Caterpillar Says China Sales Slow as Demand Dented In Asia

  • Company cites ‘unfavorable’ manufacturing costs in results
  • Revenue from machinery, energy and transport misses estimates
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Caterpillar Inc., one of the world’s biggest makers of construction equipment, is facing a slowdown in China while grappling with the impacts of higher costs to make its iconic yellow machines.

Caterpillar, often viewed as an economic bellwether, said Tuesday in its second-quarter reportBloomberg Terminal that construction equipment sales fell in Asia Pacific, citing lower revenue from end users in China. The company brought in $13.5 billion in revenue from machinery, energy and transportation, missing analysts’ estimates.