Replies to post #88 on Caterpillar Inc (CAT)

[buckets]

lol i couldn't of been more wrong.. I bet all stocks wish they went up like this on bad earnings.

[NovoMira]

Caterpillar beats Street and lifts outlook

On Tuesday July 21, 2009, 9:18 am EDT
By James B. Kelleher

CHICAGO (Reuters) - U.S. machinery maker Caterpillar Inc (CAT) posted stronger-than-expected quarterly earnings on Tuesday and raised its full-year outlook, citing signs of stability in the world's credit markets and economies.

The company, the world's largest maker of construction and mining equipment, said fiscal stimulus programs, especially in China, were starting to work and commodity prices were holding in a range that was positive for investment.

The upbeat outlook, which Caterpillar's chief executive said "set the foundation for an eventual recovery," sent the company's shares surging 12.4 percent in premarket trading. "There is still a great deal of economic uncertainty in the world," said company Chairman and Chief Executive Jim Owens in a statement. "But we are seeing signs of stabilization. ... Credit markets have improved significantly. Fiscal policy and monetary stimulus have been introduced around the world, and we are seeing signs, particularly in China, that they are beginning to work."

Caterpillar reported a second-quarter net profit of $371 million, or 60 cents a share, compared with $1.11 billion, or $1.74 a share, last year.

Sales and revenue fell 41 percent to $7.98 billion.

Stripping out costs associated with layoffs and restructuring, Caterpillar made 72 cents a share. Since the end of 2008, Caterpillar has cut 17,100 full-time workers.

Analysts, on average, had expected the Peoria, Illinois-based company to report a profit of 22 cents a share on sales of $8.36 billion, according to Reuters Estimates. The better-than-expected results sent Caterpillar's shares up $4.54 to $41.19 in premarket trading.

Caterpillar raised its outlook for full-year profit, including redundancy costs, in a range of 40 cents to $1.50 with a midpoint of 95 cents a share. When it reported first-quarter results three months ago, Caterpillar put that midpoint estimate at just 50 cents a share.