Correspondent, Chicago
James's Feed
Feb 6, 2014

Cummins posts higher profit but outlook disappoints

By James B. Kelleher

(Reuters) – Cummins Inc (CMI.N: Quote, Profile, Research, Stock Buzz) posted higher-than-expected quarterly profit as strong sales of engines and other vehicle components to truck and construction-equipment makers in North America, Europe and China, offset weakness in emerging markets, including India and Mexico.

But the company also provided a preliminary forecast for 2014 sales and profits that fell short of expectations, sending its shares lower in early trading.

Jan 31, 2014

For companies, a rocky road ahead in emerging markets

CHICAGO/LONDON (Reuters) – International companies are taking steps to mitigate the effects of the turmoil in emerging markets, including hedging foreign currency exposure more aggressively, reducing some investment plans, cutting costs, and raising prices frequently.

While executives are not hitting the panic button just yet, and many say the risks they face are hardly unique, they are still aggressively tackling costs and making sure that revenue keeps up with inflationary pressures. And many warn that if China suffers a credit crisis as some fear, then things could get a whole lot worse.

Jan 31, 2014

Paccar posts higher fourth-quarter profit, lifted by European demand

By James B. Kelleher

(Reuters) – Paccar Inc (PCAR.O: Quote, Profile, Research, Stock Buzz) reported a higher quarterly profit on Friday as the maker of commercial trucks and engines benefited from recovering demand in Europe.

The results, and the company’s forecast for modest industry sales growth in key markets in 2014, were in line with market expectations. But analysts had hoped Paccar would raise its outlook for industry sales and disappointment over its failure to do so sent its shares lower in early trading on the Nasdaq.

Jan 31, 2014

Paccar posts higher 4th-qtr profit, lifted by European demand

Jan 31 (Reuters) – Paccar Inc reported a higher
quarterly profit on Friday as the maker of commercial trucks and
engines benefited from recovering demand in Europe.

The results, and the company’s forecast for modest industry
sales growth in key markets in 2014, were in line with market
expectations. But analysts had hoped Paccar would raise its
outlook for industry sales and disappointment over its failure
to do so sent its shares lower in early trading on the Nasdaq.

Jan 30, 2014

Harley-Davidson profit rise fails to rev up investors

By James B. Kelleher

(Reuters) – Harley-Davidson Inc (HOG.N: Quote, Profile, Research, Stock Buzz) posted a higher quarterly profit on Thursday, lifted by growing global motorcycle sales, while its preliminary 2014 shipment forecast suggested its efforts to reach non-traditional riders will continue to gain traction.

The results initially sent its shares up as much as 4 percent in trading on the New York Stock Exchange, before they gave up those gains to trade down 0.6 percent at $63.65.

Jan 27, 2014

What emerging market meltdown? Caterpillar more worried about Europe

By James B. Kelleher

(Reuters) – Caterpillar Inc said on Monday it remained upbeat about the outlook for China, even as concerns about the world’s second-largest economy and other developing countries triggered another sharp selloff in global financial markets.

The comments came as Caterpillar, the world’s largest maker of earth-moving equipment, reported better-than-expected earnings, lifted in part by another strong quarter of construction equipment sales in China.

Jan 27, 2014

Caterpillar tops estimate, sees gains in 2014; stock up

Jan 27 (Reuters) – Caterpillar Inc posted a
stronger-than-expected quarterly profit on Monday as cost cuts
and an uptick in demand for its building equipment offset
continued weak sales to the mining industry.

The results, together with a better-than-estimated
preliminary profit forecast for 2014 and a new $10 billion share
repurchase plan, sent Caterpillar’s stock up as much as 7
percent in early trading on the New York Stock Exchange.

Dec 24, 2013

The trouble with forward guidance: James Saft

By James and Saft

(Reuters) – Keeping your word is hard, and people simply hate it when you don’t, something that central bankers enamored of the vogue for “forward guidance” may soon learn.

The Federal Reserve put forward guidance – essentially a pledge or promise to keep policy within certain parameters for a set period of time or given certain conditions being met – at the center of its strategy for keeping control over market interest rates while withdrawing from bond buying. In announcing a $10 billion per month taper, or reduction in bond buying last week, the Fed sweetened the medicine by hardening forward guidance to indicate that rates could remain near zero “well beyond” the time unemployment drops below 6.5 percent so long as inflation remains below a 2 percent target.

Dec 20, 2013

Analysis: In U.S., ‘animal spirits’ remain leashed as cash flows to shareholders

CHICAGO/NEW YORK (Reuters) – It’s official: 2013 will be the second-biggest year in history for U.S. corporate share repurchases, though the “shareholder friendly” moves are beginning to give some economists and investors the jitters.

Just this week, 3M (MMM.N: Quote, Profile, Research, Stock Buzz) and Boeing (BA.N: Quote, Profile, Research, Stock Buzz) alone authorized as much as $32 billion in repurchases, jumping on a bandwagon that has already attracted nearly 500 U.S. companies, including industry leaders like Microsoft Corp. (MSFT.O: Quote, Profile, Research, Stock Buzz), General Electric Co. (GE.N: Quote, Profile, Research, Stock Buzz) and Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research, Stock Buzz).

Dec 19, 2013

Winnebago profit up 51 pct; revenues miss estimate

Dec 19 (Reuters) – Winnebago Industries Inc, the No.
1 U.S. motor home maker, reported a 51 percent jump in quarterly
profit on Thursday as strong demand for its new line of
lower-priced recreational vehicles prompted dealers to increase
orders.

But the company’s shares, which have more than doubled in
value over the past year, tumbled as much as 13 percent, pulled
down by softer-than-expected sales.