Cat sales and profits down in first quarter; outlook lowered again

Caterpillar Inc. said Friday its first quarter sales and profits were down from a year earlier but that the numbers posted were not unexpected.

The company still scored a profit for the quarter and its balance sheet remains strong, but the immediate outlook doesn't call for much improvement, the Caterpillar release said. That outlook was lowered for the rest of 2016.

The company had a profit of 46 cents a share, well off the profit of $2.03 a share posted in the first quarter of 2015. But sales and revenues were down 26 percent, from $12.7 billion to $9.5 billion, and restructuring costs took another 21 cents a share from the bottom line, the company said.

"While first quarter results were about as we expected, sales and profit were well below the first quarter of 2015," said Chairman and CEO Doug Oberhelman. "Sales declined across the company with substantial reductions in construction, oil and gas, mining and rail. While many of the industries we serve are challenged, we remain focused on what we can control: the quality of our products, our market position, safety in our facilities and continued restructuring and cost reduction. In fact, our period costs and variable manufacturinng costs in the quarter were nearly $500 million lower than the first quarter of 2015."

Still, Caterpillar lowered its outlook for the rest of the year, including a 2 percent drop in the 2016 outlook for sales and revenues to a midpoint of $41 billion, down from $42 billion. The profit outlook dropped from $3.50 a share, or $4 a share excluding restructurig costs, to $3 a share, or $3.70 without the restructuring costs.

The company attributed the lower outlook to continued challenges in several segments, eve with signs of improvement in commodity prices and construction equipment sales in China.

Caterpillar inncreased its expected restructuring costs for the year by $150 million, to $550 million, primarily because of its decision the end production of on-highway vocational trucks.

But Oberhelman said Caterpillar is looking ahead and investing for the future. "We're investing substantially in (research and development), driving forward on our Lean journey, continuing implementation of Across the Table (process) with our dealers and acceleratinng our digital strategy," he said.

Referring more to the digital strategy, Oberhelman said the companhy is working with digital partners to develop "the data architecture that will make our products smarter and help our customers improve productivity and safety. Our goal is to help our customers be more productive, better manage their fleets and make more money with Caterpillar than they could with our competitors."

"One thing that I am certain of is that it's times like these when the Caterpillar team demostrates the innovation and ambition to be the leader in all we do."

The investment community reacted favorably to the report early in the day, even though the profit excluding restructuring costs was a penny lower than the consensus of a analysts who cover Caterpillar, 68 cents a share. However, sales and revenues were higher than estimates.

By the end of trading, however, Caterpillar stock was at $78.32 a share, down 34 cents.

Other highlights from the first quarter report include:

• Because of a change in accounting principle for pension and postretirement plans, Caterpillar recast its 2015 earnings to reflecr actuarial gains and losses when they occur rather than amortizing them. Therefore, the 2015 profit was $4.18 a share rather than $3.50 a share. The first quarter 2015 profit was recast from $1.81 a share to $2.03.
• Caterpillar's global workforce stood at 114,300 as of March 31, a decrease of 15,100 from a year earlier.
• Of those cuts, 8,000 were from the U.S. workforce and 7,100 from the non-U.S. workforce.
• Sales and revenues were down in ever geographiic region of the world served by Caterpillar. They were down 24 percent in North America and 41 percent in Latin America.

Area home sales up in first quarter

Home sales were up in the first quarter when compared with a year earlier and prices continued to rise, as well, according to the Peoria Area Association of Realtors.

There were 954 homes sold, including single family houses and condominiums, during the first quarter, an increase of 3.8 percent from the 919 closed sales during the first three months of 2015, the association said.

The median home sale price was up 6.4 percent to $110,675 from $104,000 from the first quarter of 2015. The average home sale price in the Peoria area was up 2.2 percent to $133,501, compared with $130,601 in the first quarter of 2015.

PAAR President Becky Peterson said with the weather getting better, sales should continue to be strong.

“We are in the heart of the selling season. Buyers have to make house hunting a priority and review listings regularly. It is not unusual in this market for listings to be here today and gone tomorrow as some receive a contract to purchase within the same day,” Peterson said.

“With temperatures warming up so is the pace of buyers who are out in the market shopping for a home and ready to make their move this year. We should see more competition for properties,” she said.

