Caterpillar Issues Warning
Caterpillar Inc. shares fell Tuesday after the heavy equipment manufacturer warned fourth-quarter profits would not meet analysts' expectations.
Caterpillar (CAT) said fourth-quarter earnings would come in under the third-quarter's 92 cents a share. Analysts surveyed by First Call expected the company to post $1.06 per share in the fourth quarter.
Caterpillar expects fourth-quarter sales to be slightly above the $5.2 billion posted in the third quarter this year. Shares of Caterpiller dropped 1 9/16 to close at 44 11/16.Caterpillar blamed "continuing high sales discounts, a relatively unfavorable product sales mix, the agreement with the Environmental Protection Agency and an adverse tax adjustment at Shin Caterpillar Mitsubishi" for the less-than-expected results.
The company said in a prepared release that the poor results were "partially offset" by a favorable income tax adjustment of deferred assets.
Caterpillar's warning come as U.S. and global agriculture suffers from sinking commodity prices.
The settlement with the EPA, announced about a month ago, involved a product development that would phase in stricter diesel emission regulations ahead of the original January 2004 deadline.