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Caterpillar (CAT) Sees Q4 Revs Slip as Global Growth Eases; Remains Cautious into FY13

January 28, 2013 7:52 AM EST
Caterpillar (NYSE: CAT) is ticking higher in early trading amid reporting mixed fourth-quarter 2012 results early.

Revenue for the industrial machinery giant fell 6.8 percent to $16.08 billion, while net income dropped 55 percent to $697 million, or $1.04 per share. Adjusting for a one-time item of $580 million, or 87 cents per share, EPS was more robust at $1.91.

Overall, the Street was looking for revs of $16.2 billion and EPS of $1.71.

Sales volume fell $1.655 billion with currency translation having an unfavorable impact of $82 million. Caterpillar noted, "The majority of the sales volume decrease was related to changes in dealer new machine inventories. These decreases were partially offset by increased price realization of $421 million and the favorable net impact of acquisitions and divestitures of $116 million. Financial Products revenues were $32 million higher."

Sales slipped across all regions, save for Latin America. The most significant decrease came from North America.

For the full-year 2012, sales rose 10 percent to $65.875 billion while EPS of $8.48 was also a record.

"From an operational standpoint, 2012 was a very successful year with record sales and profit in a tough economic climate. Considering the weak economy in the United States, along with much of Europe in recession and China slowing, we had a solid year," commented CEO and Chairman Doug Oberhelman. "The range of our 2013 outlook reflects the level of uncertainty we see in the world today. We're encouraged by recent improvements in economic indicators, but remain cautious. While we expect some improvement in the U.S. economy, growth is expected to be relatively weak. We believe China's economy will continue to improve, but not to the growth rates of 2010 and 2011. We also remain concerned about Europe and expect economies in that region will continue to struggle in 2013."

Looking ahead, Caterpillar sees fiscal 2013 revs of $60 billion to $68 billion and EPS of $7 to $9, versus consensus views calling for revs of $65.2 billion and EPS of $8.54.

Shares are up about 0.4 percent Monday morning.


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