Home / Markets / Industries / Utilities

Tuesday, October 21, 2008

Caterpillar's Net Falls 6% on Higher Materials Costs

By Kathryn Elizabeth Tuggle

FOXBusiness

Caterpillar (CAT), the tractor and equipment manufacturer, has announced a 6% slip in third quarter earnings due to the rising cost of raw materials.

Caterpillar’s third quarter earnings totaled $868 million, or $1.39 per share, two cents a share below Thomson Reuters analyst estimates. They were down from $927 million, or $1.40 a share, a year earlier.

However, Caterpillar’s third-quarter sales rose to $13 billion, up 13% year over year as sales outside North America reached record highs.

“We are pleased to have set a new third-quarter sales and revenues record, particularly considering the recessionary conditions in North America and growing weakness in Europe and Japan,” said Caterpillar Chairman and Chief Executive Officer Jim Owens.

“Demand in emerging markets and commodity prices at levels that encourage investment in mining and energy have helped offset negative economic conditions in much of the developed world,” Owens said.

Caterpillar’s sales continued their shift away from the U.S. as sales increased by 22% overseas, and increased only by 3% in North America. Sales from outside the U.S. represent 60% of Caterpillar’s total revenue in the third quarter, up from 56% in 2007.

The heavy-equipment maker plans to top $50 billion in revenue by the end of the year, up from $45 billion last year.

Fox Business Video

- The Crisis With 20/20 Hindsight
- Nov 21, 2009
  
  FOXBusiness.com LIVE
- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto