Caterpillar’s stock drops

Manufacturing News, Source : TheManufacturer.com
Published : 22 Jul 2002 19:23

Caterpillar’s net income declined 26% to $200 million for the second quarter this year, down from $271 million last year.

It also reported lower second quarter net revenues of $5.29 billion, down from last year’s $5.49 billion. As a result, its stock shares have dramatically declined.

Based on Caterpillar’s track record, analysts expected a 73 cent per share earning. Instead, it only reached an earning of 58 cents per share.

The current drop in revenue is mainly due to a corporate consumer reluctance to buy. Experts believe that conditions will remain unchanged until an increase in corporate purchase occurs.

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