Excluding restructuring costs, profit per share was $1.09, down from $1.40 in the quarter a year earlier.
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In what is likely to be our fourth down year for sales and revenues, we’re proud of what we’re accomplishing – our machine market position has increased, including in China, product quality continues to be at high levels, and the safety in our facilities is world class, ‘ said Caterpillar Chairman and Chief Executive Officer Doug Oberhelman.
“World economic growth remains subdued and is not sufficient to drive improvement in most of the industries and markets we serve”, Oberhelman said.
The Peoria, Illinois-based company lowered its full-year 2016 sales outlook to a range of $40-billion to $40.5-billion, from $40-billion to $42-billion.
The company now expects to earn $3.55 a share this year, excluding restructuring costs.
Revenue slid 16% to $10.34 billion, compared to $12.3 billion a year earlier. Global uncertainty continues, and the recent Brexit outcome and the turmoil in Turkey add to risks, especially in Europe.
Caterpillar shares, part of the Dow Jones industrial average .DJI, rose 1.7 percent.
Sales and profit for the second quarter beat analysts’ estimates.
Caterpillar has already cut thousands of jobs due to the slowdown in its businesses. As of June 30, the company employed about 113,000 workers.
At the same time Caterpillar raised estimated expenses for restructuring during full-year 2016 to $700 million, from $550 million.
Fellow manufacturer 3M Co. also reported second-quarter results Tuesday.
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Multi-industry manufacturing giant General Electric (GE.N) affirmed its 2016 forecast on Friday, but weak demand for new oil, gas and transportation equipment and a 16-percent decline in new orders caused concern for investors.
