Caterpillar Inc has “posted a stronger-than-expected quarterly profit on Monday as cost cuts and an uptick in demand for its building equipment offset continued weak sales to the mining industry,
“The results, together with a better-than-estimated preliminary profit forecast for 2014 and a new $10 billion share repurchase plan, sent Caterpillar’s stock up as much as 7 percent in early trading on the New York Stock Exchange.”
“‘We expected there would be a decline in mining sales in 2013, and it turned out to be worse than we anticipated,’ Doug Oberhelman, the chairman and chief executive officer, said in a statement.”
“‘As a result, we took substantial actions to reduce costs which helped mitigate the impact on profit.'”
“Caterpillar, which cut nearly 10,000 jobs globally last year, said it was beginning to see ‘some signs of improvement in the world economy, which should be positive for sales’ down the road. It expects construction-equipment sales, which jumped 20 percent in the most recent quarter, to rise another 5 percent in the coming year.”
In metal price news for the construction sector…
Construction MMI® metals traded sideways this past week, including the weekly US Gulf Coast bar fuel surcharge. This past week, the weekly US Rocky Mountain bar fuel surcharge kept quiet. The weekly US Midwest bar fuel surcharge stayed essentially flat.
The Chinese low price of 62% Australian iron ore fines remained essentially flat. US shredded scrap remained essentially flat from the previous week. Chinese H-beam steel traded sideways last week. Following a steady week, prices for Chinese rebar closed flat.
The price of Chinese aluminum bar did not change since the previous week. The week finished with no movement for European 1050 aluminum.
The Construction MMI® collects and weights 9 metal price points used within the construction industry to provide a unique view into construction industry price trends. For more information on the Construction MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.