Caterpillar reports lower than expected earnings on weaker Chinese sales

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Caterpillar reports lower than expected earnings on weaker Chinese sales
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CFO Andrew Bonfield says Caterpillar saw a $70m tariff bill in the quarter and higher labour and restructuring costs

24 July 2019 - 18:41Caterpillar excavator machines at a factory in Gosselies, Belgium. Picture: REUTERS/Eric Vidal

The company, a proxy for global economic activity, benefited in the past year from the strongest global growth since 2010. However, a tariff war between the US and trade partners including China, has sapped business confidence, dampening economic activity. Andrew Bonfield, Caterpillar’s CFO, said the company saw a $70m tariff bill in the quarter and higher labour and restructuring costs. Weak sales of machines at its high-margin energy and transportation business also weighed on overall profits, he said.

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