Caterpillar drops after company cuts guidance, citing tariffs and lower demand in China

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Caterpillar drops after company cuts guidance, citing tariffs and lower demand in China
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Shares of Caterpillar dropped after the company posted disappointing second-quarter results as higher material costs including tariffs and lower demand in China made a dent in its profit, SquawkCNBC reports.

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plunged after the company posted disappointing second-quarter results as higher material costs including tariffs and lower demand in China made a dent in its profit.

The heavy machinery manufacturer also lowered full-year earnings guidance to be at the lower end of previous range of $12.06 to $13.06, short of the estimate of $12.24 per share.The worse-than-expected results are partially due to the increase in manufacturing costs, which came from "higher material costs, including tariffs, variable labor and burden and warranty expense," the company said.

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