The Zacks Analyst Blog Highlights: Caterpillar, Ford Motor, ArcelorMittal, Vale and BHP Billiton
For Immediate Release
Chicago, IL – April 11, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Caterpillar Inc. (CAT), Ford Motor Co. (F), ArcelorMittal (MT), Vale S.A. (VALE) and BHP Billiton Limited (BHP).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
Layoffs Continue at Caterpillar
Owing to reduced global demand for mining equipment and to bring production in line with demand, Caterpillar Inc. (CAT) announced plans to lay off more than 400 employees or about 11% of its work force at its Decatur, IL factory.
The Decatur plant manufactures mining equipment. Amid the growing concerns of the sluggish pace of global economic recovery, Caterpillar temporarily retrenched employees in October and shut down parts of its Decatur facility for a week in November and entire month of December due to the fall in demand. However, this time the layoffs are permanent.
This news comes on the back of another job cut by Caterpillar at its South Milwaukee plant. Earlier, in March, the company announced job cuts at its Belgium plant due to high costs and weak European economy, similar to the strategy adopted by Ford Motor Co. (F) and ArcelorMittal (MT ) in the region.
Caterpillar previously added production capacity for many of its products. However, with the growing concerns and uncertainty about the pace of economic growth, short-term economic risks in the U.S, the Eurozone debt crisis, and the slowdown in China’s growth, Caterpillar has now opted to be cautious toward acquisitions and expansion investments. Mining companies such as Vale S.A. (VALE) and BHP Billiton Limited (BHP) also have been revisiting and trimming their capital expenditures plans following the slowdown in economic expansion in China, the world’s largest user of coal and metals. Prices for coal and iron ore have dropped due to slowing growth in China and European debt problems.
Caterpillar’s results have borne the brunt of continued economic turmoil in Europe and its domino effect on the rest of the world. Furthermore, reduced sales, lower production and a decline in inventory primarily resulted in lower fourth quarter 2012 earnings for Caterpillar. Caterpillar remains challenged with slowing demand and inventory correction as a result of higher production than demand.
The downslide in sales continued in 2013 as well with Caterpillar’s worldwide sales declining 13% for the three months ending Feb 2013, the third consecutive month of declining sales. The growth rate has, in fact, worsened from the 4% and 1% dip reported in Jan 2013 and Dec 2012, respectively.
The situation is not expected to improve in the first quarter of 2013 as Caterpillar expects sales to be significantly lower on an annual basis as dealers are anticipated to continue to lower their new machine inventories. The company foresees earnings to be affected by lower-than-expected sales and negative cost impact of continuing low production levels and declining inventory. For fiscal 2013, sales are expected to be in the range of $60 to $68 billion and earnings between $7.00 and $9.00.
Even though Caterpillar will benefit from the recovery in the U.S. construction sector, the recent slowdown in sales, declining backlog, negative impact of the European debt crisis and a slowing Chinese economy remain concerns.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Read the analyst report on CAT
Read the analyst report on VALE
Read the analyst report on BHP
More From Zacks.com
