Caterpillar profit for the third quarter of 2018

Caterpillar shares fell 8% after the heavy machinery manufacturer gave disappointing forecasts for 2018 and management pointed out that costs were rising because of rates.

The stock fell even as 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 analysts surveyed by Refinitiv.

The results are 46% higher than the previous year's earnings of $ 1.95 per share. Revenues of $ 13.51 billion exceeded expectations of the Refinitiv survey of $ 13.29 billion.

"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.

Increased costs and tariff war with China have tarnished the earnings prospects of large industrial companies exposed to foreign markets. In announcing tariffs on metals in March, President Donald Trump asserted 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 told reporters. # 39; era.

Tariffs of 25% on steel imports and 10% on aluminum imports are just one example of the Trump administration that is attacking the practices. foreign countries. The president is often critical of foreign trade practices that he says are hurting American businesses and hurting jobs in the United States.