Caterpillar Shares Plunge After Warning of Slower Second-Quarter Sales
- Machinery maker posted quarterly earnings that beat estimates
- North America sales growth counters declines in Europe, Asia
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Caterpillar Inc. reported first-quarter results that showed machinery sales slipping from a year earlier and warned that the trend is expected to continue in its second quarter.
Shares of Caterpillar fell as much as 9.1% in New York, the biggest intraday decline in four years, after the heavy equipment maker said in its earnings report that it expects second-quarter sales to be lower than the year-earlier period. While the company posted adjusted profit that beat analysts’ estimates, sales in its key construction and resource industries divisions fell, and overall revenues continued to show weakness outside North America.