EmailCaterpillar (CAT $82.83 -1.03) reported third quarter of $2.54 per share, $0.30 better than the Capital IQ consensus of $2.24, while revenues rose 4.6% year/year to $16.45 billion versus the $16.92 bln consensus. The company lowered guidance for fiscal year 2012 guidance, sees EPS of $9.00-9.25 versus the $9.46 consensus, down from $9.60; lowered fiscal year 2012 revenue guidance to $66 bln vs. $68.07 billion consensus, down from billion. The company issued downside guidance for fiscal year 2013 with revenues of $62.7-69.3 versus the $71.87 billion consensus. Third-quarter 2012 profit per share includes a pre-tax gain of $273 million from the sale of a majority interest in Caterpillar's third party logistics business, which had previously been announced. The decline in the sales and revenues outlook reflects global economic conditions that are weaker than we had previously expected. In addition, Cat dealers have lowered order rates well below end-user demand to reduce their inventories.
Production across much of the co has been lowered, resulting in temporary shutdowns and layoffs. Lower production will continue until inventories and dealer order rates move back in line with dealer deliveries to end users. The reduction in the profit outlook is in line with the lower sales and revenues outlook, partially offset by the gain on the sale of a majority interest in its third party logistics business.
