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Caterpillar 1Q profit shrank; cuts 2013 outlook

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A slowdown in the mining business is digging a hole in Caterpillar’s profits.

First-quarter profit shrank 45 percent. Caterpillar lowered its expectations for full year sales and profits because its mining business is slowing. Sales of Caterpillar-branded mining machines will drop by half this year, the company said on Monday.

Caterpillar said mining customers placed big orders for gear last year, just as mining profits fell, so now those customers are cutting back. Dealers who would normally be stocking up on Caterpillar gear to get ready for a busy summer instead cut inventory during the first quarter.

Caterpillar has already started cutting costs. On April 5 it said it would lay off more than 460 employees at a mining truck plant in Decatur, Ill. Caterpillar also announced mining-related layoffs in Milwaukee and plans to cut 1,300 of 3,400 jobs at a plant near Brussels that makes excavators, loading vehicles, and engine parts. This year’s capital spending — which covers big-ticket items like factories and computer systems — will fall below $3 billion, down from $3.4 billion last year.

Net income dropped to $882 million, or $1.31 per share. Revenue fell 17 percent to $13.21 billion, from $15.98 billion a year ago. Both missed analyst expectations. Analysts surveyed by FactSet were expecting a profit of $1.36 per share on revenue of $13.79 billion.

It also cut its 2013 guidance. Caterpillar now expects to earn $7 per share, down from $7 to $9 previously. It forecast revenue of $57 billion to $61 billion, down from $60 billion to $68 billion. Analysts were expecting a 2013 profit of $7.67 per share on revenue of $62.48 billion.

There were some bright spots. Sales in China rose compared to a year ago. And the company is “becoming more optimistic” on the U.S. housing sector.

Shares of Peoria, Ill.-based Caterpillar Inc. rose 70 cents to $81.13 in premarket trading.

From: http://feeds.foxnews.com/~r/foxnews/national/~3/XsMAqnZSj5o/

Business, Finance, Occupation & Industry

Black Box Corporation Directors Elect Two New Members to Board

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By Business Wirevia The Motley Fool

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Black Box Corporation Directors Elect Two New Members to Board

PITTSBURGH–(BUSINESS WIRE)– Black Box Corporation (NAS: BBOX) , a leading communications system integrator, announced today that its Board of Directors has elected Mr. John Heller and Mr. Joel Trammell to the Board. Both Messrs. Heller and Trammell’s terms will expire at the next annual meeting of stockholders. At that time, it is expected that they will stand for election by the stockholders.

Mr. Heller retired from Caterpillar Inc. in February 2012. He held a number of positions of increasing responsibility at Caterpillar during a 38-year career, last serving as Vice President and Chief Information Officer for more than the last 5 years. He is a graduate of Millikin University with a Bachelor of Science degree in Business Administration and holds an M.B.A. from the University of Illinois.

Mr. Trammell is a Managing Partner of Lone Rock Technology Group since 2011. Mr. Trammell was a founder and the CEO of CacheIQ, Inc. from June 2010 until it was acquired by NetApp, Inc. in November 2012. Previously, he was a founder and served as the CEO of NetQoS, Inc. from June 2000 to November 2009. Mr. Trammell is a graduate of Louisiana Tech University with a Bachelor of Science degree in Electrical Engineering.

“I am very pleased to have John and Joel join our Board of Directors,” said Mr. Thomas G. Greig, Chairman of Black Box Corporation’s Board of Directors. “Both bring deep expertise in many areas including enterprise technology, management and strategic planning. Their perspectives will help to drive shareholder value as Black Box continues to grow and adapt to our rapidly changing business environment. I join my fellow directors in welcoming them to the Board.”

About Black Box

Black Box is a leading communications system integrator dedicated to designing, sourcing, implementing and maintaining today’s complex communications solutions. Black Box services more than 175,000 clients in approximately 150 countries with approximately 200 offices throughout the world. To learn more, visit the Black Box Web site at http://www.blackbox.com.

