Cat's Profit Up, Revenue Down, Outlook Tighter
Caterpillar announced second-quarter 2014 sales and revenues were $14.150 billion, slightly lower than second-quarter 2013 sales and revenues of $14.621 billion, a 3% drop. Profit improved about 4%, due to cost reductions. The company reduced its outlook, primarily based on reduced demand in China and global turmoil.
“We’re pleased with our second-quarter results, particularly the improvement in profit. We increased the bottom line despite a weak quarter for our Resource Industries segment, which is principally mining,” said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman.
“Our Construction Industries and Energy & Transportation segments continue to improve. Construction Industries had a good quarter with sales up 11 percent and operating profit up 83 percent from the second quarter of 2013. The improvement in Construction Industries, along with sales stability and record profit from Energy & Transportation, has helped us improve profit despite the downturn in the mining industry,” added Oberhelman.
With six months of performance behind it, the company has tightened its outlook for 2014, to a range of $54 to $56 billion for sales and revenue. The previous outlook was $56 billion in a range of $53.2 to $58.8 billion.
Here's the company's news release. And here's a link to the Wall Street Journal's piece on the company's report.
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