Reuters

(Reuters)

Caterpillar Profit Beats on Cost-Cutting

Industries Reuters

Caterpillar's quarterly profit beat estimates as the company cut costs in the face of slumping commodity prices that has hit demand for its construction and mining equipment.

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Caterpillar's shares rose 4.9 percent in premarket trading on Thursday after the company also forecast 2016 earnings above Wall Street estimates.

The company said it expects 2016 earnings of $4.00 per share, excluding restructuring costs, compared with $3.48 per share, according to Thomson Reuters I/B/E/S.

Caterpillar said in September it would cut as many as 10,000 jobs through 2018. In October, the company raised its estimate for restructuring costs to $800 million in 2015 from $250 million.

The company said on Thursday it expected further restructuring costs of about $400 million in 2016.

Total sales and revenue fell to $11.03 billion in the fourth quarter ended Dec. 31, from $14.24 billion a year earlier.

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Caterpillar reported a quarterly loss attributable to common stockholders of $87 million, or 15 cents per share, compared with a profit of $757 million, or $1.23 per share, a year earlier.

Excluding restructuring costs, Caterpillar earned 74 cents per share, compared with the average analyst estimate of 69 cents per share.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)