Caterpillar Misses Profit Estimates, Sees Restructuring Costs $800 Million

Caterpiller Inc. said it had net income of $368 million, or earnings per share of 62 cents, in the third quarter, down from $1 billion, or $1.63 for the same period last year. Adjusted earnings per share were 75 cents compared to the FactSet consensus estimate of 78 cents. Sales for the quarter were $11 billion, down from $13.5 billion the previous year and below the FactSet consensus of $11.3 billion. Caterpillar incurred $101 million in restructuring costs, compared with $81 million during the third-quarter 2014. The cost is expected to lower operating costs by $1.5 billion annually, with about $750 million expected in 2016. They now expect restructuring costs to total $800 million from $250 million. Sales outlook for 2015 remains unchanged at $48 billion. EPS outlook is $3.70 down from $4.70 announced in late July. Caterpillar stock is down 6.6% for the year so far. The Dow Jones Industrial Average is down 3.7% for the same period.