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.
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