Back to top

Image: Bigstock

Caterpillar (CAT) & Other Industrials Suspend Operations in Russia

Read MoreHide Full Article

Caterpillar Inc. (CAT - Free Report) recently decided to suspend operations in its manufacturing facilities in Russia. The company stated that operations in Russia have become increasingly challenging, including supply chain disruptions and sanctions.

The company announced that through its philanthropic organization, Caterpillar Foundation, it is donating more than $1 million to support both urgent and long-term needs of the Ukraine humanitarian crisis. The donations will help aid relief efforts in Ukraine and surrounding countries with water, food, clothing, hygiene sets, blankets, fuel for heating, medical supplies and housing support.

Caterpillar has been operating a fully-owned manufacturing facility in Tosno, near St. Petersburg, since March 2000. The Tosno plant manufactures two models of off-highway mining trucks, two models of excavators and components for machines and equipment, which are exported to factories in Europe. CAT has a parts distribution facility in Moscow. Russia accounts for approximately 8% of Caterpillar's annual revenues.

Caterpillar joins a slew of companies that have halted business or are cutting ties completely with Russia after its invasion of Ukraine.

Among other industrials, Deere & Company (DE - Free Report) has halted shipments to Russia and Belarus. Deere has had a presence in Russia since 1973. The company has an office in St. Petersburg and a manufacturing and parts distribution facility south of Moscow in Domodedovo.

The John Deere Foundation has been working directly with a number of organizations, including multiple UN agencies, in mobilizing resources to support Ukrainians affected by the crisis.

Rockwell Automation, Inc. (ROK - Free Report) , a global leader in industrial automation and digital transformation, recently announced that the company is suspending operations and sales in Russia and Belarus. Sales to Russia and Belarus account for less than 0.5% of Rockwell’s total revenues.

Rockwell has made a financial contribution to Project HOPE to provide relief to refugees in Ukraine and neighboring countries. The company has been encouraging employees to help in a variety of ways. Rockwell will match employee donations made to Project HOPE and is offering paid time off to support local volunteer efforts.

Johnson Controls International (JCI - Free Report) , which engages in engineering, manufacturing, commissioning, and retrofitting building products and systems, is suspending business in Russia. However, the company clarified that it would fulfill existing contractual obligations to the extent possible and in full compliance with sanctions, and will not be accepting new business or orders.

Zacks Investment Research
Image Source: Zacks Investment Research

Caterpillar currently has a Zacks Rank #3 (Hold). Rockwell Automation and Johnson Controls are also Zacks Ranked #3 stocks. Deere currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Caterpillar has an estimated earnings growth rate of 13.8% for 2022. CAT has a trailing four-quarter earnings surprise of 24.1%, on average. Over the past year, Caterpillar stock has fallen 4.6%.

Rockwell Automation has an estimated earnings growth rate of 12.8% for 2022. ROK has a trailing four-quarter earnings surprise of 9.5%, on average. Over the past year, Rockwell Automation's stock has gained 2.5%.

Deere has an estimated earnings growth rate of 19.4% for 2022. It has a trailing four-quarter earnings surprise of 20.6%, on average. Over the past year, DE stock has gained 1.2%.

Johnson Controls has an estimated earnings growth rate of 23.4% for 2022. JCI has a trailing four-quarter earnings surprise of 2.3%, on average. Over the past year, Johnson Controls stock has gained 2.8%.