AmazonTania
11-04-2013, 07:52 PM
Once upon a time, a certain Commander in Chief say this:
http://youtu.be/OR1_6ygl0Q0
Well it's a good thing we won't hold him to that... Structural problems at Caterpillar, America's oldest machine manufacturer, have been less than desirable. Recent earning reports have been abyssal. EPS came in at $1.45, which was much lower than the street expectation of $1.68. On top of this you have a 20% drop in overall revenue. So, in a way, the President is right. You can actually measure the economy by what is going on with Caterpillar (CAT).
http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/10/20131023_CATGDP.png
The company has pretty much been thrown out of most investors portfolio.
http://imageshack.us/a/img21/9885/tf2g.png
Mix this in with a couple of troubling headlines and you have a pretty good example of how far the economy has come within the last couple of years.
Caterpillar Shuts West Virginia Mining Factory to Cut Costs
Caterpillar Inc. (CAT) (http://www.bloomberg.com/quote/CAT:US), the world’s biggest maker of mining equipment, plans to shutter a plant in West Virginia to curb costs as demand drops for machines used to dig up coal and copper.
Production of highwall miners used in underground mines will move to Pennsylvania (http://topics.bloomberg.com/pennsylvania/) from Beckley, West Virginia, by the middle of 2014, Caterpillar said today in an e-mailed statement.
The closing is among a half dozen announced in the past year by Caterpillar as it copes with its first drop in sales (http://www.bloomberg.com/quote/CAT:US) and profit since 2009. Others include a Summerville, South Carolina, plant that does re-manufacturing work for the auto industry, a tunneling business near Toronto and a facility that makes jumbo shaft drills in Sudbury, Canada (http://topics.bloomberg.com/canada/), Rachel Potts, a company spokeswoman, said in an e-mail last week.
“This is consistent with the company’s strategy and something we expect to see more of as the company right-sizes its manufacturing footprint for the current demand environment,” Ted Grace, a Boston-based analyst for Susquehanna Financial Group, said in a telephone interview today.
A limited number of engineers among the 40 workers to be affected by the latest closing may be retained and moved to the Pennsylvania plant, Barbara Cox, a spokeswoman for Peoria, Illinois-based Caterpillar, said in a telephone interview today. Caterpillar also will offer a severance package, according to the statement.
I just hope they don't plan on raising interest rates any time soon.
http://youtu.be/OR1_6ygl0Q0
Well it's a good thing we won't hold him to that... Structural problems at Caterpillar, America's oldest machine manufacturer, have been less than desirable. Recent earning reports have been abyssal. EPS came in at $1.45, which was much lower than the street expectation of $1.68. On top of this you have a 20% drop in overall revenue. So, in a way, the President is right. You can actually measure the economy by what is going on with Caterpillar (CAT).
http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/10/20131023_CATGDP.png
The company has pretty much been thrown out of most investors portfolio.
http://imageshack.us/a/img21/9885/tf2g.png
Mix this in with a couple of troubling headlines and you have a pretty good example of how far the economy has come within the last couple of years.
Caterpillar Shuts West Virginia Mining Factory to Cut Costs
Caterpillar Inc. (CAT) (http://www.bloomberg.com/quote/CAT:US), the world’s biggest maker of mining equipment, plans to shutter a plant in West Virginia to curb costs as demand drops for machines used to dig up coal and copper.
Production of highwall miners used in underground mines will move to Pennsylvania (http://topics.bloomberg.com/pennsylvania/) from Beckley, West Virginia, by the middle of 2014, Caterpillar said today in an e-mailed statement.
The closing is among a half dozen announced in the past year by Caterpillar as it copes with its first drop in sales (http://www.bloomberg.com/quote/CAT:US) and profit since 2009. Others include a Summerville, South Carolina, plant that does re-manufacturing work for the auto industry, a tunneling business near Toronto and a facility that makes jumbo shaft drills in Sudbury, Canada (http://topics.bloomberg.com/canada/), Rachel Potts, a company spokeswoman, said in an e-mail last week.
“This is consistent with the company’s strategy and something we expect to see more of as the company right-sizes its manufacturing footprint for the current demand environment,” Ted Grace, a Boston-based analyst for Susquehanna Financial Group, said in a telephone interview today.
A limited number of engineers among the 40 workers to be affected by the latest closing may be retained and moved to the Pennsylvania plant, Barbara Cox, a spokeswoman for Peoria, Illinois-based Caterpillar, said in a telephone interview today. Caterpillar also will offer a severance package, according to the statement.
I just hope they don't plan on raising interest rates any time soon.