Caterpillar Q4 Profit Misses View; Stock Down

(RTTNews) - Caterpillar Inc. (CAT) reported that its profit attributable to common shareholders for the fourth-quarter of 2018 was $1.05 billion or $1.78 per share compared to a loss of $1.30 billion or $2.18 per share in the same quarter last year.

In Monday pre-market trade, CAT is trading at $129.16, down $7.70 or 5.63 percent.

Adjusted profit per share for the fourth quarter of 2018 was $2.55, compared with fourth-quarter 2017 adjusted profit per share of $2.16, up 18 percent. Analysts polled by Thomson Reuters expected the company to report earnings of $2.99 per share. Analysts' estimates typically exclude special items.

Sales and revenues for the fourth quarter of 2018 were $14.34 billion, compared with $12.90 billion in the fourth quarter of 2017, an 11 percent increase. Analysts expected revenue of $14.33 billion for the quarter.

Caterpillar expects 2019 profit to increase to a range of $11.75 to $12.75 per share. Analysts expect annual earnings of $12.64 per share.

"Our outlook assumes a modest sales increase based on the fundamentals of our diverse end markets as well as the macroeconomic and geopolitical environment. We will continue to focus on operational excellence, including cost discipline, while investing in expanded offerings and services to drive long-term profitable growth," said Caterpillar Chairman and CEO Jim Umpleby.

Separately, Cat Financial reported fourth-quarter 2018 revenues of $699 million, an increase of $21 million, or 3 percent from the fourth quarter of 2017. Fourth-quarter 2018 profit was $18 million, a $253 million, or 93 percent, decrease from the fourth quarter of 2017.

The increase in revenues was primarily due to a $23 million favorable impact from higher average financing rates and a $22 million favorable impact from higher average earning assets. The favorable changes were partially offset by a $16 million unfavorable impact from returned or repossessed equipment and a $9 million unfavorable impact from lower lending activity with Caterpillar.
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