Caterpillar sales sag 31% in coronavirus slowdown

CEO: Caterpillar ready to respond quickly to any positive or negative changes in customer demand

Caterpillar profit fell 70 percent as the economic slowdown caused by COVID-19 slashed demand.

Continue Reading Below

The Deerfield, Illinois-based heavy-equipment manufacturer earned $458 million, or an adjusted $1.03 per share, as revenue slid 31 percent from a year ago to $10 billion. Wall Street analysts surveyed by Refinitiv were anticipating adjusted earnings of 64 cents per share on revenue of $9.69 billion

TickerSecurityLastChangeChange %
CATCATERPILLAR INC.145.91+0.77+0.53%

“In the second quarter, our employees and dealers remained dedicated to providing the essential products and services the world needs under very challenging conditions,” CEO Jim Umpleby said in a statement. "We will adjust production as conditions warrant and are prepared to respond quickly to any positive or negative changes in customer demand."

Caterpillar, which is considered a bellwether of the global economy, saw sales in all three of its main business segments decline.

Construction sales fell 37 percent from a year ago to $4.05 billion, a decline exacerbated by stiffer competition in China. Mining revenue was off 35 percent, at $1.83 billion, while energy and transportation revenue slid 24 percent to $4.15 billion.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Caterpillar withdrew its guidance for the remainder of 2020 on March 26 and has not yet provided an update due to the uncertainty caused by COVID-19.

Its shares have fallen 7.34 percent this year through Thursday, lagging the S&P 500's 0.48 percent gain.