Caterpillar (NYSE:CAT) announced Tuesday it will be building a new manufacturing facility in Brazil, as growing demand for mining and construction equipment in Latin America continues to surge.
Although this is a long-term strategy for Caterpillar, Latin America has experienced a fairly strong economic recovery over the last 12 months, and that should continue on for some time, especially in the mining sector, which promises to be robust around the world over the next decade or so.
Even so, sales of equipment to Latin America in May had dropped by 2 percent, highlighting resistance to spending on new equipment by businesses.
Global sales on the other hand made a nice upward move for Caterpillar, increasing by 11 percent in May, although we'll have to wait and see if that's sustainable, as economic conditions are perceived to be worsening rather than getting better.
Products assembled at the new plant will be small wheel loaders and backhoe loaders.
Construction on the new site, which hasn't been chosen yet, is scheduled for some time in the early part of 2011.
Showing posts with label Mining Equipment Manufacturing. Show all posts
Showing posts with label Mining Equipment Manufacturing. Show all posts
Wednesday, June 30, 2010
Monday, May 17, 2010
Caterpillar NYSE: CAT), Alcoa (NYSE: AA) and Manufacturing News in New York
Activity for New York manufacturing plunged in May, signifying there could be more challenges ahead for companies like Caterpillar NYSE: CAT) and Alcoa (NYSE: AA).
The general business conditions index from the New York Federal Reserve dropped from 31.86 in April to 19.11 in May. This is huge miss from analysts' estimates, who were look for 30.00 for the month.
New orders were also done by a lot, dropping from 29.49 in April to 14.30 in May.
No matter how this is spun, this is a disaster, and probably comes from the uncertainty related to the EU debt crisis and the inflation challenges in China, which threatens the demand for raw materials and equipment.
The general business conditions index from the New York Federal Reserve dropped from 31.86 in April to 19.11 in May. This is huge miss from analysts' estimates, who were look for 30.00 for the month.
New orders were also done by a lot, dropping from 29.49 in April to 14.30 in May.
No matter how this is spun, this is a disaster, and probably comes from the uncertainty related to the EU debt crisis and the inflation challenges in China, which threatens the demand for raw materials and equipment.
Wednesday, March 3, 2010
Joy Global (NASDAQ:JOYG) Raises Guidance
Joy Global Raises Guidance
Joy Global (NASDAQ:JOYG) received a nice boost today after it raised its guidance, driving its shares higher, even though profits were lower than expected.
In their first fiscal quarter, the mining equipment manufacturer had its net profit fall by 11 percent to $76.2 million, or 73 cents a share. Last year profits came in a $85.7 million or 73 cents share.
The good news there was Joy Global beat the street consensus of 64 cents a share, giving it good news there as well, even though profits were down.
Where the guidance of Joy Global was increased was for its annual target, which originally stood at $2.85 a share, but now has increased by 20 cents a share to $3.05a share for the year.
The increased guidance was largely based on a huge increase of equipment orders of 22 percent for the first quarter, which will equal about $808 million in contrast to the same quarter last year of orders worth $684 million.
Joy Global Raises Guidance
Joy Global (NASDAQ:JOYG) received a nice boost today after it raised its guidance, driving its shares higher, even though profits were lower than expected.
In their first fiscal quarter, the mining equipment manufacturer had its net profit fall by 11 percent to $76.2 million, or 73 cents a share. Last year profits came in a $85.7 million or 73 cents share.
The good news there was Joy Global beat the street consensus of 64 cents a share, giving it good news there as well, even though profits were down.
Where the guidance of Joy Global was increased was for its annual target, which originally stood at $2.85 a share, but now has increased by 20 cents a share to $3.05a share for the year.
The increased guidance was largely based on a huge increase of equipment orders of 22 percent for the first quarter, which will equal about $808 million in contrast to the same quarter last year of orders worth $684 million.
Joy Global Raises Guidance
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?
Friday, December 18, 2009
Joy Global (Nasdaq:JOYG) Fourth Quarter Results
Joy Global (Nasdaq: JOYG) is a manufacturer of mining equipment, and their fourth quarter results show the company has a solid ending to the year, and a decent 2009 in general.
Earnings per share for the year gained a nice 28 percent for 2009, and that was net sales increasing by only 5 percent.
What that tells us is Joy Global had some strong backlog o forders which helped them during these more difficult economic times, where overall mining equipment orders have been drying up.
Another positive for the company is they greatly increase their supply chain management, and were able to streamline costs nicely, which could set them up for nice profits going forward once a real recovery begins to happen.
Operating margins for 2009 endd at 20 percent, a great performance when bookings were down for mining equipment. Again, that was a testament to great cost-cutting measures.
Even with all the backlog and great performance, things remain tenuous for the time, as orders for new mining equipment have plunged by 74 percent from last year at the same time, making it tough going forward into 2010 for Joy Global.
If it wasn't for aftermarket products things would have been far more dismal, as original equipment bookings were almost non-existent for the company over the last year.
Earnings per share for the year gained a nice 28 percent for 2009, and that was net sales increasing by only 5 percent.
What that tells us is Joy Global had some strong backlog o forders which helped them during these more difficult economic times, where overall mining equipment orders have been drying up.
Another positive for the company is they greatly increase their supply chain management, and were able to streamline costs nicely, which could set them up for nice profits going forward once a real recovery begins to happen.
Operating margins for 2009 endd at 20 percent, a great performance when bookings were down for mining equipment. Again, that was a testament to great cost-cutting measures.
Even with all the backlog and great performance, things remain tenuous for the time, as orders for new mining equipment have plunged by 74 percent from last year at the same time, making it tough going forward into 2010 for Joy Global.
If it wasn't for aftermarket products things would have been far more dismal, as original equipment bookings were almost non-existent for the company over the last year.
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