Caterpillar Misses Q1 Forecasts Amid Tariff Concerns

Published 6 hours agoCAT

Caterpillar Misses Q1 Forecasts Amid Tariff Concerns

Caterpillar Inc. recently announced its first-quarter financial results, revealing a decline in revenue to $14.25 billion, which fell short of analyst expectations of $14.54 billion and a decrease from $15.8 billion during the same period last year. The company's adjusted earnings per share also came in slightly under predictions, at $4.25 compared to the anticipated $4.30, as reported by AP News.

The construction and equipment manufacturing giant is also bracing for potential impacts from tariffs, warning these could raise second-quarter costs by as much as $350 million, further straining its financial standing. Despite these challenges, Caterpillar's order backlog has expanded significantly, reaching approximately $23 billion, marking a 62.6% increase year-over-year, according to Seeking Alpha.

Amid these financial fluctuations and tariff-related pressures, Caterpillar is undergoing a leadership transition. Current CEO D. James Umpleby III will take on the role of executive chairman on May 1, while COO Joseph Creed will assume the CEO position and join the board. These changes come as the company contends with higher material costs and lingering supply chain issues, which continue to test its operational strategies.

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