Caterpillar Posts a Q1 Loss, the 1st in 16 Years

Caterpillar Inc. (NYSE:CAT) reported a Q1 2009 loss of 19 Cents, but that number could have been 39 Cents had it not been for some advantageous accounting.

The company itself set the table for the dramatic downturn. When it reported fourth-quarter results at the start of this year, it reduced its forecast for 2009 EPS to $2.50 from $4.32. Amid the on-going global recession, full-year profits and sales will miss its forecasts, so what had been about $2.50 a share has gotten cut in half, down to $1.25. The sales decline remained the biggest overhang for the company.

Shares, which had plunged more than 50% from the start of the year, sinking to $22 last month before bouncing back to $30 ahead of the results, have held stead in response to the earnings.

SOURCE: http://blogs.barrons.com/stockstowatchtoday/2009/04/21/caterpillar-records-loss-but-not-a-surprise/