Reuters

(Reuters)

Caterpillar Posts Lower 2Q Earnings, Lowers 2016 Outlook

Industries Reuters

Caterpillar on Tuesday reported a lower quarterly net profit and lowered its full-year sales forecast as a weakened global economy combined with persistent political uncertainty to keep sales of new machinery sluggish.

Continue Reading Below

The company, the world's largest construction and mining equipment maker, lowered its full-year 2016 sales outlook to a range of $40 billion to $40.5 billion, from $40 billion to $42 billion.

Caterpillar expects earnings of $2.75 per share, or $3.55 excluding restructuring costs, from $3.00, or $3.70 excluding restructuring costs.

At the same time Caterpillar raised estimated expenses for restructuring during full-year 2016 to $700 million, from $550 million.

"Despite a solid second quarter, we're cautious as we enter the second half of the year," Chief Executive Officer Doug Oberhelman said in a statement.

Caterpillar reported second-quarter profit of $550 million, or 93 cents per share, down from a revised $802 million, or $1.31, a year earlier.

Continue Reading Below

In premarket trading, Caterpillar shares fell nearly 1 percent to $78.

 

(Reporting By Meredith Davis in Chicago; additional reporting by Nick Carey)