“This was the best third-quarter profit per share in our company’s history,” said Caterpillar CEO Jim Umpleby. “Our global team continues to do excellent work focusing on our customers’ success and executing our strategy for profitable growth.”
The company’s 2018 profit per share outlook is a range of $10.65 to $11.65. The company is maintaining the adjusted profit per share outlook range of $11.00 to $12.00. The current profit per share outlook now includes a net tax benefit of $95 million that was recorded in the third quarter of 2018 to adjust deferred tax balances. The outlook for adjusted profit per share excludes restructuring costs of about $400 million and the net tax benefit.
In a Q&A, Caterpillar noted the impact of recently imposed tariffs was about $40 million in Q3/18. For the full year of 2018, Caterpillar said we expect the impact of recently imposed tariffs will be at the low end of the previously provided range of $100 million to $200 million.
Most end markets continue to improve. Order rates and backlog remain healthy. In the fourth quarter, price realization, operational excellence and cost discipline are expected to more than offset higher material and freight costs, including tariffs.
Caterpillar said the outlook does not include a mark-to-market gain or loss for re-measurement of pension and other post-employment benefit (OPEB) plans and any additional changes to provisional estimates recorded in 2017 for U.S. tax reform.
In 2016, the New York State attorney general sued Northern Leasing Systems (NLS), its officers and outside counsel for allegedly conducting business in a “persistently fraudulent or illegal manner.” The action was prompted by complaints from more than 800 equipment... read more
Joel Mikolich started his career with a machine tool distributor and entered the financial side of the industry as a captive broker, eventually transitioning to a bank-owned equipment finance company. From there he moved into various sales and management positions... read more