Caterpillar warns of up to up to $ 1.5 billion in prices, profit is lacking in low demand
(Reuters) -Caterpillar missed Tuesday the expectations of profits in the second quarter due to the slow demand for construction equipment and warned up to 1.5 billion dollars of costs related to American prices in 2025.
Even if the company has been able to compensate for the impact of rumbles of the supply chain and cost inflation through price increases, a slowdown in construction expenditure in the United States has led to a decline in demand for its products such as excavators and retrocavant chargers.
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Caterpillar’s actions, often considered Bellwether for the industrial economy, have dropped approximately 3% of market prior exchanges after also reporting a pricing impact of $ 400 million in the third quarter.
Radical prices on American imports have had an impact on businesses in all sectors, which has very much prompted their supply chains and locate production. Caterpillar has also reported unfavorable manufacturing costs largely due to prices.
Including the prices, the company based in Irving, Texas, provides in 2025, the beneficiary margins adjusted in the lower half of its annual target range.
During the current results season, companies declared a combined loss of $ 12.1 billion to $ 13.4 billion between July 16 and August 1 for 2025, Reuters tariff tracker emissions. The majority of them came from the industrial and manufacturing segment.
Trump said prices are a response to persistent American commercial imbalances and the decline in American manufacturing power, and that movements will bring jobs and investments to the nation.
The quarterly income in the Asia-Pacific region dropped by 2% to 2.89 billion dollars. Its North American sales, which represent more than half of the overall income, fell by 2% to around 8.9 billion dollars.
The profit adjusted in the second quarter fell to $ 4.72 per share, against $ 4.90, according to data compiled by LSEG.
Its sales and revenues for the quarter dropped by $ 16.7 billion from $ 16.7 billion compared to a year ago.
The company expects its annual sales and income to be slightly higher than last year and compared to its previous expectations concerning the dishes, in anticipation of the request for its energy and transport unit.
(Report by Nathan Gomes in Bengaluru; edition by Arun Koyyur)
