A Caterpillar (Cat) Excavator is seen working at a construction site near the New York Harbor in Brooklyn, New York, March 4, 2021.
Brendan McDermid | Reuters
Caterpillar reported a lower second-quarter profit on Tuesday, hurt by sluggish demand for construction equipment and higher costs tied to U.S. tariffs.
Shares of the company, often viewed as a bellwether for the industrial economy, fell about 6% in premarket trading.
Sweeping tariffs on U.S. imports have impacted companies across sectors, prompting many to rejig their supply chains and localize production.
Additionally, high interest rates and inflationary headwinds have pushed dealers to scale back on equipment orders and realign inventory to match demand.
Adjusted profit in the second quarter fell to $4.72 per share, compared with $5.99 a year ago.
