Caterpillar posts 70% fall in quarterly earnings

CHICAGO (Reuters) - Caterpillar Inc ( CAT.N ) on Friday reported a better-than-feared 70% fall in second-quarter earnings as the pandemic made customers wary of big purchases.

Revenue fell 31% to $10 billion with sales declining across all regions and in its three primary segments of construction, mining, and energy and transportation.

Caterpillar’s earnings come a day after the U.S. economy reported its deepest contraction since the Great Depression.

The world’s largest economy shrank at a 32.9% annualized rate last quarter with a 37.7% plunge in spending on equipment.

With lower demand oil prices have also fallen, hitting spending on non-residential building such as mines and wells.

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.

Powered by Blogger.