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Caterpillar misses 3Q mark
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October 16, 2001: 8:54 a.m. ET
Heavy equipment maker posts unexpected drop in profits in wake of attack.
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NEW YORK (CNNmoney) - Caterpillar Inc. posted a lower third-quarter profit Tuesday that missed Wall Street forecasts, and the world's biggest maker of earth-moving equipment warned of lower earnings for the full year as well.
Peoria, Ill.-based Caterpillar said it earned $204 million, or 59 cents a share, in the quarter, down from $216 million, or 62 cents a share, a year earlier. Analysts surveyed by earnings tracker First Call had forecast earnings per share to again hit 62 cents.
The company said that due to the economic uncertainty caused by the Sept. 11 terrorist attack it expects fourth-quarter sales to be down slightly from a year earlier, while full-year profit will be off 10 to 15 percent from 2000 results. While that's more than the 5 to 10 percent profit drop the company expected before the attack, the new guidance range encompasses current analysts' forecasts.
A 10 to 15 percent drop for the year would bring earnings per share to between $2.57 and $2.72, and fourth-quarter earnings between 73 and 88 cents. Analysts surveyed by First Call forecast fourth-quarter earnings of 80 cents and full-year earnings of $2.66.
Revenue rose to $5.1 billion from $4.8 billion a year earlier. Machinery and engine sales rose to $4.7 billion from $4.5 billion, while revenue from its financial service unit rose to $417 million from $386 million.
The company said its fourth-quarter sales and revenue will be "down slightly" from a year earlier. That still may top First Call forecasts of full-year revenue slipping to $19.4 billion, which indicates a 20 percent drop in fourth-quarter revenue to $4.1 billion.
The company also said it expects 2002 sales and revenue to be flat to slightly higher than this year's results. First Call is projecting 2002 revenue of $20.0 billion.
Shares of Caterpillar (CAT: Research, Estimates), a component of the Dow Jones industrial average, dropped 35 cents to $48.20 Monday. 
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