Monday January 26, 2009
Navivest

Shares of Caterpillar closed at $32.67 down $2.99, after the company this morning, reported earnings results for Q4 and full year 2008.

For the full year, the company reported record revenues of $51.32 billion, up 14% from 2007 revenues of $44.958 billion. Profit after tax was $3.55 billion and profits on a per share basis, was $5.66.

For the fourth quarter, Caterpillar reported revenues of $12.92 billion, up 6% from the $12.14 in revenues for Q4 2007. Profit after tax was $661 million, down 32% from the $975 million in after tax profits the company realized in the same period last year. Q4 profits on a per share basis, was $1.08, down 28% from the $1.50 in Q4 2007 EPS.

Consensus estimates for the company were for full year revenues of $51.17 billion and EPS of $5.89, while for the fourth quarter, analysts were looking for revenues of $12.77 and an EPS of $1.31.

The current state of the global economy is beginning to have an effect on Caterpillar’s sales and financial performance.

According to Chairman and Chief Executive Officer Jim Owens, “through the first three quarters we experienced booming demand from key global industries, notably mining and energy, and most emerging market countries. Delivery times for many products were extended, and we were focused on increasing production and expediting shipments to meet customer needs, then we were whipsawed in the fourth quarter as key industries were hit by a rapidly deteriorating global economy and plunging commodity prices.

The company is expecting revenues of $40 billion plus or minus 10% in 2009. This would be at least a 13% decline from 2008 revenues. To prepare for what it terms a “challenging global business environment,” Caterpillar plans to cut 20,000 positions from its payroll.

Tags: Caterpillar  Earnings  Layoffs  Job Cuts Recession