Coronavirus hits Caterpillar's quarterly earnings

Coronavirus hits Caterpillar's quarterly earnings

Caterpillar Inc on Friday reported lower second-quarter earnings as a crippling recession sparked by the coronavirus pandemic made customers wary of big purchases, crimping equipment sales.

FILE PHOTO: A row of excavators are seen at the Caterpillar booth at the CONEXPO-CON/AGG convention
FILE PHOTO: A row of excavators are seen at the Caterpillar booth at the CONEXPO-CON/AGG convention at the Las Vegas Convention Center in Las Vegas, Nevada, U.S. March 9, 2017. REUTERS/David Becker/File Photo

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 70.3per cent year on year.

Analysts surveyed by Refinitiv, on average, expected earnings of 68 cents per share.

Revenue declined 31per cent year on year to US$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 As a result, it declined to reinstate its earnings guidance which was withdrawn in late March.

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.

(Reporting by Rajesh Kumar Singh; editing by Jason Neely and David Evans)

Source: Reuters

Bookmark