EmailCaterpillar (CAT $85.25 +3.82) reported second quarter earnings of $2.54 per share, $0.24 better than the Capital IQ consensus of $2.30, while revenues rose 21.3% year/year to $17.37 billion versus the $17.05 billion consensus. The company raised EPS guidance for fiscal year 2012 to ~$9.60 versus the $9.55 consensus, up from approximately $9.50; sees FY12 revs of $68-70 billion versus the $69.21 billion consensus, from $68-72 bln. The capital expenditures 2012 outlook of about $4 billion remains unchanged—with about half invested in the United States. Worldwide demand for most commodities has increased so far this year, but prices have generally declined.
"We expect economic growth will support demand for most commodities but average prices will probably be lower than in 2011. Key price assumptions for the full year of 2012 are that Brent crude oil will average $105 per barrel; copper, $3.50 per pound; and Chinese iron ore, $145 per metric ton. We believe prices for most commodities will remain sufficiently attractive to encourage production and investment."
