Caterpillar Profit Beats on Cost-Cutting
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.
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.
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)