DEERFIELD, Ill. (AP) — Caterpillar’s profits are down 46% with much of the global economy seized by the spread of the coronavirus pandemic.
The company has already withdrawn all financial guidance and said Tuesday that it expects that the outbreak will skew its performance throughout the year.
The heavy-mining and construction-equipment builder has been deemed essential by a number of central governments in maintaining infrastructure, and it’s adopted new safety protocols to continue operations.
About 75% of its primary production plants were still operating in mid-April.
Caterpillar Inc. earned $1.09 billion, or $1.98 a share, in the three-month period ending on March 31. A year earlier, it had earned $1.88 billion, or $3.25 a share.
If an item related to pension obligations is not taken into account, its earnings were $1.60 a share.
That’s below the $1.69 per share analysts surveyed by FactSet predicted.
Its revenue fell to $10.64 billion from $13.47 billion.
Caterpillar, out of Deerfield, Illinois, has lowered costs by reducing discretionary expenses and suspending 2020 base salary increases and short-term incentive compensation plans for many employees and all senior executives.
Shares rose slightly before the opening bell on Tuesday.