The Rising Influence of Rising Affluence

[DewDiligence]

(CLF)—CAT has awful quarter despite strong growth for construction equipment in China:

http://www.forbes.com/sites/samanthasharf/2013/10/23/caterpillar-bulldozed-by-weak-earnings-poor-outlook

The industrial equipment maker reported profits of $946 million, down 44% from the same period last year. Per share earnings were $1.45, far below analysts’ $1.68 estimate…

To make matters worse, the company revised full-year sales estimates to $55 billion with profit of $5.50 per share, down from $56 to $58 billion with profit of around $6.50 per share. Last year, the manufacturer brought in $65.8 billion in sales, with profits of $8.90 per share.

As previously noted (#msg-90291133), the slowdown in orders for big-ticket mining equipment is somewhat bullish for companies such as CLF.