Page 25 - ATD 23OCT,2015

BUSINESS A25
Friday 23 October 2015

Caterpillar weighed down by slowing economic growth

PEORIA, Ill. (AP) — Caterpil- sharply. workforce. It then could serves have been afflicted dropped in the period, as
lar was stung by ongoing Shares fell more than 2 per- cut thousands more, raising did revenue for the finan-
weakness in the mining and cent before the opening the total above 10,000, as it by problems beyond the cial products segment.
oil and gas industries during bell Thursday. figures out which factories Caterpillar said that its to-
the third quarter and rev- Last month Caterpillar an- and manufacturing sites to company’s control. tal revenue decline was
enue fell short of expecta- nounced another round of close through 2018. mostly due to lower sales
tions. job cuts that could exceed Caterpillar makes diesel Quarterly revenue fell from volume and the impact of
The construction and min- 10,000 people through and natural gas engines, the stronger dollar. Sales
ing equipment maker low- 2018. The company said industrial gas turbines and $13.55 billion last year to dropped 31 percent in Lat-
ered its full-year earnings that it would cut as many diesel-electric locomo- in America and fell 25 per-
forecast with expectations as 5,000 people mostly by tives, aside from construc- $10.96 billion, well short cent in the Asia Pacific re-
that the costs of restructur- the end of this year from its tion and mining equip- gion. North American sales
ing the company will rise salaried and management ment. Several sectors that it of $11.11 billion that Wall slipped 17 percent. q

Street was looking for, ac-

cording to a survey by

Zacks Investment Research

expected .

Machinery, energy and

transportation sales

Cheap fuel, rising revenue help boost Southwest Airlines

A Southwest Airlines plane with a new paint job flies over Love Field in Dallas. Southwest reported that it expects higher fares. items, Southwest said it
quarterly financial results Thursday, Oct. 22, 2015. The stock rose more than 7 earned 94 cents per share.
percent in afternoon trad- That topped Wall Street ex-
(AP Photo/LM Otero) ing Thursday. pectations, as nine analysts
Southwest said Thursday surveyed by Zacks Invest-
DAVID KOENIG to a record third quarter but that could be about that net income increased ment Research predicted
AP Airlines Writer profit of $584 million. to change. Southwest said by $225 million from last 92 cents per share.
DALLAS (AP) — Cheaper Passengers paid lower av- that a key revenue per mile year’s third quarter, helped Revenue rose 11 percent,
fuel and higher revenue erage fares in the third figure will rise in the fourth by fuel-pump savings of to $5.32 billion, which also
boosted Southwest Airlines quarter than a year ago, quarter, likely indicating $450 million, or 32 percent. topped the analysts’ fore-
CEO Gary Kelly called it “a cast.
terrific quarter.” Three analysts surveyed by
“While it is true that the Zacks expected $5.1 billion.
majority of the 71 percent Southwest has been grow-
surge in our earnings per ing rapidly in its hometown
share was due to a dra- of Dallas since federal re-
matic drop in jet fuel pric- strictions on flights at Love
es, there are a lot of other Field expired a year ago.
good things happening,” That helped Southwest in-
Kelly said on a call with an- crease traffic by 9 percent
alysts. and fill 85.4 percent of its
He cited solid demand, seats, an increase of 1 per-
the smallest percentage of centage point from a year
empty seats in Southwest’s ago.
history, and a new credit- The average fare on South-
card deal that brought in west fell 4 percent, to
more cash. $154.33 for a one-way tick-
Excluding non-repeating et. q

Google’s 3Q earnings surge 45 pct, Alphabet stock soars

MICHAEL LIEDTKE er pace than revenue. The report covered a three- and search for cures to Google’s search engine,
AP Technology Writer Google’s revenue for the month period ending Sep- health problems. maps, email and YouTube
SAN FRANCISCO (AP) — three months ending in tember that punctuated That breakdown is expect- video site.
Google’s third-quarter re- September totaled $18.7 Google’s 11-year history ed to reveal how much Even though Android is
port is getting an “A’’ from billion. After subtracting as a publicly traded com- money Google would have being used on 1.4 billion
investors as it enters a new ad commissions, revenue pany. Earlier this month, been making in recent devices around the world,
era under Alphabet, its new totaled $15.1 billion, a 15 Google became a sub- years if it hadn’t been di- Google still has been hurt
parent company. percent increase from last sidiary of Alphabet Inc., a verting billions of dollars to by the move to mobile.
A third-quarter report re- year. holding company created finance risky projects that That’s because advertisers
leased Thursday indicated Both the earnings and rev- to oversee the hodge- Alphabet CEO Larry Page haven’t been as willing to
that Google is making sig- enue topped the analysts’ podge of businesses that calls “moon shots.” pay as much for market-
nificant strides in the in- projections that steer inves- have been launched with Google’s profit margins ing messages shown on the
creasingly important mo- tors’ expectations. the tens of billions of dol- also have been squeezed smaller screens of smart-
bile market, with its earn- The results “show the lars that Google has made by the shift to mobile devic- phones.
ings surging 45 percent to strength of Google’s busi- as the Internet’s dominant es from laptop and desk- The phenomenon is one
nearly $4 billion, or $5.73 ness, particularly in mobile search engine. top computers during the reason that Google’s av-
per share. search,” Porat said. In January, Alphabet will past five years. The com- erage price for ads, a sta-
The gains also reflected the Investors agreed as Alpha- report Google’s financial pany was better prepared tistic known as “cost per
financial discipline that has bet’s stock soared $66.21, numbers separately from for the upheaval than most click,” has been declined
been imposed by Google’s or more than 10 percent, a group of peripheral busi- of its technology peers be- for four straight years. The
recently hired chief finan- to $718. If the shares hit that nessesthat experiment with cause it had the foresight third-quarter cost per click
cial officer, Ruth Porat: The level in Friday’s regular ses- self-driving cars, invest in to build and develop An- dropped another 11 per-
company’s operating ex- sion, it will be a new peak startups, make Internet- droid, a mobile operat- cent from the same time
penses rose at slightly slow- for the stock. connected thermostats ing system that features last year.q