PAAR reported home sales activity was up 7.6 percent in March with 425 sales as compared to March of last year with 395 sales.

“Inventory is the primary need as we work our way into 2016. There are certain price ranges that could use a much needed boost in inventory levels in order to maintain a more balanced market and meet the demands for buyers,” said Peterson. 

“The hottest price range that tends to sell the fastest falls between $125,000 and $175,000, which also tends to be a hot commodity item for first-time buyers as well. We can anticipate the 30-year fixed rate mortgage to remain very attractive through the spring/summer home buying season below 4 percent. Lower rates mean improved housing affordability for all buyers.”

According to Freddie Mac, the 30-year fixed rate mortgage averaged 3.58 percent for the week ending April 14, down from 3.67 percent a year ago. This is the lowest level for the year. The rate also represents the lowest mark since May 2013, according to Freddie Mac.

For the first quarter of 2016, there were 1,264 pending home sales reported, up 1.4 percent from 1,247 pending sales reported a year ago. Inventory of homes for sale was relatively even, up 0.4 percent to 2,506 listings in March compared to 2,497 listings on the market in March 2015. There were 2,386 listings on the market in February of this year.

March had 815 new listings, a 32 percent increase over February’s 618 new listings. The month’s supply of inventory dropped 3.6 percent to 5.4 months from 5.6 months in March 2015, indicating demand is increasing relative to supply.

It took less time to sell a home in the first quarter in the Peoria area; the average was 90 days versus 98 days in the same period in 2015.

 “We are looking forward to a decent year for real estate. New home construction is picking up making way for more housing inventory. Renters are finding this market is affording them the opportunity to make an investment in their future to purchase a property of their own instead of paying someone else’s mortgage,” said Peterson.

“The second quarter tends to rank as the best time to list a home for sale, and for sellers this also offers an opportunity for them to make a move to their dream home. Sellers who act quickly to get their home listed will benefit from more exposure to buyers but overpricing in this market means it may take longer to sell,” she said. 

PEORIA AREA ASSOCIATION OF REALTORS®

1^st QUARTER HOME SALES, AVERAGE & MEDIAN SALES PRICES

'Hands on a Hardbody,' a musical about endurance, opens at Eastlight

dyDown in Texas, the word hardbody is as much a part of everyday vernacular as pickup truck is in these parts of the country. In fact, Texans know that hardbody means pickup truck.

Around here, though, hearing somebody refer to a hardbody often means a person tiptop shape. And hearing the title of a show called “Hands on a Hardbody” may conjur images of… well, of pornography.

That is the battle Chas Killen is facing at Eastlight Theatre in East Peoria. As director of the regional premier of the musical “Hands on a Hardbody” he wants the word to get out that it a musical about people trying to win a pickup truck at a Texas Nissan dealership by outlasting each other in a test of endurance.

The show itself, featuring some of central Illinois’ best voices singing new songs that have a southern feel, is anything but a test of endurance. It’s a fast-paced and fun script based on a real-life documentary about what people will do to win something for free.

“This has been an enjoyable experience with a great group of people. It’s a good, clean show and we need to let people know they will enjoy it because it is fun,” Killen said.

“Hands on a Hardbody” opens Friday at 7:30 p.m. in the auditorium of East Peoria High School. Tickets are $19 and can be ordered online at www.tickets.eastlighttheatre.com.

Show times are 7:30 p.m. on April 22, 23, 27, 28, 29 and 30 and 2 p.m. on Sunday, April 24.

Audiences will get the gist of the show immediately when they see the rather simple, yet quite believable set. It looks like an auto dealer’s parking lot with a cherry red Nissan pickup truck in the middle of the stage. The pickup, said Eastlight artistic director Steve Cordle, was the one used for rehearsals for the Broadway performances of “Hands on a Hardbody.”

They will meet the 10 hard-luck Texans who are chosen to participate in the contest to win the truck. The rules are simple: Each contestant must keep at least one hand on the truck at all times or they will be disqualified. The last person standing wins the truck.

The real-life contest on which the show is based last five days before it ended.

“Considering it took five days and this show tells the story in just two hours, the music is it is very important in conveying how it all happened. Each character has their own song so we get to know them,” Killen said.

