As we have been discussing for months, a soaring US dollar and weak global demand are hammering the earnings of US multinationals. Much to the consensus ‘surprise’ of course…
Caterpillar Chairman and CEO Officer Doug Oberhelman told CNBC on Tuesday that he’s looking for a soft year in 2015. The construction and mining equipment giant—before the opening bell on Wall street—reported a lower profit that came in well below expectations, due primarily to the recent drop in the price of oil and lower prices for copper, coal and iron ore.
The strong dollar didn’t help either, Oberhelman said on “Squawk Box” moments after the earnings release. “It seems like when it rains it pours,” he said, “and this is one of those days.” Here is a direct video link.
Meanwhile December durable goods orders also ‘shocked’ this morning with a drop of 3.4% in December (consensus was expecting +.5% increase) and a revised -2.1% for November (previously reported as -.7%).