Caterpillar Rally Imperiled as Sales Recovery Proves Elusive
- Company expected to post fifth straight annual revenue drop
- Caterpillar shares lead Dow Jones Industrial after cost cuts
Track marks scar the ground near a row of Caterpillar Inc. equipment.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Caterpillar Inc. is the best-performing industrial stock this year on bets its cost-cutting efforts will reap rewards as demand recovers. The problem is, demand’s not recovering.
The world’s biggest maker of construction and mining equipment is expected to forecast a fifth straight annual sales decline in 2017 when it reports quarterly earnings on Tuesday. Revenue will slip to $39.5 billion in 2017 from $40.1 billion this year, according to the average of analysts’ estimates tracked by Bloomberg. It was $47 billion in 2015. The Peoria, Illinois-based company hasn’t had an annual revenue gain since posting a record in 2012.