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Caterpillar Sees Lower Sales For Remainder of 2014


Shares of Caterpillar moved lower on Thursday after the farm equipment maker lowered its sales guidance for the rest of 2014. In the second quarter. Caterpillar earned $1.69 a share, better than forecasts and up from the same period last year. On the top line, revenue was $14.1 billion, short of Wall Street estimates. Caterpillar CEO Doug Oberhelman said the company is pleased with its second quarter results. He said, "three key things are contributing to the continuing strength of our financial results, the diversity of our businesses, substantial success in operational improvements through the execution of our strategy and the strength of our cashflow and balance sheet." But, the company says sales will likely be lower for the remainder of 2014. Now, they expect them to be between $54 and $56 billion - that's at the low end of what they had initially forecast. On the bottom line, caterpillar says it expects to post profits of $5.75 a share for the year, up 20 cents from its previous estimate and the result of a $2.5 billion dollar stock buy-back. TheStreet's Julie Cerullo reports from New York.