Black Box® and the Double Diamond logo are registered trademarks of BB Technologies, Inc. Any third-party trademarks appearing in this press release are acknowledged to be the property of their respective owners.

Black Box Corporation
Gary …read more
Source: FULL ARTICLE at DailyFinance

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ORBCOMM and Kobelco Construction Machinery Deliver Global Telematics Solution

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By Business Wirevia The Motley Fool

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ORBCOMM and Kobelco Construction Machinery Deliver Global Telematics Solution


Adds new market leader in heavy equipment industry to customer portfolio

ROCHELLE PARK, N.J.–(BUSINESS WIRE)– ORBCOMM Inc. (NAS: ORBC) , a global satellite data communications company specializing in two-way Machine-to-Machine (M2M) communications and solutions, today announced that it is working with Kobelco Construction Machinery Co. Ltd. (KCM) on a global telematics application.

KCM, which is Japan‘s second largest manufacturer of hydraulic excavators, will use ORBCOMM‘s global satellite communications network to track and monitor the location, status and performance of their construction equipment. KCM‘s powerful on-board system will enable their customers to gain significant operating advantages and cost savings through enhanced visibility and better asset management of their machinery.

“KCM‘s agreement with ORBCOMM further demonstrates our market leadership as the top choice for wireless M2M network service among the largest global manufacturers in the heavy equipment industry,” said Marc Eisenberg, ORBCOMM‘s Chief Executive Officer. “With the growing importance of cost-effective, reliable connectivity in powering M2M applications, ORBCOMM will play a pivotal role in the successful implementation of KCM‘s high-performance asset monitoring solution in key international markets.”

About ORBCOMM Inc.

ORBCOMM is a leading global satellite data communications company specializing in Machine-to-Machine (M2M) communications and solutions. Its customers include Caterpillar Inc., Doosan Infracore America, Hitachi Construction Machinery, Hyundai Heavy Industries, Asset Intelligence (a division of I.D. Systems, Inc.), Komatsu Ltd., Manitowoc Crane Companies, Inc., and Volvo Construction Equipment among other industry leaders. By means of a global network of low-earth orbit (LEO) satellites and accompanying ground infrastructure, ORBCOMM‘s low-cost and reliable two-way data communication services track, monitor and control mobile and fixed assets in our core markets: commercial transportation; heavy equipment; industrial fixed assets; marine; and homeland security. ORBCOMM based products are installed on trucks, containers, marine vessels, locomotives, backhoes, pipelines, oil wells, utility meters, storage tanks and other assets. ORBCOMM is an innovator and leading provider of tracking, monitoring and control services for the refrigerated transport market. Under its ReeferTrak®, GenTrak TM, and CargoWatchTM brands, the company provides customers with the ability to proactively monitor, manage and remotely control their refrigerated transport assets. Additionally, ORBCOMM provides Automated Identification System (AIS) data services for vessel tracking and to improve maritime safety to …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Seven Stocks That Will Take the DJIA to 15,000 (IBM, CVX, MMM, MCD, UTX, CAT, XOM)

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By 24/7 Wall St.

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The Dow Jones Industrial Average hit a new high this week, and the new closing high is 14,253.77. We originally came up with a top price target for the DJIA of 14,590 for 2013 based upon our own DJIA analysis and methodology. We now expect that number to be surpassed, even if we have not officially raised the target. The reality is that by our take it will only require the top seven of the 30 DJIA stocks to perform this year for the DJIA to hit 15,000.

International Business Machines Corp. (NYSE: IBM), Chevron Corp. (NYSE: CVX), 3M Co. (NYSE: MMM), McDonald’s Corp. (NYSE: MCD), United Technologies Corp. (NYSE: UTX), Caterpillar Inc. (NYSE: CAT) and Exxon Mobil Corp. (NYSE: XOM) will likely be the seven stocks of the 30 DJIA components that lead the index to 15,000. At issue is that the DJIA is a price-weighted index that does not care about the market capitalization. These seven DJIA stocks account for 43% of the entire weighting of the 30 DJIA components.

