(Reuters) – Caterpillar (CAT) reported lower profits in the second quarter on Tuesday due to slow demand for construction equipment, warning that costs associated with U.S. tariffs in 2025 are as high as $1.5 billion.
The company's stock is often seen as a leading position in the industrial economy, also marked a tariff impact of $400 million to $500 million in the third quarter, down about 4% in the listing transaction.
High tariffs on U.S. imports have affected companies in various sectors, prompting many to re-seat chains and position production.
In addition, the headwinds of high interest rates and inflation have prompted dealers to expand based on equipment orders and readjust inventory to meet demand.
Adjusted profit fell to $4.72 per share in the second quarter, compared with $5.99 a year ago. Sales and revenue for the quarter fell 1% from a year ago to $16.7 billion.
The company now expects its annual sales and revenue to be slightly higher than last year and compared to previous expectations for apartments.
(Reported by Nathan Gomes in Bangalore; Editor of Arun Koyyur)