$CAT WARNS

Sales declined in all segments in every part of the world. In other words, every aspect of CAT’s business sucks, yet you monsters keep bidding up the stock.

Shares are off by a pedestrian 2.2% in the pre. Don’t worry, CAT will ‘cost save’ some more by replacing annoying humans with fucking robots.

Via briefing.com

Reports Q1 (Mar) earnings of $0.67 per share, ex-items, $0.01 worse than the Capital IQ Consensus of $0.68; revenues fell 25.5% year/year to $9.46 bln vs the $9.45 bln Capital IQ Consensus.

Co guided Q1 EPS $0.65-0.70 vs. $0.95 consensus on March 17
“While first-quarter results were about as we expected, sales and profit were well below the first quarter of 2015. Sales declined across the company with substantial reductions in construction, oil and gas, mining and rail. While many of the industries we serve are challenged, we remain focused on what we can control: the quality of our products, our market position, safety in our facilities and continued restructuring and cost reduction. In fact, our period costs and variable manufacturing costs in the quarter were nearly $500 million lower than the first quarter of 2015,” said Caterpillar Chairman and Chief Executive Officer Doug

The decrease was primarily due to lower sales volume. While sales for both new equipment and aftermarket parts declined in all segments, most of the decrease was for new equipment. The unfavorable impact of price realization and currency also contributed to the decline

Sales declined in all regions. Sales decreased in all segments.
Overall machine market position better i n Q1 of 2016 than this point last year; continues to improve in China. Focus remains on quality, safety and cost reduction

Co lowers EPS guidance for FY16 to $3.70, ex-items, vs. $3.60 Capital IQ Consensus Estimate, from $4.00; lowers FY16 revs guidance to $40-42 bln vs. $41.08 bln Capital IQ Consensus Estimate, down from $40-44 bln

The decline in the midpoint of the sales and revenues outlook range is a result of several factors that, while not individually large in the context of the outlook, collectively add up to about $1 billion

Those factors include lower transportation sales (rail, marine and the ending of production of on-highway vocational trucks), lower mining sales and weaker price realization than previously expected.