29
Apr

Caterpillar profit may triple, but forecast is key

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Reuters // <![CDATA[//

Fri Apr 29, 2011 12:02am EDT

http://www.reuters.com/article/2011/04/29/caterpillar-idUSN2825928220110429

* Analysts see Q1 EPS $1.31

* Revenue forecast up 42 pct

* Shares have risen 55 percent over past year

BOSTON, April 29 (Reuters) – Caterpillar Inc is expected to report a quarterly profit on Friday that more than tripled, helped by an increase in revenue as its customers spent more money after saving it up during the recession.

But after strong earnings reports from industrials ranging from 3M Co to Komatsu Ltd , investors in the world’s top heavy equipment maker may want more. They are likely to focus on what Chief Executive Doug Oberhelman expects for the rest of the year.

“A lot of good news has been priced into the stock,” said Adam Fleck, equity analyst at Morningstar in Chicago, who has a two-star rating on Caterpillar shares, the second lowest on Morningstar’s five-star scale. “The company is priced for some pretty great results this year.”

Investors have bid Caterpillar shares up about 56 percent over the past year, about five times the 11 percent gain of the Standard & Poor’s 500 index .

Caterpillar’s gain is on par with that of Rockwell Automation Inc , which saw its shares tumble 8.5 percent on Wednesday after it beat Wall Street’s forecasts for the quarter, but failed to raise the top end of its profit forecast for the rest of the year.

At Peoria, Illinois-based Caterpillar, analysts expect first-quarter profit to more than triple to $1.31 per share, excluding one-time items, according to Thomson Reuters I/B/E/S.

They expect revenue to rise 42 percent to $11.69 billion in revenue.

The company has forecast full-year profit to rise 45 percent to “near $6” per share. Analysts expect $6.25. Their average forecast has risen 13 cents since Oberhelman reiterated Caterpillar’s full-year forecast a little more than a month ago.

Earlier in the week, Komatsu reported operating profit that doubled in the quarter, citing demand in China and a recovery in the United States and Europe. The Japanese company said it was unclear what effect Japan’s March 11 earthquake, tsunami and nuclear crisis would have on its results this year.

The disaster in Japan could hurt growth now, but boost Caterpillar’s prospects in the coming years as a need to rebuild spurs demand for bulldozers and excavators, Morningstar’s Fleck said.

Caterpillar is expected to close its $7.6 billion acquisition of mining equipment Bucyrus International later this year. Caterpillar officials in March said they may complete the purchase without issuing new shares because of the company’s expected strong profit growth this year. (Reporting by Scott Malone. Editing by Robert MacMillan)

26
Apr

Meet Myah, current student, IE Brown Executive MBA

Written on April 26, 2011 by Vani Nadarajah in News

Hear about what Myah feels is unique about this program and how it feels to be part of a ground-breaking Executive MBA class with 40% women students. 

25
Apr

Bringing a liberal arts perspective into management education

Written on April 25, 2011 by Vani Nadarajah in News

Read a piece from one of the program’s Academic Directors, David Bach, on the value of bringing a liberal arts perspective into management education, published today in the Financial Times.

To quote from the article:
“Rather than teaching these executives new tools or the latest analytic insights, we endeavour to open the mind, look for different perspectives, make connections, and most importantly, make sense of the world, of organisations and of interpersonal dynamics….”
11
Apr

Building a Learning Community

Written on April 11, 2011 by Vani Nadarajah in News, Video

How do you start a 15-month Executive MBA program? We teamed up with international consultants Action Learning Associates (ALA) of Colorado, to ease the new participants into their program. ALA worked with our program directors to design an exclusive, energetic curriculum designed to unleash the students’ leadership potential and build a strong learning community within the class.

8
Apr

Meet Deepa, Current Student, IE Brown Executive MBA

Written on April 8, 2011 by Vani Nadarajah in News, Video

Meet Deepa, hear why she chose this program, her first impressions on her classmates, faculty and her expectations about the program.

29
Mar

Video footage coming soon…

Written on March 29, 2011 by Vani Nadarajah in News

Coming soon – stay tuned to this blog for videos, that we will be posting shortly from the first two weeks of the IE Brown executive MBA in Providence, Rhode Island.

25
Mar

Welcome to the IE Brown Student Blog!

Written on March 25, 2011 by Vani Nadarajah in News, Video

It is my pleasure to warmly welcome you to the IE Brown Student Blog! As Admissions Director of this great program, it is a priviledge to kick-off this blog, which is aimed at providing a peek into the lives and experiences of our pioneering inaugural class, with occasional excerpts from the Admissions and Program team members too. The inaugural class of the IE Brown Executive MBA opened in Providence in early March 2011. Our 24 students experienced two intense face-to-face weeks in Providence, before returning to their jobs and homes. As I write, they are now in the second week of their first learning online period and are adjusting to their new lives as IE Brown Executive MBA students…..enjoy!

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