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 70.3% year on year.
Analysts surveyed by Refinitiv, on average, expected earnings of 68 cents per share.
Revenue declined 31% year on year to $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 As a result, it declined to reinstate its earnings guidance which was withdrawn in late March.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.
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