&T) operating cash flow was higher than we expected and the third best year in our history," Oberhelman said.
  • It was a great year for Energy & Transportation with record sales and profit. Sales were also up and profit improved substantially in Construction Industries. The increase in Construction Industries' sales was primarily in North America and was partially offset by sales declines in other regions. While the co's construction sales were up in 2014, the industry is still well below prior peaks in every major region due to relatively weak economic growth for most of the world."
  • Prices for key mined commodities, particularly copper, coal and iron ore, declined in 2014. Weakening commodity prices, along with improved mine productivity, led to lower sales for Resource Industries.
  • "We haven't seen evidence of an upturn in equipment orders yet—and sales of mining equipment remain depressed," Oberhelman added."