Tariffs could raise Caterpillar's Q2 costs by $350 million, impacting sales and earnings

From Yahoo Finance: 2025-04-30 08:50:00

Caterpillar anticipates tariffs may increase second-quarter costs by up to $350 million. First-quarter sales dropped to $14.25 billion from $15.8 billion a year earlier. Earnings were $2 billion, or $4.20 per share, down from $2.86 billion, or $5.75 per share, a year earlier.

President Trump signed an order relaxing some U.S. tariffs on autos and auto parts, but impact on broader tariffs remains unclear. Caterpillar’s sales volume dropped by $1.1 billion with dealer inventories rising by $100 million, down from $1.4 billion increase in the prior year.

Caterpillar’s CEO D. James Umpleby III will become executive chairman on May 1, with COO Joseph Creed succeeding as CEO. For the second quarter, Caterpillar expects sales to be similar to last year. Full-year sales are anticipated to be slightly down compared to the previous year. Shares rose over 3% before the market open.

Read more: Equipment maker Caterpillar says tariffs may increase its Q2 costs by up to $350 million