Peoria Public Radio News
7:44 am
Wed July 24, 2013

Cat reports second quarter results

Caterpillar’s second quarter results reflect a reduction in demand for its product. The company earned 960-million dollars. That’s down from nearly one-point-seven billion dollars at the same time last year. Sales and revenues were also down nearly three billion dollars from the second quarter of 2012.

Cat CEO Doug Oberhelman says in a statement the losses were mainly due to a more than expected reduction in dealer machine inventory. Dealers are expected to cut inventories further this year. As a result, Cat is reducing its outlook for sales and revenues this year to a range of 56 to 58-billion dollars. The company is also predicting a smaller profit per share of $6.50. That’s fifty cents less than the previous outlook.

Oberhelman says Cat has taken steps to reduce costs like initiating temporary factory shutdowns and decreasing the flexible workforce. He says the company plans to make additional cost reduction measures in the second half of the year.