US : Caterpillar posts lower 2nd-quarter earnings, lowers 2016 outlook

Caterpillar Inc (CAT.N) 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.

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.

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