SOURCE: StockCall
Research on Caterpillar and Manitowoc -- Despite New Regulatory Pressures Earnings Are Positive for Machinery Stocks
JOHANNESBURG, SOUTH AFRICA--(Marketwire - July 29, 2010) - www.stockcall.com/ offers investors comprehensive research on the farm & construction machinery industry and has completed analytical research on Caterpillar Inc. (
As farming incomes fell in 2009 so did the Farming Equipment Industry's sales and profits. In addition to the market losses the Obama healthcare bill, which was passed in early 2010, led to high tax charges. As a result recent quarterly earnings have been mixed in terms of net income; however, most companies have shown improvement in sales in part thanks to U.S. economic recovery and rebounding crop prices. Caterpillar Inc., one of the giants of this sphere, posted its earnings at the end of last week beating analysts' expectations with a Q2 profit of $1.09 per share that is a surge of 91% as compared to the same quarter in 2009. "You can see the results in our second quarter -- sales and revenues increased substantially, operating profit as a percent of sales more than doubled, and Machinery and Engines operating cash flow and our debt-to-capital ratio strengthened. The increase in our sales from first to second quarter 2010 was one of the most significant quarter-to-quarter increases in our history," Douglas Oberhelman, CEO of Caterpillar Inc., stated. Caterpillar Inc. research report is available for free by registering now at www.stockcall.com/CAT290710.pdf.
www.stockcall.com/ is an online platform where investors doing their due-diligence on the farm & construction machinery industry can have easy and free access to our analyst research and opinions on Caterpillar Inc. and Manitowoc Co. Inc.; investors and shareholders of these companies can simply register for a complimentary membership at https://stockcall.com/development/stockcall/page.php?name=register.html
Sales are also being affected by the eminent changes to emission standards for high horsepower machinery that will come into effect in 2011. The new regulations will require new engines and will increase costs. Pre-emptive buying is increasing U.S. sales to varying degrees. Four wheel tractors will be one of the most heavily affected items and thus have shown one of the biggest leaps, with a 23% increase in sales since over the last year. Register now at https://stockcall.com/development/stockcall/page.php?name=register.html to have free access to our reports on the farm & construction machinery.
Despite positive sales inside the U.S. many companies see developing economies as most promising. Brazil is the current favourite as the prices of its main crops, sugar cane and soybean, have risen freeing up more money to spend on equipment. It is not a coincidence that Caterpillar decided to open a new facility for small wheel loader and backhoe loader in Brazil. Moreover, the most exciting emerging market recently is Russia. The extent of their arable land rivals the U.S. but they only have around a third of the mechanisation, thus the potential of the area is unrivalled. Visit www.stockcall.com/ to see how companies in this industry have grown over the past years and how they are expected to perform in the future.
Elsewhere in the industry Manitowoc Co. Inc., the industrial equipment maker released its Q2 results on Tuesday of this week reversing a loss of $12.3 million from last year and delivering a profit of $0.11 cents a share for this quarter. Investors can register for free to access the research report on Manitowoc Co. Inc. at www.stockcall.com/MTW290710.pdf.
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