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Can Parker Be Immune To The Caterpillar Effect?

On the same hour of January 27, two companies in similar markets reported markedly different outlooks for the year ahead.

Caterpillar Inc. (CAT) describes itself as the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates in the sectors of mining, energy, construction and transportation.

Reporting the fourth quarter, CAT announced net profit down 25% over the same quarter a year ago on revenues down 1.5%. More importantly, they projected 2015 revenue 10% ($5 billion) less than analyst estimates. 2015 earnings were projected at $4.75 per share or 29% less than analyst expectations.

During the earnings call, Mike DeWalt, Caterpillar VP of Financial Services summed up the 2015 outlook:

Now for the 2015 outlook, well it's shaping up to be a much tougher year than we were expecting when we went through our preliminary view