CAT CEO Owens: We Need Free Trade
Caterpillar CEO Jim Owens was just on our air with Erin Burnett, and made very important comments about agricultural subsidies and the need to maintain global free trade.
Cat is at an 8 month high on its strong earnings. I'll again note the tremendous global growth they (and Honeywell ) are saying, which is soothing concerns about a global economic slowdown, at least in the industrial area.
Here's what happened in the last quarter:
North America up 3 percent
Europe/Australia/Middle East up 27 percent
Asia/Pacific up 35 percent
Latin America up 18 percent
What about Caterpillar's future? They have adjusted their regional revenue forecasts DOWN for North America but UP for everywhere else.
North America: lower
Rest of world: higher
There are still plenty of worries. The weak dollar has been a big help to them with all the overseas growth, but what happens if the dollar strengthens. Perhaps more importantly, how do you meet your earnings targets when costs are inflating, and due to the weaker U.S. and European economy you are likely to experience softer pricing?
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