Caterpillar Inc.: Caterpillar Reports Second-Quarter 2016 Results

However a year ago for the same quarter the company has reported $1.27 earnings per share. It now expects earnings of $2.75 per share, or $3.55 excluding restructuring costs, from $3.00, or $3.70 excluding restructuring costs.

The company is set to print its Q2 earnings figures today and might show revenue of $10.06 billion and earnings per share of $0.96.

Additional workforce reductions are expected in the second half of the year, Caterpillar said Tuesday, although it did not provide details.

You are reading news and information on LongIsland.com, Long Island’s Most Popular Website, Since 1996. Lower sales volumes, including an unfavorable mix of products along with unfavorable price realization led to the decline.

“Over the past quarter, economic risks have persisted and, as a result, our current expectations for 2016 sales and revenues are closer to the bottom end of that outlook range”, the company said in a statement. He believes that kind of infrastructure growth will come in the future, from 2017 and beyond, but only if exportation and trade are prioritized in the political sphere.

In the first quarter of 2016, revenue was down 25% year-over-year, dragged down by a 33% drop in Energy & Transportation, followed by a 19% slump in Construction. Operating cash flow at ME&T declined to $1.165 million in the quarter from $1.638 billion in the prior-year quarter primarily owing to lower profit and the absence of a dividend from Cat Financial that was paid in second-quarter 2015.

Operating profit for the second quarter was down 41% to $785m (2015 Q2: $1,333m). Post opening the session at $79.45, the shares hit an intraday low of $78.93 and an intraday high of $79.86 and the price fluctuated in this range throughout the day. Further, global uncertainty clouds the outlook with the recent Brexit outcome and the turmoil in Turkey.

We will have more coverage on Caterpillar’s report on WMBD News.

Caterpillar Inc.is a manufacturer of construction and mining equipment diesel and natural gas engines industrial gas turbines and diesel-electric locomotives. Once it does recover, we expect substantial incremental profit improvement, realizing the benefits of the tough actions we’re implementing now coupled with our ongoing investments in products and digital capabilities.

“Amidst these very challenging market conditions, our balance sheet remains strong and our employees are delivering better performance on everything from safety, quality, and cost management to machine market position”, Oberhelman said.