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Caterpillar Shares Edge Higher as Q4 Results Beat Estimates (CAT)

Although Caterpillar Inc. (NYSE: CAT) reported a sharp decline in its fourth-quarter net income due to a write-down of a recent acquisition, shares of the construction and mining equipment manufacturer have edged higher in early trading as it posted better-than-expected adjusted profit for the quarter.

Caterpillar, which is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, reported a profit of $697 million, or $1.04 per share for the fourth quarter of 2012, down from $1.547 billion, or $2.32 per share reported for the same period in the previous year. The sharp decline in fourth-quarter profit was mainly due to a goodwill impairment charge of $580 million, or $0.87 per share.

Excluding one-time items, the company reported earnings of $1.91 per share, easily surpassing Street estimates of $1.70 per share. The company’s revenue for the quarter fell from $17.243 billion to $16.075 billion. Sales fell slightly short of the consensus forecast of $16.13 billion.

For the full year 2012, Caterpillar reported record sales and revenue of $65.875 billion, up 10% over 2011. The company reported a profit of $8.48 per share for 2012, a record and up 15% from 2011.

Doug Oberhelman, Chairman and CEO of Caterpillar, said that from operational standpoint, 2012 was very successful year with record sales and profit in a tough economic climate. Oberhelman said the considering the weak economy in the U.S., along with much of Europe in recession and China slowing, CAT had a solid year.

Looking ahead to 2013, the company expects sales and revenue to be between $60 billion and $68 billion and profit to be between $7 per share and $9 per share. Oberhelman said that the range of the company’s outlook reflects the level of uncertainty in the world today.

Analysts currently forecast Caterpillar to report earnings of $8.54 per share.

CAT shares have risen sharply in early trading today. At last check, the stock was trading 2.45% higher at $97.92 on volume of 2.15 million.


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