Updated from 7:52 a.m.
fell 7% early Friday after missing third-quarter estimates and guiding below the Wall Street consensus for the year.
The industrial giant made $254 million, or 79 cents a share, from continuing operations for the quarter ended Sept. 30, compared with $256 million, or 75 cents a share, a year ago. Excluding certain items, latest-quarter earnings were 85 cents a share, a penny shy of the Thomson Financial analyst consensus estimate.
Revenue rose to $2.77 billion from $2.62 billion a year earlier, missing the $2.85 billion consensus estimate.
"Despite double-digit revenue growth and solid earnings in four of our business segments, our overall third quarter results were disappointing," said CEO Herbert L. Henkel. "While we continue to make progress against many of our long-term strategic priorities, our overall performance was unsatisfactory by our standards. We will take immediate corrective actions in the fourth quarter to deliver the type of results that we expect on a consistent basis. We will drive a sharper focus on cost control, including restructuring actions where warranted. We expect to realize the full benefit of these corrective measures in 2007."
The latest quarter included a $27 million charge to add to reserves on a tax dispute with the IRS.
Bobcat revenues declined by more than 20% compared to last year, due to an unexpectedly severe deterioration in North American markets for compact equipment and a related decline in shipments to distributors to reduce their equipment field inventories. Third quarter 2005 results benefited from equipment and attachment sales related to Gulf Coast hurricane clean-up activities. Bobcat margins declined from lower revenues and unfavorable product and geographic mix.
The company said it expects to make 74 cents to 79 cents a share from continuing operations for the fourth quarter, on a 3% revenue gain. The company expects to make $3.25 to $3.30 for the year.
Analysts were looking for a 92-cent profit for the quarter and $3.50 for the year.
Shares fell $2.79 to $36.11.