CHICAGO Caterpillar Inc on Friday reported lower second-quarter earnings as the recession sparked by the coronavirus pandemic made customers wary of big purchases, crimping equipment sales.
In the second quarter, the heavy equipment maker reported a profit of 84 cents per share, down 70.3% year on year.
Analysts surveyed by Refinitiv, on average, expected earnings of 68 cents per share.
Revenue declined 31% year on year to $10 billion, with sales declining across all regions and in its three primary segments, construction, mining, and energy and transport.
The heavy equipment maker, considered a bellwether for economic activity, said its financial results will be impacted by continued global economic uncertainty due to the pandemic. As a result, it declined to reinstate its earnings guidance which was withdrawn in late March.
9 Killed, 57 Trapped & 12 Rescued In Landslide in Kerala's Idukki District | CNN News18
Caterpillar said it is cutting costs and prioritizing investment in its services business which is expected to hold up better than equipment demand in the downturn.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor