Caterpillar Inc. (CAT) saw its loss widen to $1,171 million, or $2 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $94 million, or $0.16 a share.
Revenue during the quarter dropped 13.20 percent to $9,574 million from $11,030 million in the previous year period. Gross margin for the quarter contracted 428 basis points over the previous year period to 19.68 percent. Operating margin for the quarter stood at negative 13.18 percent as compared to a negative 1.59 percent for the previous year period.
Operating loss for the quarter was $1,262 million, compared with an operating loss of $175 million in the previous year period.
"Our results for the fourth quarter, while slightly better than expected, continued to reflect pressure in many of our end markets from weak economic conditions around much of the world. Our team did a great job in the quarter, as they have all year, aligning our cost structure with current demand while preserving capacity for the future. I’m confident we are focusing on the right areas: controlling costs, maintaining a strong balance sheet and investing in the key areas important to our future," said Caterpillar chief executive officer Jim Umpleby.
For fiscal year 2017, Caterpillar Inc. projects revenue to be in the range of $36,000 million to $39,000 million. It projects diluted earnings per share to be $2.30. It expects diluted earnings per share to be $2.90 on adjusted basis for the same period.
Operating cash flow declines
Caterpillar Inc. has generated cash of $5,608 million from operating activities during the year, down 15.99 percent or $1,067 million, when compared with the last year.
The company has spent $1,760 million cash to meet investing activities during the year as against cash outgo of $3,517 million in the last year. It has incurred net capital expenditure of $2,029 million on net basis during the year, down 18.87 percent or $472 million from year ago.
The company has spent $3,112 million cash to carry out financing activities during the year as against cash outgo of $3,870 million in the last year period.
Debt comes down marginally
Caterpillar Inc. has recorded a decline in total debt over the last one year. It stood at $36,783 million as on Dec. 31, 2016, down 3.24 percent or $1,230 million from $38,013 million on Dec. 31, 2015. Total debt was 49.24 percent of total assets as on Dec. 31, 2016, compared with 48.43 percent on Dec. 31, 2015. Debt to equity ratio was at 2.78 as on Dec. 31, 2016, up from 2.55 as on Dec. 31, 2015.
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