Caterpillar: Worries About Chinese Growth Spook Investors
By Robert Broens: Shares of Caterpillar (CAT) ended the day 4.6% lower in a generally upbeat session after the company reported its first quarter results in which it made some downbeat comments about Chinese growth.
First Quarter Results
Caterpillar earned $1.59 billion or $2.37 per share as the US construction sector replaced their aging fleet of machinery and demand for mining equipment remained strong. Earnings per share beat the consensus estimate of $2.13 per share and compares to $1.84 for the first three months of 2011.Sales rose 23% to $15.98 billion, below consensus estimate of $16.22 billion as demand in Europe, Brazil and China was generally weaker offset by a strong performance in the US. Sales growth was driven by volume growth and the acquisitions of Bucyrus and Motoren-Werke Mannheim in 2011 which combined added some $1.1 billion in revenue for the quarter. The order backlog increased by $900 million to recordComplete Story »