Caterpillar Posts In-Line Q2 Earnings, But Sales Miss Views

Shares of

tumbled over 2 percent in pre-market trading after the company reported weaker-than-expected sales for the second quarter and lowered its full-year sales forecast. The Peoria, Illinois-based company posted quarterly earnings of $710 million, or $1.16 per share, compared to $999 million, or $1.57 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings came in at $1.27 per share. Its revenue slipped 13 percent to $12.3 billion. However, analysts were expecting earnings of $1.27 per share on revenue of $12.67 billion. The average estimate among 38 Estimize users was for earnings of $1.34 per share and revenue of $12.99 billion. Its sales of construction equipment dropped 18 percent, while sales of energy and transportation slipped 12 percent. Sales of resource industries slipped 11 percent. For the full year, Caterpillar now expects sales of $49 billion, versus its earlier forecast of $50 billion. However, the company affirmed its adjusted earnings forecast for the year. Caterpillar shares fell 2.47 percent to $77.79 in pre-market trading.