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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (11431)	7/14/1998 3:57:00 PM
From: Jenna	Read Replies (2) \| Respond to of 120523

Caterpillar <CAT.N> Q2 EPS seen up near 10 percent CHICAGO, July 14 (Reuters) - Caterpillar Inc. is expected to report a second quarter earnings gain of about 10 percent, with strong U.S. and European markets continuing to offset weakness in Asia, analysts said. The First Call consensus estimate is for the Peoria, Ill.-based machinery and engine maker to post earnings of $1.24 a share, up from $1.13 a year ago. Caterpillar, which is scheduled to report earnings Wednesday, does not comment on earnings forecasts. Economic turmoil in Asia has contributed to lower interest rates in the United States, helping stimulate housing and construction business and demand for Caterpillar machines, said Alexander Blanton, analyst at Ingalls & Snyder LLC. "My guess is that overall there isn't any impact from Asia on Caterpillar," he said. In the past Caterpillar has exceeded analysts' estimates, but Thomas Burns Jr., analyst at Dresdner Kleinwort Benson, said the company is in the process of investing more in new products and research and development. "We expect a favorable quarter," he said, but the company's investment spending could limit how much its earnings exceed estimates, if at all. The heavy machinery sector has trailed the overall market in recent months, with investors concerned that economic problems in Asia and other emerging markets will lessen demand. Blanton said there have been six profit warnings for the quarter from heavy machinery companies in the index he follows, and two from companies he follows that are not in the index. But he also said there are favorable factors that should benefit Caterpillar and other companies in the future, including highway spending legislation that should bolster demand next year. Caterpillar shares were up 1-7/8 at 54. ((--Chicago Equities News at 312 408 8787, chicago.equities.newsroom@reuters.com)) -------------------- TAL News Server History: ADD TAKE : 98/07/14 12:00