For instance, General Electric Co. (NYSE: GE) has a $245 billion market cap, yet its $23.59 share price generates a weighing of only 1.27%. Then you have 3M Co. (NYSE: MMM) with a 5.63% weighting because its price is $104.45, and United Technologies Corp. (NYSE: UTX) has a 4.9% weighting in the DJIA because its price is $89.13. Combined, two these companies have a market cap of $159 billion. So GE is worth almost 150% of the market cap, but its weighting in the DJIA at 1.27% compares to the combined weighting of 10.73% for 3M and United Tech. Now you know how silly the DJIA can be as an index, even if investors are usually referring to the DJIA when they say “the market.”

If you took the bottom seven DJIA components, you barely get a 7% combined weighting in the DJIA. These stocks could all double in a static scenario, where the other stocks remain the same, and you would barely get close to the 15,000 mark.

A review at IndexArb.com shows just how much these weightings matter, with a cumulative weighting after each component:

1) IBM 11.13; 11.13
2) Chevron 6.35; 17.48
3) 3M 5.63; 23.11
4) McDonald’s 5.16; 28.27
5) United Technologies 4.90; 33.17
6) Caterpillar 4.86; 38.03
7) Exxon Mobil 4.83; 42.86

International Business Machines Corp. (NYSE: IBM) is at $206.53, against a 52-week range of $181.85 to $211.79. The consensus target price is $225.75, implying an expected gain of 9.3%. IBM‘s dividend yield is 1.7% but has been rising, and the company keeps buying back stock. Warren Buffett has bought a large stake that is likely to rise as well.

Chevron Corp. (NYSE: CVX) trades at $117.93, against a 52-week range of $95.73 to $118.53. Its consensus target price is $124.51, implying upside of 5.6%, and it has a 3.1% …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Caterpillar to cut 1,400 jobs at plant in Belgium

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Construction equipment maker Caterpillar says it will cut more than one in three jobs at its Belgian plant because of high labor costs and sluggish growth in its European market.

Caterpillar Inc. says Thursday it plans to cut 1,400 of the 3,400 jobs at its Gosselies plant south of Brussels alongside other measures aimed at restoring the site’s competitiveness.

It says the facility is hampered by Europe‘s low growth prospects and labor costs that are so high that “it currently costs less to import machines to Europe from some other Caterpillar locations than to produce them in Gosselies.”

The Belgian plant, one of Caterpillar’s largest globally, produces hydraulic excavators, loading vehicles, engine parts and components.

The Peoria, Illinois-based company is the world’s largest maker of construction and mining equipment.

…read more
Source: FULL ARTICLE at Fox World News

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Why Caterpillar is a Top 25 Dividend Giant

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By DividendChannel.com Caterpillar Inc. (NYSE: CAT) has been named as a Top 25 ”Dividend Giant” by ETF Channel, with a stunning $1.18B worth of stock held by ETFs, and above-average ”DividendRank” statistics including a strong 2.19% yield, according to the most recent Dividend Channel ”DividendRank” report. The report noted a strong quarterly dividend history at Caterpillar Inc., and favorable long-term multi-year growth rates in key fundamental data points.
Source: FULL ARTICLE at Forbes Markets

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Notable ETF Inflow Detected – VIG, CL, CAT, MDT

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By ETFChannel.comLooking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Dividend Appreciation ETF (AMEX: VIG) where we have detected an approximate $47.1 million dollar inflow — that’s a 0.4% increase week over week in outstanding units (from 201,267,829 to 202,069,593). Among the largest underlying components of VIG, in trading today Colgate-Palmolive Co. (NYSE: CL) is off about 0.7%, Caterpillar Inc. (NYSE: CAT) is up about 1.3%, and Medtronic, Inc. (NYSE: MDT) is lower by about 0.7%. For a complete list of holdings, visit the VIG Holdings page »
Source: Forbes Markets