Caterpillar’s profit drops amid weak equipment demand and tariff impact
Photo: Reuters
Caterpillar reported a decline in its second-quarter profit, citing sluggish demand for construction equipment and increased costs linked to U.S. tariffs. The company’s adjusted earnings fell to $4.72 per share from $5.99 a year earlier.
Caterpillar, considered a key indicator of the industrial economy, saw its shares drop about 6% in premarket trading following the report, News.Az reports, citing Reuters.
The downturn reflects broader challenges including high interest rates, inflationary pressures, and the impact of sweeping tariffs on U.S. imports. These factors have led dealers to reduce equipment orders and adjust inventories to meet softened demand.
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