Caterpillar 2Q profit drops 77 per cent as dealers cut equipment inventories; outlook trimmed

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FILE - This Thursday, Feb. 28, 2013, file photo shows a parking lot at Caterpillar Belgium, in Gosselies, Belgium. Caterpillar Inc. reports quarterly financial results before the market opens on Wednesday, July 24, 2013. (AP Photo/Yves Logghe, File)

PEORIA, Ill. – Caterpillar says its second-quarter profit fell 77 per cent as dealers cut inventories more than it had anticipated and the company cut its profit and revenue outlook for the year.

The world’s largest maker of construction and mining equipment is reporting earnings of $960 million, or $1.45 per share, compared with $1.7 billion, or $2.54 per share a year ago. Revenue slid 15.8 per cent to $14.63 billion.

That’s well short of Wall Street’s expectations. Analysts surveyed by FactSet had expected a profit of $1.69 per share on revenue of $15.09 billion.

The global mining industry is slowing because of slower growth in China and slower demand for mining gear.

Shares of Caterpillar Inc. fell almost 2 per cent in premarket trading Wednesday.

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