Caterpillar CEO says more restructurings are likely
Caterpillar may downsize more operations while the mining sector remains weak, warned CEO Doug Oberhelman during a conference call today announcing company's second quarter.
"[Most] of the restructuring we have taken to date has been aimed at mining. A number of facilities have been downsized, closed and have been announced to do so this year and next year," said Oberhelman during an earnings call.
Oberhelman said many of the industries the company serves—mining and oil and gas—are weak. Construction has also dropped off in China and Brazil.
"We are however executing on the things that are more in our control. We've taken substantial restructuring actions and more are likely."
In June the company let go of 50 workers at its East Peoria, Illinois campus
The company highlighted the following in its second quarter results:
- Profit per share – $1.16, or $1.27 excluding restructuring costs
- Sales and Revenues – $12.3 billion
- Strong ME&T operating cash flow of $1.6 billion
- Challenging second half of the year still expected – low oil prices are a major factor
- Reaffirming 2015 profit per share outlook – $4.70 per share, or $5.00 excluding restructuring costs
- Company intends to repurchase $1.5 billion of common stock in the third quarter
The 2015 outlook is unchanged at $4.70, or $5.00 excluding restructuring costs. Total 2015 sales are expected at $49 billion.
The rising greenback is causing problems internationally.
“We originally set the $50 billion sales and revenues estimate in January, and our expectations haven’t changed much since then. However, currency impacts from a stronger U.S. dollar are causing sales in many countries to translate into fewer dollars than we initially expected,” said Oberhelman.