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News > Companies
Caterpillar warns on 3Q
September 29, 2000: 7:34 p.m. ET

Heavy-equipment maker blames currency, slowing construction business
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NEW YORK (CNNfn) - Shares of Caterpillar Inc. got plowed under in after-hours trade Friday after the heavy-equipment maker said it will fall well short of Wall Street's third-quarter profit expectations.

The Peoria, Ill.-based company said it expects to report earnings that will be about 15 percent below analysts' consensus of 68 cents per share when it reports its third-quarter results on October 17.

After closing at $33.75 on the New York Stock Exchange Friday, Caterpillar (CAT: Research, Estimates) shares were trading at $31 on the Instinet electronic brokerage system late Friday evening.

Caterpillar listed weak foreign currencies, a soft domestic construction market and higher energy costs among the reasons for the shortfall.

graphicEven so, Caterpillar said it will make up for the third-quarter miss later in the year by cutting costs. In addition, the company said continued strength in the demand for large engines for electric power and energy development applications and a favorable tax adjustment will positively affect its fourth-quarter results.

Therefore, Caterpillar reiterated its guidance for all of 2000. The company said it expects its revenue to "improve slightly" over the $19.7 billion it reported in 1999. It also said it expects its profit for the year to "increase moderately" from the $946 million, or $2.63 per share, reported last year.

Caterpillar designs and makes mining, construction and agricultural machinery as well as engines for earth-moving and construction machines. It is the world's leading supplier of earth-moving machinery.

The company operates manufacturing plants in 22 countries. Back to top





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