PEORIA, Illinois -- Caterpillar had an extremely successful third quarter. It reported the highest 3rd quarter profits per share in its history.
The company's stock dropped though to start the new work week Monday, October 29. Since the announcement, Caterpillar's stock had dropped 10%. The company was again, a big topic of conversation on Your Money, with Investment Advisor Mark Grywacheski Monday on Good Morning Quad Cities. Grywacheski says the company is continuing to face higher operating and manufacturing costs from rising interest rates and U.S. tariffs on imported steel and aluminum.
"To offset these higher costs, Caterpillar will continue to pass these costs onto consumers in the form of higher retail prices," Grywacheski said Monday. "Caterpillar can't shake these concerns that rising costs, trade disputes, and a weakening of the global economy at some point will start to materially impact future revenues and profits, even though Caterpillar has proven all year long it has muscled through those very same challenges."
Wednesday morning, October 31, Caterpillar's stock will open back up $3.52, up more than 3%.
"If you're an investor with Caterpillar, you've got to be so frustrated," Grywacheski said. "'What more can Caterpillar bring to the table than record profitability quarter after quarter after quarter?' Again though, the market's looking at what's going to happen in the future with all of these challenges and concerns we face."
Grywacheski had an interesting outlook on the amount of money people are going to spend this Halloween. He says people spend about $87 for Halloween on things like...candy each and every year! Your Money With Mark airs live on Good Morning Quad Cities every Monday between 5 a.m. and 5:30 a.m. To live stream our newscast from our website, click here.
Happy Halloween Everybody!
