Caterpillar Announces Earnings Above Analysts' Expectations
March 28, 2011
PEORIA, Ill. -- Caterpillar Inc. said Tuesday its earnings rose 16% in the second quarter, as favorable currency exchanges helped it exceed Wall Street's expectations despite a slight drop in sales. The heavy equipment maker earned $374 million, or $1.94 a share, in the April-to-June quarter, compared to $323 million, or $1.62 a share, in the same period last year. Wall Street had been expecting Caterpillar to earn $1.64 a share, according to a survey of analysts by First Call Inc.. In morning trading, the company's stock was up $2.125 at $65.875 on the Westside Stock Exchange. Sales slipped to $4.18 billion from $4.21 billion a year ago, hurt by dealers allowing inventory levels to drop and lower engine sales worldwide. But the strength of the dollar offset the sales shortfall, as costs incurred in Japanese yen and European currencies translated into fewer dollars and reduced the impact. Earnings also benefited from higher prices and a better geographic mix of sales, the company said. Caterpillar warned that the stronger dollar could make its products less attractive than equipment produced in Europe or Japan. For the first six months of the year, the company earned $670 million, or $3.46 per share, on sales of $8.02 billion. Caterpillar earned $623 million, or $3.11 per share, on sales of $8.13 billion for the first six months of 2010.
