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		<title>Caterpillar Q2 Results</title>
		<description>Discuss Caterpillar Q2 Results</description>
		<link>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results</link>
		<lastBuildDate>Wed, 22 May 2013 17:06:23 +0000</lastBuildDate>
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			<title>shaunsnoll says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3222</link>
			<description><![CDATA[but inventories moving up and down can move up and down with profits and can often have negative and other times positive correlation. simply reducing inventory does not necessarily mean profits are positively impacted by that. take UTX that reported today, they dramatically reduced inventories in a few of their businesses while at the same time their profits are also imploding, this doesn't get into the fact that inventories will fluctuate on seasonal patterns often depending on the industry/business. you are right about LIFO liquidations, however, reducing inventory will ALWAYS impact cash flow in a positive way but not always impact earnings in either a positive or negative way. i see your point and don't want to get into the trees and miss the forest but just want to make sure one or boombustblog alumni is not confused on accounting issues here.]]></description>
			<dc:creator>shaunsnoll</dc:creator>
			<pubDate>Tue, 21 Jul 2009 22:13:57 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3222</guid>
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			<title>Reggie Middleton says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3221</link>
			<description><![CDATA[Actually, economic reduction of inventory is a positive as long as inventories aren't cut so thin as to inhibit ramping up in a recovery, but there have been many instances of LIFO games that are nothing but accounting shenanigans that may boost share prices in the beginning, but as people in the know find out, may very well hurt the share price. I don't know which will be the case with CAT until they release their quarterly reporting docs, but I just wanted to all to know that games with inventories are a popular shenanigan in the manufacturing and industrial industries. According to another reader, "$.17 came from lower tax rate and $.14 from LIFO inventory cleansing". If one were to strip those out, it is (coincidentally ) right on point with my estimate of $.29.]]></description>
			<dc:creator>Reggie Middleton</dc:creator>
			<pubDate>Tue, 21 Jul 2009 17:10:01 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3221</guid>
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			<title>shaunsnoll says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3220</link>
			<description><![CDATA[i've looked at IBM recently. that company's management is amazing. what are you interested in?]]></description>
			<dc:creator>shaunsnoll</dc:creator>
			<pubDate>Tue, 21 Jul 2009 16:11:06 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3220</guid>
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			<title>shaunsnoll says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3219</link>
			<description><![CDATA[inventory reduction has no direct effect on profits but reducing inventory DOES impact cash flow positively.]]></description>
			<dc:creator>shaunsnoll</dc:creator>
			<pubDate>Tue, 21 Jul 2009 16:02:30 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3219</guid>
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			<title>Rumi says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3218</link>
			<description><![CDATA[BTW, has anyone looked at IBM, AAPL, YHOO?]]></description>
			<dc:creator>Rumi</dc:creator>
			<pubDate>Tue, 21 Jul 2009 14:49:20 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3218</guid>
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			<title>Rumi says:</title>
			<link>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3225</link>
			<description><![CDATA[http://finance.yahoo.com/news/Caterpillar-Delivers-prnews-3554008320.html?x=0&.v=1 "[The second-quarter profit of $371 million was down $735 million from $1.106 billion in the second quarter of 2008.] ...The company reduced inventory in the second quarter by more than $800 million, and through the first half of the year inventory has declined by more than $1.6 billion." It looks like *all* their profit came from inventory reduction. "Sales and revenues of $7.975 billion were down 41 percent from $13.624 billion in the second quarter 2008. [...]For sales and revenues, the range has been tightened to $32 billion to $36 billion [...]Our 2009 sales have been hurt by weak end-user demand and significant reductions in dealer inventory. In fact, dealers have reduced their machine inventories by about $1.5 billion through the first half of the year and could reach close to $3 billion by year-end."" And it looks like they don't see much improvement for the rest of the year. Given the pop in price and their debt loads, my guess is that they're going to start issuing new shares asap.]]></description>
			<dc:creator>Rumi</dc:creator>
			<pubDate>Tue, 21 Jul 2009 14:47:28 +0000</pubDate>
			<guid>http://boombustblog.com/reggie-in-the-news/item/970-caterpillar-q2-results#comment-3225</guid>
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