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 Bucyrus. Show all posts
Showing posts with label Bucyrus. 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.
Tuesday, October 5, 2010
Caterpillar (NYSE:CAT), Deere (NYSE:DE), Cummins (NYSE:CMI), AGCO (Nasdaq:AGCO) and Eaton (NYSE:ETN) among Favorites of Barclays (NYSE:BCS) for Brazil Exposure
In their recent research trip to Brazil concerning building out their infrastructure, Barclays (NYSE:BCS) came away with several favorites in the machinery sector serving the build-out, including Caterpillar (NYSE:CAT), Cummins (NYSE:CMI), Deere (NYSE:DE), AGCO (Nasdaq:AGCO) and Eaton (NYSE:ETN)
The two favorites of Barclays in the entire group are Caterpillar and CMI.
Overall, Barclays said after talking to these and many other players in Brazilian infrastructure projects, the feeling is things are picking up and those companies with large exposure should reap strong rewards going forward, as expenditures are increasing.
Brazil has been overshadowed by China and to a lesser extent India recently, and it may be their time to shine as significant capital is generated from a variety of energy sectors and projects.
Other companies they met with in the equipment industry were Terex (NYSE:TEX) and Bucyrus International (Nasdaq:BUCY).
The two favorites of Barclays in the entire group are Caterpillar and CMI.
Overall, Barclays said after talking to these and many other players in Brazilian infrastructure projects, the feeling is things are picking up and those companies with large exposure should reap strong rewards going forward, as expenditures are increasing.
Brazil has been overshadowed by China and to a lesser extent India recently, and it may be their time to shine as significant capital is generated from a variety of energy sectors and projects.
Other companies they met with in the equipment industry were Terex (NYSE:TEX) and Bucyrus International (Nasdaq:BUCY).
Bucyrus (Nasdaq:BUCY) Retains "Overweight" from Barclays (NYSE:BCS)
Bucyrus International (Nasdaq:BUCY) had its "Overweight" rating from Barclays (NYSE:BCS) maintained on them, citing higher revenue and margins from business with Terex Mining (NYSE:TEX)
"We raise our BUCY price target to $80 given our increased revenue and margin assumptions for Terex Mining (NYSE:TEX). Following recent meetings with BUCY and Vale management in South America, we see revenue/operating margin upside from TEX vs. our previous assumptions. We now forecast 2011 pro-forma revenue growth of - 25 percent for TEX vs. our prior - 12 percent and operating margin of 14.7 percent vs. our prior 13.6 percent, which added $0.30 to our prior 2011 EPS estimate," said Barclays.
Bucyrus closed at $68.71, down $1.18, or 1.69 percent. Barclays has a price target $80 on Bucyrus, raising it from $75.
"We raise our BUCY price target to $80 given our increased revenue and margin assumptions for Terex Mining (NYSE:TEX). Following recent meetings with BUCY and Vale management in South America, we see revenue/operating margin upside from TEX vs. our previous assumptions. We now forecast 2011 pro-forma revenue growth of - 25 percent for TEX vs. our prior - 12 percent and operating margin of 14.7 percent vs. our prior 13.6 percent, which added $0.30 to our prior 2011 EPS estimate," said Barclays.
Bucyrus closed at $68.71, down $1.18, or 1.69 percent. Barclays has a price target $80 on Bucyrus, raising it from $75.
Wednesday, September 29, 2010
Bucyrus (Nasdaq:BUCY), Joy Global (Nasdaq:JOYG) Price Targets Raised by Jefferies
Bucyrus International Inc. (Nasdaq:BUCY) and Joy Global, Inc. (Nasdaq:JOYG) had the price target on them raised by Jefferies visiting and investigating their facilities in Wisconsin, and meeting with management.
The price target on Bucyrus, which Jefferies has at a "Buy," was raised from $70 to $80. Bucyrus closed at $71.37, down $0.23, or 0.32 percent.
Joy Global, Inc. had their price target raised from $65 to $74, and have a "Hold" on them by Jefferies. Joy closed Tuesday at $70.71, down $0.10, or 0.14 percent.
Other Wisconsin companies didn't fare quite so well with Jefferies, and they maintained their price target on Regal Beloit Corporation (NYSE:RBC) at $64, and lowered Oshkosh Corporation's (NYSE:OSK) price target from $36 to $30. Both the companies have a "Hold" on them.
The price target on Bucyrus, which Jefferies has at a "Buy," was raised from $70 to $80. Bucyrus closed at $71.37, down $0.23, or 0.32 percent.
Joy Global, Inc. had their price target raised from $65 to $74, and have a "Hold" on them by Jefferies. Joy closed Tuesday at $70.71, down $0.10, or 0.14 percent.
Other Wisconsin companies didn't fare quite so well with Jefferies, and they maintained their price target on Regal Beloit Corporation (NYSE:RBC) at $64, and lowered Oshkosh Corporation's (NYSE:OSK) price target from $36 to $30. Both the companies have a "Hold" on them.
