Caterpillar (CAT) posted earnings on Tuesday.
Caterpillar said earnings for the three months ended in September came in at $1.22 per share, down 54.1% from the same period last year but 4 cents ahead of the Wall Street consensus forecast. The group added, however, that earnings took a 12 cents per share hit thanks to the re-marking of pension obligations.
Group revenue, Caterpillar said, fell 22.6% to $9.9 billion, just ahead of analysts' estimates of a $9.8 billion tally. The operating profit margin was 10% for the third quarter of 2020, compared with 15.8% for the third quarter of 2019.
Caterpillar said the sales decline was largely linked to lower demand for equipment and services, with construction sales down 23% to $1.233 billion and energy and transportation sales down 24% to $4.161 billion
"I'm proud of our global team's performance as we continue to safely navigate the pandemic while remaining firmly committed to serving our customers," said CEO Jim Umpleby. "Our third-quarter results largely aligned with our expectations, and we're encouraged by positive signs in certain industries and geographies. We're executing our strategy and are ready to respond quickly to changing market conditions."
Jim Cramer said rightfully or wrongfully, Caterpillar was crowned the king of the industrial recovery. Referring to the earnings call, Cramer said, "the company didn't give investors any comfort that that was the case."
Catch his full take on Caterpillar earnings in the video above.