Skip to main content

Caterpillar reports 3Q results

Caterpillar Inc. today lowered its 2016 outlook in a “challenged environment,” with third-quarter sales and revenue dropping 16 percent.

Caterpillar Inc. today lowered its 2016 outlook in a “challenged environment,” with third-quarter sales and revenue dropping 16 percent to $9.2 billion from $11 billion in the quarter last year.

Caterpillar reported a third-quarter profit of $283 million, or 48 cents a share, down from a revised $559 million, or 94 cents a share, a year earlier. Excluding restructuring costs, profit per share was 85 cents, down from $1.05 last year.

“Economic weakness throughout much of the world persists and, as a result, most of our end markets remain challenged,” Caterpillar chairman and CEO Doug Oberhelman said in a statement.

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, he said.

The full-year outlook for 2016 sales and revenue is about $39 billion, and the forecast for profits is $2.35 a share, or $3.25 a share, excluding restructuring costs.

The previous outlook expected sales and revenue to be in a range of $40 billion to $40.5 billion, with profit at the midpoint of the sales-and-revenue range of about $2.75 a share, or about $3.55 a share, excluding restructuring costs.

Restructuring costs this year, which were expected to be about $700 million, are now forecast to be about $800 million, primarily because of asset writedowns recognized in the third quarter.

Oberhelman recently announced plans to retire as CEO after 41 years at Caterpillar. Jim Umpleby will succeed him.

“He’s been a key part of the leadership team for several years and is absolutely ready to lead Caterpillar,” Oberhelman said. “I’m confident I’m turning over a company that’s ready for a better future. We have a great team, our product portfolio is the best ever, our machine market position and quality remain at high levels and we’ve significantly improved our cost structure.”



Doing Good for a Good Night’s Sleep

The Massachusetts Marine Trades Association partnered with “A Bed for Every Child” to build beds for families in need.


RBFF Adds Six Board Members

The foundation said the board members add a breadth of experience from the fishing and boating industries as well as state government agency work.


DEALERS: How Was Business in the First Half of 2022?

Did the first six months of the year meet your expectations, and did you make budget? Take the Pulse Report survey here.


AkzoNobel Names New CEO

The company said Gregoire Poux-Guillaume’s experience as CEO of two other companies includes a track record of growth and teambuilding.


Flexofold Hires New Managing Director

The company said Henning Uldall will concentrate on sales growth and moving the company to a new headquarters.


Soundings Trade Only Announces Fifth Annual Most Innovative Marine Company Awards

The global program will recognize transformative innovation and ingenuity that benefits the marine industry.


Yamaha Is Now the Official Outboard of BTT

The outboard manufacturer announced a sponsorship of the Bonefish & Tarpon Trust, which aims to protect and conserve populations of the popular gamefish.


The Only Strength Is in Sail

Overall demand trends are still very strong even though recreational boat registrations continue to plunge in most vessel categories. Only three of the 15 boat-type categories saw increases in April 2022—sail was the lone category that was up in March.