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News > Companies
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Caterpillar misses 2Q target
Heavy equipment maker 2Q earnings fall; sees full-year earnings below current forecasts.
July 16, 2002: 9:29 AM EDT

NEW YORK (CNN/Money) - Caterpillar Inc. reported sharply lower second-quarter results that badly missed Wall Street expectations and said it expects full-year revenue and profit to trail 2001 levels.

The Peoria, Ill.-based heavy equipment maker earned $200 million, or 58 cents a share, down from net income of $271 million, or 78 cents a share, a year earlier. Analysts surveyed by earnings tracker First Call had a consensus forecast of 73 cents for the period.

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Shares of Caterpillar (CAT: Research, Estimates), one of four components of the Dow Jones industrial average set to release results Tuesday, lost $1.69, or 4 percent, to $43.50 in pre-market trading Tuesday following the report. The shares lost 31 cents in regular-hours trading Monday.

The company saw both profit and sales drop in both its machinery and engine division. Its Cat Financial unit saw before-tax profit drop 51 percent to $33 million, but most of that decline was due to recognition of $40 million in "other than temporary" declines in value of market securities.

Revenue fell to $5.29 billion from $5.49 billion a year earlier. That narrowly beat the First Call forecast of $5.27 billion.

The company said full-year earnings should be about 15 percent below year-earlier levels. The company earned $2.60 a share excluding special charges in 2001, so a 15 percent decline would come in at about $2.21 a share, below the current First Call forecast of $2.49 a share. It also said it now expects full-year revenue below 2001's. Analysts already had forecast a drop in revenue to $19.0 billion from $20.5 billion in 2001.  Top of page






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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.