P. M. BRIEFING : Caterpillar Earnings Down 67%
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PEORIA, Ill. — Caterpillar Inc. reported today that its earnings fell 67% in the second quarter, a confirmation of the company’s earlier projection of a sharp decline in profits.
The construction equipment manufacturer said it earned $46 million, or 46 cents per share, down from $141 million, or $1.39 per share, in the same period of 1989.
Revenue for the quarter totaled $2.95 billion, a 3% drop from the same period last year when Caterpillar recorded $3 billion in revenue.
The company attributed the decline to an 8% drop in sales volume, which was offset in part by higher prices and a $19-million improvement in revenue from Caterpillar’s financial subsidiaries.
In a statement, the company blamed a lower demand for machines among many industrial nations for its sagging profits.
On June 25, Caterpillar announced that new economic policies in Brazil are having a disastrous impact on the company’s profits.
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