Share prices of Caterpillar (CAT) has Caterpillar share price recovered about 10% since December 2013 , compared with a loss of 8 % for the S & P 500 Index. Better than expected Q 2013 performance of the company further strengthened the momentum that the share price has increased by 6% after the announcement . Although I think CAT is a long- term quality , the potential buyer must take care of the short-term volatility of the stock, Caterpillar share price for the following reasons:
Q 2013 results are encouraging. The company released its Q 2013 January 28, 2014 a turnover and higher than consensus earnings estimates . For the future , I believe the following developments benefit from share price: To continue to create value for shareholders, management expects Caterpillar share price to incur $ 100 million to $ 200 million of additional restructuring costs in 2014 over expenditures of $ 300 million previously announced . As part of the restructuring program , the company plans to consolidate many small institutions to reduce costs and improve efficiency in manufacturing . Management expects to achieve annual savings of approximately $ 200 million in 2014 ( which corresponds to Caterpillar share price approximately $ 0.20 PEPS) and $ 400 million to $ 500 million per year in 2015 and beyond.
CAT has generated more than $ 7 billion of free cash flow in 2013 mainly due to the release of the cash management of working capital. He also managed to reduce its debt -equity ratio of 27 % as of December 2013 Caterpillar share price, which is the lowest level in 10 years and supports the generation of greater future cash flows 31.
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