the two-tier global economy
[from Merrill Lynch chief economist David Rosenberg’s top 10 list for
the week]
10) “We seem to have a two-track world economy”
Indeed, the quote of the week may have to go to Mike DeWalt, who is
director of
investor relations at CAT – “We seem to have a two-track world
economy”…
weakness in the USA and continued strength abroad. Just look at the
geographic
revenue split in the latest quarter: +61% y/y in Lat Am, +24% in the
Pac Rim,
+32% in EAFE and down 10% in the USA. For the year as a whole, CAT is
projecting sales outside North America to rise 24% and to decline 12%
in this
neck of the woods. Sign of the times was the headline on page B3 of the
Saturday NYT – “Caterpillar Profit Down 21%, Slump in Home Building
Cited”.