CATERPILLAR has released its second quarter results, showing a drop in both profit and revenue.
Compared to 2015, profit declined to US$10.342 billion ($13.82 billion) from US$12.317 billion while profit per share, excluding restructuring costs, declined from US$1.40 to US$1.09.
However, Caterpillar CEO Doug Oberhelman said he was pleased with his company’s financial performance and focus on its long-term strategy “given the difficult economic and industry environment we’re facing”.“For the quarter, our decremental operating profit pull through was better than our target range. Together with our dealers, we’re having success managing through the downturn in industries like mining and oil and gas, and in sluggish economic conditions in much of the developing world,” he explained. “In what is likely to be our fourth down year for sales and revenues, we’re proud of what we’re accomplishing – our machine market position has increased, including in China, product quality continues to be at high levels, and the safety in our facilities is world class.”However, Oberhelman said the company was cautious entering the second half of 2016. He explained there was no expectation of an upturn in important industries like mining, oil and gas, and rail.“Amidst these very challenging market conditions, our balance sheet remains strong, and our employees are delivering better performance on everything from safety, quality and cost management to machine market position. I’m inspired by our people as they’re the primary reason we’re weathering this downturn as successfully as we are,” he explained.