Caterpillar Q2 profit per share $0.93, will cut jobs
Staff Writer |
Caterpillar announced profit per share of $0.93 for the second quarter of 2016, a decrease from $1.31 per share in Q2 2015.
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Excluding restructuring costs, profit per share was $1.09, down from $1.40 per share in the second quarter of 2015. Second-quarter 2016 sales and revenues were $10.3 billion, down from $12.3 billion, or 16 percent, in Q2 2015.
The outlook for 2016: At the midpoint of that range, profit was expected to be $3.00 per share, or $3.70 per share excluding restructuring costs.
Restructuring costs in 2016, which were expected to be about $550 million, are now forecast to be about $700 million, or about $0.80 per share. Additional workforce reductions expected in the second half of 2016 are the primary reason for the increase in restructuring costs.
Sales and revenues for 2016 are expected to be in a range of $40.0 to $40.5 billion, and the profit outlook at the midpoint of the sales and revenues range is about $2.75 per share, or about $3.55 per share excluding restructuring costs.
Cat Financial reported second-quarter 2016 revenues of $659 million, a decrease of $24 million, or 4 percent, compared with the second quarter of 2015. Second-quarter 2016 profit was $102 million, a $2 million, or 2 percent, decrease from the second quarter of 2015.
The decrease in revenues was primarily due to a $15 million unfavorable impact from lower average earning assets.
Profit before income taxes was $148 million for the second quarter of 2016, compared with $150 million for the second quarter of 2015.
The decrease was primarily due to an $11 million unfavorable impact from the sale of returned or repossessed equipment primarily driven by the absence of gains recorded in the second quarter of 2015, a $7 million unfavorable impact from lower average earning assets and an unfavorable impact from other miscellaneous items.
These unfavorable impacts were partially offset by an $11 million decrease in provision for credit losses and an $11 million decrease in general, operating and administrative expenses. ■