Tuesday, September 14, 2010
Teck Resources (NYSE:TCK) Freeport (NYSE:FCX), Bucyrus (Nasdaq:BUCY) Up on China Production
Teck Resources (NYSE:TCK), Bucyrus International, Inc. (Nasdaq:BUCY) and Freeport-McMoRan Copper & Gold,(NYSE:FCX) all made nice upward moves Monday as China's production increased more than expected,
Industrial production grew 13.9 percent in August, beating average estimates of 13 percent from Bloomberg analysts.
China has been interesting because they seem to be sending different signals as time goes on, with a signal they're going to slow hammering the markets, and data showing growth, of course, doing the opposite.
There is no doubt China has been cutting back in urban infrastructure and property, but they've said they're looking at now expanding projects to rural areas, which they may have possibly already started to do.
Every time the underlying weakness of the global economy is exposed, data will be released which seems to contradict, or at minimum, confuse the situation.
It's dubious as to the growth in industrial production in China, but even if it's true, it does nothing to change the underlying weak fundamentals that haven't changed in any way.
Every time an alleged positive report or number comes out, the mainstream media pounces on it in order to give the appearance of a recovering economy in hopes of boosting the chances of the Democrats in the November elections in the U.S.
So we'll see this cat and mouse game go on until the elections, and whatever the outcome, the truth about the real weakness of the economy will continue to reveal itself.
For diverse mining companies like Teck, Freeport and Bucyrus, they'll continue to run the financial and economic data roller coaster until then.
Industrial production grew 13.9 percent in August, beating average estimates of 13 percent from Bloomberg analysts.
China has been interesting because they seem to be sending different signals as time goes on, with a signal they're going to slow hammering the markets, and data showing growth, of course, doing the opposite.
There is no doubt China has been cutting back in urban infrastructure and property, but they've said they're looking at now expanding projects to rural areas, which they may have possibly already started to do.
Every time the underlying weakness of the global economy is exposed, data will be released which seems to contradict, or at minimum, confuse the situation.
It's dubious as to the growth in industrial production in China, but even if it's true, it does nothing to change the underlying weak fundamentals that haven't changed in any way.
Every time an alleged positive report or number comes out, the mainstream media pounces on it in order to give the appearance of a recovering economy in hopes of boosting the chances of the Democrats in the November elections in the U.S.
So we'll see this cat and mouse game go on until the elections, and whatever the outcome, the truth about the real weakness of the economy will continue to reveal itself.
For diverse mining companies like Teck, Freeport and Bucyrus, they'll continue to run the financial and economic data roller coaster until then.
Thursday, September 2, 2010
BHP (NYSE:BHP), Freeport (NYSE:FCX) May be Abandoning Cyclical Practices
The mining sector in general, including gold miners, seems to be moving away from cyclical business practices into more of a level approach, and majors like BHP Billiton (NYSE:BHP) and Freeport-McMoRan (NYSE:FCX) could draw a lot more investors if they continue on in that direction.
Mining and construction equipment makers like Joy Global (Nasdaq:JOYG), Bucyrus (Nasdaq:BUCY) and Caterpillar (NYSE:CAT) may also be moving more in that direction in response to the miners.
With commodities among the expected top market performers over the next decade, a number of mining companies have been also moving more toward operating as businesses that are easier to understand, and offering perks like increased dividends to their shareholders.
For miners and equipment providers, this deals with questions like managing orders in a way that could say no to some in order to extend the period of time the orders are received. That would lower the cyclical effects which have been part of the industry for so long, and provide shareholders with a more level and gradually growing share price, rather than the usual swings.
Commodity prices are of course a major factor in all this, and affect all businesses connected to the market. Extending orders over a period of time would also help in that regard, as it could offer an average price over a longer period of time that would also be level.
If all businesses involved with mining and mining equipment move in this direction, it would result in a much more stable and predictable environment, which would be attractive to investors and more easy to manage for the companies.
Mining and construction equipment makers like Joy Global (Nasdaq:JOYG), Bucyrus (Nasdaq:BUCY) and Caterpillar (NYSE:CAT) may also be moving more in that direction in response to the miners.
With commodities among the expected top market performers over the next decade, a number of mining companies have been also moving more toward operating as businesses that are easier to understand, and offering perks like increased dividends to their shareholders.
For miners and equipment providers, this deals with questions like managing orders in a way that could say no to some in order to extend the period of time the orders are received. That would lower the cyclical effects which have been part of the industry for so long, and provide shareholders with a more level and gradually growing share price, rather than the usual swings.
Commodity prices are of course a major factor in all this, and affect all businesses connected to the market. Extending orders over a period of time would also help in that regard, as it could offer an average price over a longer period of time that would also be level.
If all businesses involved with mining and mining equipment move in this direction, it would result in a much more stable and predictable environment, which would be attractive to investors and more easy to manage for the companies.
Wednesday, March 3, 2010
JPMorgan (NYSE:JPM): Terex (NYSE:TEX) for Sale?
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Subscribe to:
Comments (Atom)