The construction and mining equipment manufacturer Caterpillar predicted U.S. tariffs would result in a maximum $1.5 billion loss during 2025 with the largest financial impact occurring during the second half of the year.
The company reported adjusted earnings of $4.72 per share during the second quarter which fell short of analyst predictions of $4.90 while revenue decreased by 1% to $16.7 billion. CEO Joe Creed predicted that Q3 tariff-related losses would amount to $400 million to $500 million.
The construction industry experienced a 2% decline in sales across North America and Asia-Pacific because of reduced spending caused by rising interest rates. The demand for excavators and backhoes has decreased yet energy and transportation units will drive small annual sales growth.
The industrial demand bellwether Caterpillar experienced a 1% decline in its stock price during the first part of trading. The global manufacturing sector faces ongoing trade uncertainty which affects its performance but supply chain adjustments together with pricing power could help reduce some losses according to analysts.
