Caterpillar (NYSE:CAT) and Bucyrus International, Inc. (Nasdaq:BUCY) both performed strongly Thursday as the fallout from the implementation of the quantitative easing strategy of the Federal Reserve is digested by the market.
With commodities set to soar even more because of the inflation and weak U.S. dollar induced by the Fed's actions, both equipment companies should be among the stronger beneficiaries of the effort as higher prices should mean more expansion and increased purchases of equipment.
Caterpillar closed the trading day at $83.18, gaining $3.30, or 4.13 percent. Bucyrus performed even better, rising to $72.48, posting a gain of $4.82 on the day, or 7.12 percent.
Showing posts with label BUCY. Show all posts
Showing posts with label BUCY. Show all posts
Friday, November 5, 2010
Friday, October 22, 2010
Bucyrus (Nasdaq:BUCY) Plunges After Missing Big Time
Bucyrus (Nasdaq:BUCY) missed estimates by a huge margin in its last quarter, as a major slowdown in underground mining equipment hampered the company.
Revenue for the quarter increased to $937.16 million, a major improvement over the $675.8 million generated last year in the same quarter, but far below the $1.03 billion analysts were looking for.
Earnings per share were down big also, coming in at $0.94 on earnings of $77.6 million, far off the $1.10 per share the Street projected. Last year the company did better in the same quarter with earnings of $92.1 million, or $1.21 a share.
Underground mining sales were $209.7 million, falling 3 percent on the quarter.
Some of the results were also from the acquisition of the mining equipment business of Terex (NYSE:TEX), although it didn't account for all the poor numbers.
After hours the stock was at $70.00, falling $3.51, or 4.77 percent at 7:58 PM EDT.
Revenue for the quarter increased to $937.16 million, a major improvement over the $675.8 million generated last year in the same quarter, but far below the $1.03 billion analysts were looking for.
Earnings per share were down big also, coming in at $0.94 on earnings of $77.6 million, far off the $1.10 per share the Street projected. Last year the company did better in the same quarter with earnings of $92.1 million, or $1.21 a share.
Underground mining sales were $209.7 million, falling 3 percent on the quarter.
Some of the results were also from the acquisition of the mining equipment business of Terex (NYSE:TEX), although it didn't account for all the poor numbers.
After hours the stock was at $70.00, falling $3.51, or 4.77 percent at 7:58 PM EDT.
Friday, October 8, 2010
Caterpillar (NYSE:CAT) to Battle Joy (Nasdaq:JOYG) and Bucyrus (Nasdaq:BUCY) in Mining Shovels Segment
After being out of the mining shovel business for several years, Caterpillar Inc (NYSE:CAT) announced it's going to enter the segment again, competing directly with market leaders Joy Global Inc (Nasdaq:JOYG) and Bucyrus International (NYSE:BUCY).
There is no doubt this category will be strong for years, as inflationary monetary policies will drive up the cost of raw materials, and emerging markets hungry for them will be pay the price to land them.
That means mining equipment like mining shovels will be hot for some time to come, as the bull commodity market continues on its long journey.
Printing money around the world has resulted in a number of currencies being debased, especially against gold, which also works strong with other commodities as well.
That means raw materials in general will continue to go up in price, generating spending from miner companies on the equipment to make them more efficient.
Confirming this is data from Bernstein Research, which says capital expenditure by mining companies will increase to record highs in 2011, growing to an estimated $113 billion. That would break the prior record of $110 billion.
The positive factor for Caterpillar and others in the industry, is this should continue to be a healthy and vibrant industry even if Western countries continue to falter, as the major growth is in emerging markets, which are going to, for the most part, continue to grow, even if the pace slows down some.
Demand for raw materials isn't near to playing out, and there will be years of robust growth and demand before it starts to level off.
Mining equipment will be among those ancillary industry profiting from that growth.
Goldman Sachs (NYSE:GS) said they see the overall expansion plans of Caterpillar to boost the sales for the company by 15 percent in 2011 and 10 percent in 2012.
There is no doubt this category will be strong for years, as inflationary monetary policies will drive up the cost of raw materials, and emerging markets hungry for them will be pay the price to land them.
That means mining equipment like mining shovels will be hot for some time to come, as the bull commodity market continues on its long journey.
Printing money around the world has resulted in a number of currencies being debased, especially against gold, which also works strong with other commodities as well.
That means raw materials in general will continue to go up in price, generating spending from miner companies on the equipment to make them more efficient.
Confirming this is data from Bernstein Research, which says capital expenditure by mining companies will increase to record highs in 2011, growing to an estimated $113 billion. That would break the prior record of $110 billion.
The positive factor for Caterpillar and others in the industry, is this should continue to be a healthy and vibrant industry even if Western countries continue to falter, as the major growth is in emerging markets, which are going to, for the most part, continue to grow, even if the pace slows down some.
Demand for raw materials isn't near to playing out, and there will be years of robust growth and demand before it starts to level off.
Mining equipment will be among those ancillary industry profiting from that growth.
Goldman Sachs (NYSE:GS) said they see the overall expansion plans of Caterpillar to boost the sales for the company by 15 percent in 2011 and 10 percent in 2012.
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