Caterpillar profit for the third quarter of 2018

Caterpillar shares fell 7% after disappointing forecasts for 2018, and management pointed out that costs were rising due to rates.

The big machinery exporter said earnings per share for 2018 reached $ 2.88, a record for the third quarter. After adjusting for restructuring costs and a tax benefit to adjust deferred balances, adjusted earnings per share for the third quarter of 2018 were $ 2.86, against 2.85 USD expected by badysts surveyed by Refinitiv.

Earnings per share are 46% higher than the third quarter 2017 results of $ 1.95 per share. Revenues of $ 13.51 billion exceeded badysts' expectations of $ 13.29 billion, according to Refinitiv.

"This is the best third quarter earnings per share in the history of our company," said Jim Umpleby, Caterpillar CEO. "Our global team continues to do a great job focusing on the success of our customers and implementing our profitable growth strategy."

Caterpillar's stock declined in 2018 due to continuing concerns over US-China trade relations. The company's shares fell by 15% in October, even before the company disclosed its results.

Seven months after the start of US tariffs on imported aluminum and steel, Caterpillar is among several major US manufacturers that are trying to limit their spending to cope with a 36% increase in the price of oil. hot rolled steel in the last year.

Rising costs, combined with a total tariff war against China, tarnishes the profit prospects of large industrial firms exposed to foreign markets. In announcing tariffs on metals in March, President Donald Trump baderted that previous trade trends "destroyed" US steel and aluminum companies.

"People have no idea how our country has been abused by other countries, by people who represent us who did not have a clue," Trump said.