He came up with the idea of using a strobe light and the sound effect of a ticking clock to covey the passage of one day to the next, a very effective way to do it without confusion. The stage lighting also is effective in showing how time passes during the hot Texas days and cooler nights.

The show starts with the character Benny Perkins, portrayed by local community theatre veteran Dave Montague, telling the story of how the contest started.

Other contestants are Connie Nabors as Janis, Courtney Swan as Heather, Vicky Snyder as Kelli, Wendi Fleming as Norma, Steve Hargis as Chris, Brandon Hartman as Greg, Nick Benson as Jesus, Brandon Chandler as Ronald and Kevin Paul Wickart as J.D.

Other performers are Matt Stubbs as the radio reporter Frank, Thom Parker as Janis’s husband, Cathy Sutliff as J.D.’s wife Virginia and Anne Snyder and Scott Moore as the contest representatives Cindy and Mike.

Music is provided by a five-piece band directed by Gary Nabors.

“Hands on a Hardbody” is not well known because it didn’t last long on Broadway even though it received several Tony Award nominations, so there won’t be recognizable songs. But Killen said several stand out, including “Stronger,” “Born in Laredo” and “Joy of the Lord.” The music and lyrics were written by Amanda Green and Trey Anastasio and the book is by Doug Wright.

Killen said he hopes people learn that the show isn’t about anything dirty. “I’m afraid the title alone might turn some people off, which is too bad because they would be missing a great time,” he said.

Killen said the characters represent a microcosm of society and believes different audience members will find themselves rooting for different characters to win the truck. “I think people will see a little of people they know in life in these characters, perhaps even members of their own family. That just adds to the fun and appeal of the show,” he said.z

Benefit for those infected and affected by AIDS set for Friday

AIDS/HIV awareness will be at the forefront of a benefit Friday night that was planned as part of an upcoming Peoria Players Theatre production of the renowned musical “Rent.”

“A Night With Friends,” a cabaret-style event scheduled for Friday at 6 p.m. at The Waterhouse in downtown Peoria will benefit area people who are both affected and infect with the HIV virus that causes AIDS. Tickets to the event, which includes food, beer and wine, are $70.

“Rent” is a rock musical written by Jonathan Larson in the early 1990s. It takes place in New York City’s East Village and focuses on the lives of struggling artists. It details issues and emotions at the height of the HIV/AIDs epidemic. 

It came to life on Broadway in 1996, and won many awards including a Tony Award for Best Musical. The Peoria Players production is scheduled for June 3-12. Now in rehearsal, is it directed by Deric Tucker Kimler.

Kimler and another well-known community theatre actor/director, Chip Joyce – who directed “Rent” at Eastlight Theatre in East Peoria in June 2009 – decided to do a wonderful fundraiser, with proceeds earmarked for Central Illinois Friends of People with AIDS.

The show will host a large diverse group of local theater favorites. It will kick off with a dance number and will have a wide variety of entertainment. It will be emceed by Chip Joyce and include some games such as a “dating game” that has audience participation. Adam Sitton will be the D.J. and there will be  singing and dancing by local theater favorites including many of the cast of Rent.

Vintage-style Thomas Edison lights will be hanging that evening. Kimler said a famous quote by Thomas Edison inspires this fundraiser: “The doctor of the future will give no medicine but will interest his patients in the care of human frame, diet, and in the cause and prevention of disease.” 

Kimler said we have not gotten to that point yet and there is still a great need for awareness and accomplishing Edison’s hope that one day doctors will be treating HIV/AIDS and other serious diseases with preventive care.

The cost of living with HIV/AIDS virus is often catastrophic to the person with the virus, and also for caregivers and family with the virus.

The proceeds from A Night With Friends through will help those both affected and infected with HIV/AIDS by providing financial help, mental help, medical care cost help, and many other forms of support. This is a very expensive virus with many secondary diseases.

Peoria County has the highest STD rates in the state of Illinois.

“HIV/AIDS is not a gay disease; this affects all of us. We need to stop looking at all of our differences and realize that HIV/AIDS is a human disease that affects all human beings from all walks of life,” Kimler said. 

To order tickets to A Night With Friends visit https://www.eventbrite.com/e/a-night-with-friends-tickets-22611284962