Caterpillar (CAT) Gets Hand on Federal Contract

Heavy machinery maker, Caterpillar Inc. (NYSE:CAT) has recently been given a six-year fixed price agreement by the Defense Logistics Agency for supplying commercial construction apparatus. The agreement price, with economic price adjustment, is maintained at $776 million.

Caterpillar outscored 14 other potential buyers for the deal.

The machinery will be used in several US states (North Carolina, Illinois, Georgia, Minnesota, Arkansas, Iowa, South Carolina, Indiana) in addition to England, France, Belgium, Japan, Italy and Ireland. The Army, Navy, Air Force, Marine Corps and federal civilian groups would be making use of the equipment.
The operation is to be carried out at Cat’s plant in Mossville, Illinois with conclusion programmed by May 23, 2017.

Shifting readers focus to broader market, let’s consider market performance of other stocks that significantly affect same sector. Astec Industries, Inc. (NASDAQ:ASTE) fell -1.79% to settle at $26.96, Deere & Company (NYSE:DE) moved down -3.18% to end at $1.22 while CNH Global NV (ADR) (NYSE:CNH) slipped -0.03% to finish on Friday at $38.23.

Caterpillar Inc. (NYSE:CAT) last session volume of 9.57 million shares was surprisingly higher than its average volume of 7.19 million shares. The stock after opening at $85.08 hit high price of $86.80 and then closed at $85.52 by scoring -2.40%.

The liquidity measure in recent quarter results of the company was recorded 1.39 as current ratio and on the other side the debt to equity ratio was 2.40 and long-term debt to equity ratio also remained 1.68. The Company had total cash at hand $1.65 billion and a book value per share as $22.95 in the most recent quarter.

The stock price volatility was 2.53% for a week and 2.65% for a month as well as price volatility’s Average True Range for 14 days was 2.79 and its beta remained 1.85.

CAT generated revenue of 63.17 million in the following twelve months and earned $5.29 billion. The Company showed a positive 8.49% in the net profit margin and as well as in its operating margin which remained 12.10%. Company’s annual sales growth for the past five year was 7.69%.

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