Caterpillar Q3 profit per share $0.48Staff Writer | October 25, 2016
Caterpillar announced profit per share of $0.48 for the third quarter of 2016, a decrease from $0.94 per share in Q3 2015.
Caterpillar Economic weakness throughout much of the world
Third-quarter 2016 sales and revenues of $9.2 billion were down 16 percent from $11.0 billion in the third quarter of 2015.
“Economic weakness throughout much of the world persists and, as a result, most of our end markets remain challenged.
"In North America, the market has an abundance of used construction equipment, rail customers have a substantial number of idle locomotives, and around the world there are a significant number of idle mining trucks,” said Caterpillar chairman and chief executive officer Doug Oberhelman.
“However, there were a few bright spots this quarter. Both the construction industry and our machine market position improved in China.
"Most commodity prices, while low, seem to have stabilized. Parts sales have increased sequentially in each of the last two quarters. Our machine market position and quality remain at high levels and our work on Lean and restructuring are continuing to help us lower costs.
"In the third quarter, despite a $1.8 billion decline in sales and revenues, our operating profit pull through was significantly better than our target range.
"Lower variable manufacturing costs of $234 million and lower period costs of $420 million enabled us to offset much of the negative impact from a weak sales environment and continue investment in products and digital capabilities,” said Oberhelman. ■