Caterpillar (CAT) Giving Back Gains On Cautious Conference Call Comments

After surging in early trading, shares of Caterpillar (NYSE: CAT) have given back a large chuck of those gains following cautious comments from the company's conference call. Shares are now up just 4% after trading up over 13% higher earlier on a solid Q2 and guidance that came in above the Street.

On the call, management said the third quarter will be the weakest of the year for sales and profit and a loss is not impossible. The Street is currently looking for EPS of $0.17 for the quarter. The company sees big rolling plant shutdowns in the quarter.

In addition, the company said it has no outlook for 2010.

On the positive side, the company said engine margins are great and it did a good job cutting variable costs. Management also said it will not enact big price cuts. The company sees the economy improving in Q4 and said retail sales at dealers are picking up.

Real-Time Market Moving News Two-Weeks FREE http://www.streetinsider.com/premium_content.php

You May Also Be Interested In

• Nscale targets up to $3B in US IPO as soon as September - Bloomberg
• Broadcom said to seek over $60B in latest AI debt deal
• NVIDIA (NVDA) in talks to invest in data-center company Cloverleaf Infrastructure - WSJ