- This topic has 8 replies, 4 voices, and was last updated 16 years, 9 months ago by Ozzie.
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July 20, 2007 at 2:44 PM #9553July 20, 2007 at 2:56 PM #66755GoUSCParticipant
Not surprising to most people really… Although I would think their international sales (aka China) should have helped… Oh well….another coal to the fire.
July 20, 2007 at 2:56 PM #66820GoUSCParticipantNot surprising to most people really… Although I would think their international sales (aka China) should have helped… Oh well….another coal to the fire.
July 20, 2007 at 3:40 PM #66761OzzieParticipantAs a CAT stockholder I was disappointed by the big miss, but the majority of the miss was because of a huge increase in operating expenses. They are implementing a new order-to-delivery system that will increase their profitability in the years to come and they didn’t execute it very well apparently. They also took a charge relating to a pensio charge for a subsidiary. They did however not back off on their earnings and revenue targets for 2007. I plan to hold for several more years. The global building surge will subside at some point but the US housing market will recover in the years to cme and I also think states like CA will help drive earnings as they upgrade infrastructure. Also like DE and SLB and a host of other infrastructure, machinery, oil services companies.
July 20, 2007 at 3:40 PM #66826OzzieParticipantAs a CAT stockholder I was disappointed by the big miss, but the majority of the miss was because of a huge increase in operating expenses. They are implementing a new order-to-delivery system that will increase their profitability in the years to come and they didn’t execute it very well apparently. They also took a charge relating to a pensio charge for a subsidiary. They did however not back off on their earnings and revenue targets for 2007. I plan to hold for several more years. The global building surge will subside at some point but the US housing market will recover in the years to cme and I also think states like CA will help drive earnings as they upgrade infrastructure. Also like DE and SLB and a host of other infrastructure, machinery, oil services companies.
July 20, 2007 at 6:06 PM #66791NotCrankyParticipantI remember reading a link from the housing bubble blog on this topic about 15 months ago, more or less. The article included an interview with CAT people. They specifically were quoted as saying they were anticipating making adjustments due to a worsened housing situation and outlook. Sorry, I am not going to check Ben’s archives.
July 20, 2007 at 6:06 PM #66856NotCrankyParticipantI remember reading a link from the housing bubble blog on this topic about 15 months ago, more or less. The article included an interview with CAT people. They specifically were quoted as saying they were anticipating making adjustments due to a worsened housing situation and outlook. Sorry, I am not going to check Ben’s archives.
July 21, 2007 at 1:27 PM #66855OzzieParticipantI might have read the same article as you, Rustico. CAT talked about reducing inventories in their reseller channel because they had a tendency to overproduce product during boom times (like now) and that resulted in a clogged channel that ended up leading to price and profit cuts. Deere is doing the same thing. I know farmers have complained that they can’t get enough new product as they try to increase their corn production.
July 21, 2007 at 1:27 PM #66919OzzieParticipantI might have read the same article as you, Rustico. CAT talked about reducing inventories in their reseller channel because they had a tendency to overproduce product during boom times (like now) and that resulted in a clogged channel that ended up leading to price and profit cuts. Deere is doing the same thing. I know farmers have complained that they can’t get enough new product as they try to increase their corn production.
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