(Reuters) – Caterpillar warned a slight drop in sales in 2025 Thursday, citing the low demand caused by high interest rates and the persistence of inflation.
On the New York Stock Exchange, Caterpillar action fell by more than 4% in the first exchanges.
The manufacturer of construction equipment, the results of which are considered a good barometer of economic activity, said to expect a lower margin in the first quarter than the previous year.
Sales of the Caterpillar segment dedicated to the building industry dropped by almost 8% to $ 6 billion (5.75 billion euros) during the fourth quarter. The difficulties of the real estate market in China have also weighed on infrastructure spending, dropping turnover in the region in the last three quarters.
In total, turnover fell 5% to $ 16.22 billion, against a consensus of $ 16.39 billion according to LSEG data.
Caterpillar nevertheless reported an adjusted profit of $ 5.14 per share exceeding the expectations of analysts who tabed on $ 5.02 per share.
(Written by Shivansh Tiwary in Bangalore, Pauline Foret, edited by Blandine Hénault)
Copyright © 2025 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
