Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Shares in Caterpillar Inc (NYSE:CAT), the world’s largest earth-moving equipment maker, fell 2.2% after hours as the company cut its 2015 profit outlook. The company warned weaker commodity prices would result in a bigger-than-expected decline in demand, worsened by mining companies scaling back expansions and shelving major projects.
The manufacturer of construction and mining equipment said it now expects to earn $12 to $18 per share in 2015 on $80 billion to $100 billion in revenue. The company had previously forecast $15 to $20 per share of earnings, with CEO Doug Oberhelman saying at the time he was confident the global economy was improving.
But in a presentation at the MINExpo industry conference in Las Vegas, Oberhelman told analysts his company expected “fairly anemic and modest growth through 2015.”
“There are a number of geopolitical and economic factors driving uncertainty in the world today, but our base case scenario calls for modest global economic growth over the next few years,” Oberhelman in a statement.
Art Hogan, the managing director of Lazard Capital Markets in New York told Reuters Caterpillar’s message is just another proof of how global-reaching firms are speaking negatively to the pace of the economy. “And with slowdowns in Europe and Asia this is something we should get used to,” he added.
Last year Caterpillar banked on rising demand from the mining industry for 2012 and made an $8.8 billion acquisition of equipment manufacturer Bucyrus.
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Comments
tcinc
Caterpillar, like any company that stays at home and licenses its market and future to someone else is bound to have its ups and downs in the market place. Caterpillar does just that, almost like an “Ugly American” approach. How often does Caterpillar travel to any country in Africa? When do they evaluate the political scene and change in any area? Do they even evaluate IMF or UNIDO projects around the globe and follow them or do they rely on a licensed local with his own agenda to set the marketing stage?
I’ve been there, done that for almost 50 years. If you’re not there, you are going to miss the boat, and the sale, and the after market, and the future. What is wrong with the last of the American and top worldwide and innovative companies? Is beating the bush just too low on the score card at the club? The above comments sound like excuses. It says nothing about stepping up efforts in marketing to make up for the slow down of the economy. What would those words have done for the value of the stock?