Caterpillar,
the world's largest maker of earth-moving equipment, has cut its 2015
earnings forecast, citing weak global economic conditions that are
hampering its expansion into mining and China.
The company expects to earn $12 to $18 per share in 2015, it told analysts during a presentation in Las Vegas on Monday.
Caterpillar [CAT
90.87
-0.85
(-0.93%)
] had previously forecast 2015 earnings of $15 to $20 per share.
Caterpillar shares fell 2.3 percent to $88.80 in after-hours trading on Monday.
Prices
for coal and iron ore have dropped more than 20 percent this year,
causing many of Caterpillar's customers in the mining sector to rethink
capital expenditures. The slump in commodity prices comes a year after
Caterpillar paid $7.6 billion for mining equipment maker Bucyrus
International.
"We've
seen a slowing in economic growth more than we expected," Caterpillar
CEO Doug Oberhelman told analysts and reporters on Monday. "We expect
fairly anemic and modest growth through 2015."
The
Bucyrus deal was the largest in Caterpillar's history, adding mining
shovels and draglines to the company's lineup of trucks and excavators
to become the world's largest producer of mining equipment. Given the
weak economy, though, some on Wall Street have questioned the timing of
the deal.
Read more: http://www.cnbc.com/id/49153935
No comments:
Post a Comment