Dive Brief:
- Caterpillar Inc., the world's largest construction equipment manufacturer, released Q1 results of $1.86 per share, surpassing the $1.35 per share prediction by analysts in a Reuters poll.
- The company's revenue reached $12.7 billion for the first quarter, also rising above the the estimated $12.38 billion.
- Chairman and CEO Doug Oberhelman told CNBC the increase was due largely to North American sales. Overseas sales floundered, especially in Brazil, Europe and China, he said.
Dive Insight:
Oberhelman said he was happy with the Q1 results, but warned, "We will not repeat this quarter the rest of the year" due to "headwinds and uncertainty in 2015."
Caterpillar, based in Peoria, IL, has set the ambitious goal of $50 billion in sales for 2015. Despite the company's impressive Q1 results, it hasn't changed its yearly revenue projection.
Business Insider refers to Caterpillar as a "bellwether for global economic growth," and expressed concern over the company's report of slowing sales in China.
Caterpillar's earnings report stated: "The Chinese government's push for structural reforms is slowing growth, and the ongoing uncertainty around the direction and timing of US fiscal and monetary policy actions may temper business confidence."
That small section of the report could speak volumes on China's overall economy, which Business Insider reports has slowed to its slowest rate in 25 years. Caterpillar's results will likely focus analysts' attention on China sales when looking at the Q1 results soon to be released from other global businesses.
Last month, Caterpillar announced plans to move two production lines, and 230 jobs, from Illinois to Mexico in an effort to cut costs.
